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Maps, plates, charts, etc., moy be filmed at different reduction ratios. Those too ierge to be entirely included in one exposure are filmed beginning in the upper left hend corner, left to right and top to bottom, as msny fremes es required. The following diagrams illustrate the method: Les csrtes, planches, tableaux, etc., peuvent Atre fllmte A des taux de rMuc^ion diff Arents. Lorsque le document est trop grand pour Atre reproduit en un seui clichA, 11 est fiimA A psrtir de i'engle supArieur geuche, de geuche A droite, et de heut en bas, en prenant le nombre d'imeges nicesssire. Les diegremmes suivants illustrent la mithode. 1 2 3 1 2 3 4 5 - 6 ■I /%./, 4.h,^ y^^ s ^.■«r'.f'.v m THREE LETTERS ON THE PACIFIC CABLE nr Sir SANDFORD FLEMING. No. I — (November 15th, 1899.) To the Right Honourable Sir Wilfrid Laurier, reforrinp to the new proposal of the liastern Extension Company to lay a eable across the Indian Ocean, the effect of the proposal on Canadian as well as British interests, and urging that the right be reserved to bring that undertaking under State control. No. 2 — (September 5th, iS<^.) To Sir Wilfrid laurier, referring to the new policy of tile Home Government, announced to the High Commis- sioner for Caniida and the Agents General for Australasia on July 4th, 1891^, the terms of the pro|K>sal and the delay anticipated there- from. No. 3 — (July 1st, i89<).) To the Honourable J. Israel Tarte, Minister of Public Work.s, narrating f.icts bearing on the influence e-xercised by the Eastern Extension Company, previous to July, 1899, to frustrate the project. H m iM liECJENT CORKESPOXDENCE THE PACIFIC CABLE Ottawa, November 15, 1899. The Right Honourable Sir Wilfrid Lairier, Prime Minister of Canada. Sir, — III the report submitted liy me of date Septcinl)er 5th, on my recent mission to England, and in my letter to the Honourable Mr. Tarte dated July ist, appended thereto, I referred to the persistent efforts of the Easteni E.xten,siim Company to fnistrate the establishment of the Pacific Cable. I have to-day received a communication from the Department of Trade and Commerce, by which I learn more definitely the line of action now iK-in^j taken by that company in Au.stralia to defeat the project. My own name is used in dis- cussions in the press of the southern coh>nies, and it is due to myself that I should submit some explanations. At the same lime I feel that it is still more important in the public interests that I should direct your attention to the matter, in order that you may, if you deem if advi.sal>le, transmit my explanations for the informa- tion of the Governments concerned. The communication received through the Department of Trade and Com- merce poes to show that the Eastern E.xtension Company has made a formal offer to the Australian tiovernment of very great importance, and the offer made is supjxirted very strongly by the Postmaster General of South Australia, Sir Charles Todd. Moreover, every effort is being made through the press to influ- ence (Hiblic opinion in it* favour. The offer is practically to substitute for the Pacific Cable a cable across the Indian ( Icean from Australia to .South Africa, where a connection would be formed with the lines to h'ngland. To make the proposal as attractive as possible, the company offer at once to reduce rates from the |)reseiit minimum charge of 4s. i)d. per word to a unifonn charge of 4s. per word, and they offer to make fur- ther reductions a.s traffic increases. The company a-sk no subsidy or guarantee, but they ask the privilege i>f collecting and distributing cablegrams in the prin- cipal cities of Australia, and along with that privilege the right to use and control the Government land lines from those cities to the terminus of the cable. Sir Charles Todd has always been a consistent opponent of the Pacific cable, and, as might l)c expected, he highly approve^ of the new proiKJsal, and suggests that the Pacific cable should be postponed and in the meanwhile the Eastern Extension Company allowed to carry out their i)lan. It will be obvious that if the Eastern Extension Company be granted the privilege they ask, they will obtain the power to monopolize nearly all cable busi- ness. They would be in a position at once to cut rates and make contracts for a term of years with the leading mercantile firms, and thus CfJiitrol the greater i«rt of the over-.sea telegraph business. With the.se privileges granted them they would have it in their power to prevent the Pacific Cable being a commercial succeM. ■t yr ■'V.