F.— B.

14

and control of a oable across the Atlantic between Great Britain and Canada, and that the tele-graph-lino between the landing-place of such cable and the point of junction with the Pacific cable should be owned and operated by the Canadian Government. 2. As regards the latter point, your Ministers are aware that arrangements have now been made for the operation by the Pacific Cable Board of a telegraph-line through Canada, and I presume that this arrangement will fully meet the wishes of your Government in this respect. 3. The question of the provision of a State-owned cable across the Atlantic received the fullest consideration of His Majesty's Government at the end of 1908, when similar proposals were made by Mr. Lcmieux, the Postmaster-General of Canada. His Majesty's Government then decided that it was not possible to accepi the proposal, one of the considerations which weighed much with them being the inexpediency of incurring heavy outlay on trans-Atlantic cables at a time when great efforts are being made to provide effective long-distance services by means of wireless telegraphy. i. Moreover, the existing trans-Atlantic service works with admirable efficiency, the terminal points of the cables are situated on British territory, and the landing licenses in this country guarantee complete control to the Government in case of emergency. There is, however, legitimate ground for dissatisfaction in that the rates press with undue severity on certain classes of the community. These grievances would be met. so tar us the general public is concerned, if ii should be found practicable to carry out a scheme based upon proposals made by the PostmasterGeneral of the Commonwealth under which half-rates would be charged in respect of telegrams in plain language accepted on the condition that they may lie liable to be deferred until traffic paid for at full rates has been disposed of. The Postmaster-General is at present in communication with the principal cable companies and Government telegraph administrations with a view to the adoption at an early date of a reduced tariff on this basis, ami .Mr. Samuel is not without hope that his efforts may prove successful. 5. His Majesty's Government sympathize strongly with the desire of the Australian Government for a further reduction of the rates for Press telegrams, and for the adaptation of these rates so as to admit of the Pacific Cable Board charging the same through rate on telegrams exchanged with countries on the Continent of Europe as on those exchanged with the United Kingdom. In view, however, of the important negotiations referred to in the preceding paragraph of this despatel), the Postmaster-General deems it inexpedient for the present to press these particular points on the attention of the cable companies. The matter, however, will not be lost eight of when a suitable occasion for dealing with it presents itself. T have, &c, Crewe. Governor-General His Excellency the liight Honourable the Earl of Dudley, G.C.M.G., G.C.V.0., kc.

No. 17. Ihe Right Hon. the Prime Minister, Wellington, to the Chairman, Pacific Cable Board, London. (Telegram.) Wellington, Ist November, 1910. On behalf New Zealand Government, 1 would strongly urge your Board to co-operate witn British Government in laying Atlantic cable to complete through line to Pacific. [P.O. Kin. and Constr. 10/226.1

No. 18. The Chairman, Pacific Cable Board, London, to the Right Hon. the Prime Minister, Wellington. (Telegram.) London, 4th November, 1910. Pacific Cable Board will bear in mind views of your Ministers through line to Pacific. [P.C. Fin. and Constr. 10/230.]

No. 19. The Right Hon. the Secrbtaby of State for the Colonies to His Excellency the Governor. Mt Lord, — Downing Street, 9th November, 1910. I have the honour to acknowledge the receipt of your telegram of the 2nd instant, in which fun report that your Ministers are desirous that His Majesty's Government should co-operate with the Pacific Cable Board in the construction of an Atlantic cable to complete a through line to the Pacific. In reply, I have to request you to refer your Ministers to my predecessor's despatch of the 21st October, which explains the present attitude of His Majesty's Government on the subject. I have, &c, Governor the Right Hon. Lord Islington, D.S.O. L. Harcourt. ■P.C. Fin. and C'onstr. 10/276.]