A—.s

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Conference is that it is a goal which you should endeavour to reach to have a service of 18 knots on the Pacific Ocean. If you can accomplish that service of 18 knots on the Pacific Ocean there is no doubt whatever —the thing is mathematical —that you can have between England and Australia a service of 25 days, which is far in advance of anything we have at the present time. Of course, it requires some money. This thing cannot be done without we have more expenditure. No line could undertake such a service as that unless it had a liberal subsidy from the Governments concerned. What should be the proportions of the different Governments interested in this, is a question, which, at this moment, I would not be prepared to venture any opinion upon. In the resolution which I have submitted, I simply say that the service ought to be supported in not equal but equitable shares. I am prepared to say that the Government of Canada would have to contribute liberally, perhaps more liberally than the others, because it would have to contribute to both sides, both the Pacific and the Atlantic. Therefore, Lord Elgin, I submit this resolution to the favourable consideration of the Conference. Mr. DEAKIN : My Lord, T am very glad that this proposition has been submitted by the Prime Minister of Canada, and feel sure that the Common 1 wealth would look upon it with the utmost sympathy, even if it went no further than studying the interests of Canada itself in her Atlantic service, although that is not a matter on which we are entitled to speak. It appears to us manifest that the Canadian position cannot be secured, or its claim as a part of the Empire fully recognised, until it is enabled to meet its formidable competitor to the south with a means of communication equal to that which is supplied to New York. We recognise that, and sympathise with every effort which may be made to give effect to it. But, of course, the interest of Australia in the Pacific trade might be as great as that of Canada is in getting its direct communication if we can foresee the possibility of obtaining such a service as Sir Wilfrid has referred to, on terms that the Commonwealth could afford to face. It would mean so great a reduction of the time at present occupied that it would be invaluable for a mail service. Our difficulty is that we can scarcely see how with vessels of that speed with the freight charges which they would make, and with the double task of transhipment involved by a railway journey between two lines of mail steamers, it could ever become a cargo line. Mr. LLOYD GEORGE : That is one of the questions I wanted to put. Mr. DEAKIN : The goods you send to us are goods of bulk and weight, and when our ships face foreign competitors, especially those subsidised, the competition becomes very keen. Certainly, British floods could not afford to pay mail freight, except for small, exceptional, ot light parcels. In the same way the raw materials we send to you are even more bulky. The charges on two transhipments put them out of the category of possible trade. This would, therefore, be for us a fast passenger and mail line of communication, and as such, very valuable. We should welcome it most cordially if it can be financed. The saving of a number of days is a consideration for commercial men who travel or who communicate by post. Consequently, we do not look coldly upon this proposition, though I am bound to say that its economic possibilities on our side are so limited that the subsidies required may be quite beyond our means. My colleague, in whose Department these questions more immediately are, has made some examination of this proposal. CHAIRMAN • We should be glad to hear Sir William Lyne.

Fifteenth Day. 14 May 1907.

Mail Service to Australia and New Zealand via Canada. (Sir Wilfrid Laurier.)