-i:^:::'i'] n ■:1fi*i- ill- « ' Sir Charles Tcxld is unalilo to sec any advaiitajji's in tlie I'acific- cal)lc or any necessity for cstahiishinfj it. He takes an exceedingly pessimistic view of tiie traffic and the share of it which a trans- I'acific line would jonnnand ; he unduly increa^ies the estimate for maintenance, for working expenses and for other annual charges, and he urges that, in order to secure innnuniiy from interrupticjn, tw() cables across the I'acific will he necessary, involving, as he says, an initial capital outlay of £4,000,000, instead of £1,500,000 at one time deemed sufficient. In my letter of October 28th, i8y8, to the Right Honourable Joseph Cham- berlain, Colonial Secretary, I set forth among other things the innnense advantage to the whole Empire of a world- encircling cable .system under State control, and I pointed out how this could be secured without touching foreign soil. This pro- j)osal embraced the following new lines, viz. : — KNOTS. (i) A calilc across the Pacific Ocean from Canada to Aus- tralia and Xew Zealand 7ii50 (2) A cable across the Indian Ocean from Australia to the Cape of Good Hope 6,500 (3) A cable across the Atlantic Ocean from the Cape of Goixl Hope to Herniuda 6,600 At Benmula a connection would be made with England by lines laid, or to be laid — the three cables, viz., across (i) the I'acific, (2) the Indian and (.V) the Atlantic Oceans, would constitute a globe-encircling system of telegraphs touch- ing -only l'nd division of the world-encircling telegraph proposal mentioned in my lettei to .Mr. Chamberlain. So soon as I learned that our adversaries had made overtures to the Victorian Government respecting it, I sent the following letter to the Premier, Sir George Turner : — "Ottawa, September 14th, 1899. "Sir, — By last mail from Australia I receivey the press, and especially hy the liritisli press. 1 venture, therefore, to ur^e \ipoM your (iovern- luent that in anv afjreenient entered into witli the luistern h-xtcnsion Company to lay the new cahle pro|)ose(l to he laid across the Indian ( )cean, the rij;ht he reserved to take possession of it. on Kiviiiu notice and payinjj a stun e of the Sin),'a|)ore and HonR Kong second ca!)lc agreement of 1893." 1 have the honour, Stc, SAN'DKORD FLEMING. I-'rom a sense of di'ty I cannot too strongly pres>i upon your Government and upon eacli Government interested, the importance of the recommendation contained in the above letter. It is a matter which concerns Canada cc|ually with the Australasian C'olonies ; it concerns tlie whole liritisli I'jnpire that no new obstacle should be raised to obstruct the laying of the Pacific C'lblc or render it impossible to establish, step by step, a system of State-owned cables encircling the globe. There is ni>t the smallest objection to the lia-stem Extension Company laying a cahle across the Indian ( )cean under the condition mentioned. There is indeed everything in favour of such a proposal. The |)resent state of things in .South .Africa renders the existing line,s oi telegra])hic coimnunication insecure. They pass through a number of foreign ports, and without much trouble sym- pathisers with the enemy may tap the wires, or, if they choose, interiupt them and render them useless, as is actually the case at the ])resent moment with the Fast .\fricaii line. If, unfortunately, luiropean troubles should also arise, the means of telegraphic communication may be instantly cut, owing to the fact that ;ill cables laid, or being laid, traverse shallow seas liordcring I'rance. Spain, I'ortugal, .Morocco and other parts of Africa. If cables across the Indian and Pacific ( )ceans existed lo-d.iy. independent commiinicntion could be maintained by the Canadian route between the heart of the Empire and South .-Vfrica, as well as with the Australasian Colonics. Tlie recommendation respecting which I venture to make this appeal, i^ to reserve the right, on behalf of Her Majesty's (iovcrnnient. to take iiossession of the cable proposed to be laid across the Indian < )ccaii hy the Eastern l'"xtension Company, .\mple precedent for such a course will be found in the following two articles wisely inserted by the .Marquis of Ripon, the then Secretary of .State for the Colonics, in the agreement of October 28th, i8»)3. for the Singapore and Hong Kong second cable. "Article 5. Her Majesty's Government shall have the option at any time of cancelling all the foregoing articles of this agreement, by giving to the Co;-.