19

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articles that might be interchanged between Canada, and Australia, and New Zealand has only been obtained through the slow medium of the monthly mail; and in many cases it has been found that before orders can be filled the conditions of the market have undergone a change, and the proposed sales or purchases have had to be dropped. The Minister further states that it appears from the returns of Mr. Larke, the Commercial Agent for Canada in New South Wales, that there is an opening for a considerable trade that would prove profitable both to the Dominion and to the Commonwealth if the conditions could be promptly made known in both countries. It is affirmed by those who know the facts that an ample volume of Press news could be daily transmitted by the Pacific cable without in any way adding to the operating expenses of the undertaking. The Minister therefore recommends by way of experiment, and in view of other arrangements being eventually entered into, that Australia and New Zealand be invited to join with Canada in asking the Pacific Cable Board in London to allow the free transmission of Press news in both directions daily for a period of three months, under such regulations as may be deemed advisable, the number of words in each despatch to be limited to 500. The Committee submit the same for approval. John J. McGee, The Hon. the Secretary of State. Clerk of the Privy Council.

No. 67. The Manages, United Press Association, Wellington, to the Hon. the Postmaster-General, Wellington. Sir, — United Press Association (Limited), Wellington, 29th June, 1903. I regret I have been unable to see you, and in default of a personal interview take this opportunity of mentioning the matter I desire to bring under your notice. You may remember that I mentioned I had been endeavouring to induce the Australian Association to use the Pacific cable. Mr. Mackinnon, of the Melbourne Argus, agreed to do so, and actually sent instructions to London on the subject. Meanwhile, he communicated with the cable people, and asked them to arrange to distribute the messages from Southport. Thinking we might like to intercept them at Norfolk Island he included that too. We do not propose to do so at present, though the day may easily come when we should find it necessary to arrange for it. Now, he writes that they have flatly refused to do anything of the kind. Seeing that the rival company have been doing it for years he is not unnaturally taken aback. As he puts it, " thisdoes not indicate any very great desire to participate in our business," and I quite agree with him. Hitherto, there has been an arrangement by which the messages, on arrival at Adelaide, have been distributed from the telegraph office there to the papers in the combination, thus saving valuable time, and, I presume, expense too. At one time messages used to come straight to New Zealand for us, as well as those for the Australian papers, and no such objection as that raised by the Pacific cable ever seems to have been thought of. It is, of course, quite likely that the Pacific people are strictly within their rights; but do you think the attitude they have assumed is a wise one? I have ventured to think you will not, and that possibly you might see your way to interfere. Yours, &c, The Hon. Sir J. G. Ward, Postmaster-General. W. H. Atack, Manager.

No. 68. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. (Telegram.) Wellington, Ist July, 1903. Following is extract from letter from the Manager, Press Association, to the PostmasterGeneral : [No. 67.] Kindly communicate purport of this to your General Manager, and ascertain the significance of the alleged refusal; and whether, if such refusal made, decision might not be reconsidered in the interests of traffic, and in securing a class of business which does not at present come over the Pacific cable.

No. 69. The Hon. the Postmaster-General, Wellington, to the Hon. the Secretary of State, Ottawa. Sir,— General Post Office, Wellington, 10th July, 1903. I have the honour to acknowledge the receipt of your letter of the 15th April last, covering copy of a minute of the Honourable the Privy Council adopted by your Government, suggesting that as a means of bringing the existence of the Pacific cable more prominently, to the notice of the people of Canada, Australia, and New Zealand, the free transmission of Press news for a period of three months might be allowed. In reply, I have to inform you that the Government of this colony concurs in the view expressed in your letter, and would be willing that the proposal should be given a trial, but it has been ascertained that the Australian Commonwealth is unable to agree, as the law in force there will not admit of the suggestion being carried out. I have, &c, J. G. Ward, Postmaster-General. The Hon. the Secretary of State, Ottawa.