F.—Ba.

The scheme is not now broached for the first time; it was the dominant idea at the Colonial Conferences of 1887 and 1894. Since these gatherings the suggestion has again and again been brought forward, and views expressed in support of the project have been strengthened by reflection and confirmed by experience. To-day it is not for me to enlarge on the scheme or dilate upon the advantages to spring from it. I will merely state that a complete system of telegraphic cables for the whole Empire may be established without involving any extraordinary expenditure. And with respect to the question of State ownership, the evidence is indisputable and convincing. I need only refer to the admirable system of land-telegraphy throughout the United Kingdom. The telegraphs of the United Kingdom were at one time the property of private companies, who made large profits at the public expense. They adopted the policy of exacting high charges, in some cases ten and twelve times higher than the rates now levied. These companies, like other companies of the present day, made every effort to maintain the monopolistic privileges they enjoyed. It was decreed by Parliament, however, to establish a national system, and the whole came under State control. Since then the telegraph-lines have been extended to the remotest places in England, Ireland, and Scotland, and the charges on messages have been so reduced that any two persons, however widely sundered, may interchange their views on any subject at the small cost of 1 cent per word. This is the result of State control —under State control the utility of the telegraph has been enormously increased, and the charges on messages have been reduced in an inverse ratio to its increased utility. Moreover, it is satisfactory to know that every advantage has been gained without entailing any burden on the taxpayer. We have thus placed before us in the United Kingdom a model which may be reproduced on any scale ; we have a unique pattern for imitation in establishing a system of all-British cables encircling the globe; we may, indeed, regard the State telegraph system of the Mother-country as a microcosmic illustration of the electric nervous system, which the conditions of our world-wide empire already demand. All will recognise the value of such a system. There is probably no single object which in an equal degree would tend to benefit directly the whole British people, or in a higher degree would influence indirectly the advancement of civilisation. We must not, however, lose sight of the fact that the Pacific cable is absolutely essential to the larger Imperial scheme. If we examine a map of the world and weigh every geographical condition, it will be found that the Pacific cable is the key, and the only key, to a globe-encircling all-British telegraph system. By no other route than that of the Pacific cable can all Her Majesty's possessions be brought into direct telegraphic circuit without touching an acre of foreign soil. The annual report of the League refers to vexatious delays in connection with the Pacificcable project. The last serious delay can be traced to its origin eight months ago, but Ido not propose to allude to the unfortunate cause ; I will only mention that the Eastern Extension Telegraph Company has taken advantage of the delay, and made a determined effort to alienate the Australian Colonies from the scheme. That company appears to have left nothing undone to mould public opinion in the colonies in favour of a tempting proposal which they have made to them. The company has succeeded so far as to bring about a tangle in two of the colonies which may not be- easily unravelled. As I view the matter, it is the more desirable and expedient that the resolution before the meeting should be adopted by the League and urged on all the Governments concerned. I feel satisfied that if the recommendations contained in the resolution be acted upon it will not be possible for the company to injure the Pacific cable in any way which cannot be remedied. The public interests will be effectually safeguarded. With these few words I beg leave to move the resolution. Moved by Sir Sandford Fleming, seconded by Sir Charles Tupper : " The British Empire League in Canada is of opinion that a complete system of State-owned ocean cables, touching the British possessions only and extending to all Her Majesty's colonies throughout the globe, is a project of the first importance. This League, in annual meeting assembled, therefore recommends— (1) That the Home and Colonial Governments should, as a matter of policy, recognise the principle of State control of all British cables, and apply the principle as opportunity offers and as speedily as circumstances will admit; (2) that the Pacific cable should be at once completed as the initial undertaking in such an Imperial system of cables as that indicated; (3) that in all arrangements for connecting by telegraph the possessions of Her Majesty in any part of the globe, provision be made for ultimate State ownership; (4) that in permitting a private company to lay a cable to or from any British possession, landing privileges be granted only on the conditions that Her Majesty may at any time assume possession of the cable on specified terms." Motion unanimously adopted, after discussion.

No. 136. The Acting-Manager in Australasia, Eastern Extension Company, to the Hon. the Postmaster-General, Wellington. The Eastern Extension, Australasia, and China Telegraph Company (Limited), Sir,— Melbourne, 27th July, 1899. I have the honour to send for your information copy of a letter to the Hon. the Postmaster-General, Victoria, submitting a proposal by my company for an all-British cable to Australia vid the Cape, together with a reduction of the tariff to 45., and a further reduction on a sliding-scale as traffic increases. I have, &c, J. Euston Squier, Acting-Manager in Australasia. The Hon. the Postmaster-General, Wellington, New Zealand.

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