-.pany twelve months' previous notice, and on payment to the Com|)any of a sum of £300,000, being the estimated cost of laying such second cable." " Article 6. Immediately on the payment of the amount provided in the last |)receding article the said .second cable shall become the property of Her .Majesty's Government, and the agreement shall at once cease and detennine." There could be no better precedent to follow in this instance. The Canadian I'ostmaster General, Mr. Mulock, in introducing the Pacific Cable resolutions last July, pointed out to the House of Connnons the value of the reservation made by the Marquis of Kipon. Mr. Mulock said (I quote from Hansard) : " When you come to read the agreement, I see nothing in it to cause u^ to doubt for a moment that we establish cable communication witli the Orient when wc establish ct)nnection by cable with Australasia. That agreement provides that the Imperial Goveniment can purchase the line of cahle, the second cable con- structed between .Singapore and Hong Kong for the sum of £300,000, which I ()rcsume fairly represents its co^t. Once the English Government acquires that cable there only remains the connecting link between tlie mainland and Austral- I ill il asia. and von liavt- direi-t cal)lf ami tfli'K'rapliic lumimmii-alion via Australia between Canada and Houk Koni" and Jaiy cable cuni- municaticin— parlii-ularlv in view nf the fait that the I'olonies uf Australasia uwn the teleffraph line.s aeniss the island continent of Australia— any power, that is any Uritish power, could prevent us forcinj^ our way by •ele(;rapli connnunication with China ami Japan. * • ♦ I re^jard the pmposition. though it nominally provides for connnunication only between Canada and Australasia, as practically coni|)letinK cable connnunicati(«i between Canada, China and Japan." A cable across the Indian ( )cean, laid under the same conwii»w9i,pijif.'if;w)"w. £^b Halifax, September 5th, 1S99. Tlic Right Hoiiourablu Sir Wilfrid Lalriek, I'ritnc Minister of Canada. Sir, — I wrote you from London intimating that 1 proposed to leave for Can- ada on Aufjusi 14th. ( )n tiie 25th 1 rcaclievl ' )ttawa, and immediately reported my return to the Secretary of State, you being aljsent. I have now the honour to report on the subject of my mission to England as follows : — The ( )rder in Council appointing the Honourable J. Israel Tarte, Minister of I'ublic Works, and Lord Strathcona, High Commissioticr for Canada in London, Commissioners in the matter of the Pacific C'ablc, also appointed me expert ad- viser. This Order in Council yon placed in my hands on June 21st ; on the follow- ing day ! left Ottawa to join Mr. Tarte on board steamer at Montreal, and with him I proceeded to luigland, where we arriveil on July 5th. It became my duty on the voyage to furni.sh Mr. Tarte with all the informa- tion in my possession, on the subject of the cable, which he desired. Among other things, I sujiplied facts and explanations resiiecting the hostility of the I-'astern Ivxteiision Company, and the adverse intiucnce it had exercised. It was deemed expedient that 1 sliould j)re.sent the latter information in the fonn of a letter, in order tliat, it re(|uired, it would be rea On July 6th Lord .'strathcona informed Mr. Tarte and myself that a con'er- ence had been held two days previous at which he and the Agents deiieral for \ew South Wale^ Victoria, Queensland and New Zealand, met the Colonial Secretary, Mr. Chamberlain, and the P'irst Lord of the Treasun', Sir Michael Hicks-Beach. It was then announced by the two la.st mentioned gentlemen that the Home (lovernment had decided to unite with Canada and the Australasian Colonies in establishing the Pacific Cable as a joint partnership State undertak- ing, and that the Imperial Treasury would arrange to provide the capital required. Lord Strathcona read to us a cojiy of a cablegram which had on the previous day (July 5th) been sent to Canada, Australia and New Zealand in respect to the new proposal. This cablegram was afterwards confirmed by a minute of the proceedings of the Conference of July 4th. The minute was issued by the CoUmial Oflfice on July istli, and forwarded for the infomiation of all the Governments concerned. When we left Canada the position of the proposed work and the attitude of the Home Government in rcsjx-ct to it remained substantially as set forth in the document? relating to the Pacific Cable laid before the Canadian Parliament last session. Reference is |)articularly had to the papers given on pages 87 to <)8. We were greatly surjirised and gratified to learn that a few hours before our arrival in England the policy of the Home Government had been entirely changed, that there was no longer any hesitation on the part of the Mother Country to become an active partner in the enterprise along with Canada and the Australasian Colonies, that the principle of joint State ownership was fully acquiesced in, that the expectations of Canada and the Colonies were to be more than met, as the First Lord of the Treasuiy proposed to utilize the credit of the United Kingdom in providing the whole of the capital required to establish the work in a complete and satisfactory manner. ± ■■':■ ■ ,< . »; '■ . - -1- mm 6 (Jratifyinjj; as this infiinnation proved, the satisfaction was soiiii'what lessened l)y one part of tin- iiroiiosal. It is a mere detail, hut a detail which, to niy mind, appeared of very threat importance, as it involved delay, and delays are always danfferous. It was proptjsed at the Conference that the Provisional Hoard of Coniiiiissioners should consist of eight members, three to be nominated by the Australasian Colonies, two by Can.ida, and three by the Imperial Ciovernment. I at once took excejition to the niunber allotted to Australasia, and pointed out as i'lert were four contributing colonies the limitation of the number of repre- sentatives on the board to three would, in all probal)ility, have the effect of causing serious delay, and that it might even endanger the success of the whole scheme. It was (piite obvious > my mind that it woulil be a matter of difficulty for f.iur Ciovernments to agree in the selection of three representatives, and that practi- cally it could only l)e done by one of the Colonies consenting to remain unrepre- sented. I ventured to suggest that the four contributing colonies should be given one representative each, and that the representation of the Imperial and Canadian fiovernments should be increased proportionately. I heard nothing in favour of eight in place of nine, ten or eleven connnis- sioners, except that "a large Ixiard i,s cumbrous and undesirable.'" While admit- ting that a small board is, under ordinary circumstances, better than a large one, while recognizing that a pi'rtnanail lK)ard might with advantage be reduced to less than eight, ])erliaps even to three, commissioners, seeing that the duties will be chiefly of an executive character, it seemed to me of the first im|)ortance to have the pnivisional board speedily constituted, anard could be organized and its work pro- ceeded with within a few days after the arrival of Mr. Tarte and myself in England. These views were not acted upon, and nothing resulteil during the five weeks I remained waiting. Indeed, so far as I know, no ])rogress has been made towards constituting tiie Hoard up to the |)rcsein date. Meanwhile the ICa,stem ICxtension Company is displaying great activity in Australia. Its agents are doing every- thing in their power to jjrolong the delay. Since my arrival in Canada I have received a number of letters from Australia, some of them dated so recently as Jidy .^Hth. They all go to confirm tiie views I have exjjres.si'd. As they are private, 1 regret that I caimot append them to this report. 1 beg leave, however, to refer you to a letter, dated July I7tli, received by the Department of Trade and Com- merce from the conmierciai agent of your Government in .Sydney. In that letter will be found some indication of the situation in Australasia, and the activity of the liastcrn Exten.sion Company in their persistent efforts to frustrate the project, I have the honour, &c., SANfDFORD FLEMING. SS. " MoNTFORT," At Si:.\, July ist, 1899. Hon. J. IsKAKI. T.ARTK, Minister of I'ublic Works for Canada, SiH, — I feel it to be my duty, under the Order in Council in pursuance of which I am now accompanving you to England, to submit for your information some facts bearing on the efforts i>f Canada, .Australia and New Zealand to estal)- lish a Pacific Cable the hostility of the I^astern Extension Telegraph Coni|)any, and the attitude of the Home Goveninient in relation thereto. Canada, Australasia and New Zealand have long desired and long endea- voured to be connected telegraphically by a Pacific Cable. i ■ WM. Every effort |)ut forwanl tn accomplish the desired end has met witii deter- mined ()]>positinn i>n the part of tlie Eastern Extension Company, a powerful financial organization, with great influence in official <|uarters llie hostility of this company is due to the fact that il enjoys a rich nujii-jpoly, whicli, incidentally, wi uld be interfered with by the establishment of the Pacific Cable as a national work. The company has no appreciation of the great Imperial ends to be ^'ervcd by the projected telegraph. It regards only its own profits. Its design has always been to thwart Canada and .Australasia in their eflorts to establish the cable, and in frustrating their efforts to strengthen and. if possible, perpetuate the monopoly. In the following pages will be narrated some of the means taken to defeat the establishment of the Pacific Cable. It is unpleasant to think that the Home Government, or those acting for the Home tiovernment, have been less in sympathy with the aims anil aspirations of Canada and the Australasian Colonies than with thtKse of the Eastern I^xtension Company, but it is difficult to see that the evidence of facts leads to any other conclusion. In con.se(|uence of the facts which have come to light — some of which will be cited — an impression prevails that the Home Government has not acted fairly to Canada and the Australasian Colonies, but ha,s regarded the interests of the Eastern Extension Company as paramount. The feeling on thi.s point in ])art, found expression in the Canadian Senate, on tlie 8th April last, in a discussion in which Hon. David Mills. Minister of Justice, the Hoii. K. \V. Scott. Secretary of State, and the Hon. Sir .Mackenzie Howell took part. Wherever the responsibility niav rest, the fact remains that the I'acific Cable luis been long delayed, and when laid its cost will be greatly enhanced without any corresponding increase in effi- ciency. There arc many circumstances that h.ivo given rise to the prevailing impres- sion that the Home authorities have unduly favoured the monopoly in its oppo- sition to Canada and the Australian Colonies. .Among these may be mentioned the circumstances connected with the .Vautical Survey, as they are given in the report of his mission to Australia by the .Minister of Trade and Commerce. (See Report laid before Canadian Parliament. i8()4, p. 106.) The facts in brief are these : From the first a Pacific Cable had been declared to be impracticable by the Eastern Extension Company, owing, as alleged by them, to insui)crable physical difficulties existing on the route. To remove all doubts, it was deemed ex()edient to obtain an exact survey, and in order to invest the ])roject with public confidence it was important to have an examination made by the highest nautical authority. The Admiralty was ap|)ealed to. and for several years the matter was urged upon the Home Ciftice. London, was informed of the intended mission of the Canadian Minister, and re(|uested t<> promote the object of his mission, 'llie Minister sailed from Hritish Columbia on September ijtli. 'Ivvo days before he sailed, that is to say on .Sep- tember istli, dcsiiatchcs were sent from the Colonial ( )ffice to each of the Aus- tralasian (iovernnients coiitainiiifj only documents adverse to the I'aeific Cable. 'I'licsc consisted of a letter from the (ieiieral Post ( )rtice, London, dated July 5th, iKi>3, .-iiid a report by the 1 lydrograplier, dated bebruary 28th, 1887. (Sec .Mission to Australia, p. 79.) The Minister reached Australia, and had conferences on the following dates, viz. : — With the Government of New South Wales, October nth. 1893. With the Ciovernment of Queensland. October 2otli, 1893. With the (government of \ ictoria, October 30tli, 1893. With the Government of South Australia. Xovemher 2nd, i8<)3. These several Governments had received copies of the antagonistic docu- ments before the arrival of tlie Canadian Minister, and, as he points out in his report, these documents were not helpful to his mission, (p. 76.) Again, while the Canadian Mini.ster was in Australia, engaged in the above conferences with the Australasian Governments on the subject of cable connec- tion, an agreement designed to strengtlKii the monopoly of the Rjistem Extension Cii insignificant ti>r ownersliip by any power. This little islet is known as Xecker Island. It is situateil 400 miles westward from Honolulu, and was not then included in the Hawaiian ijroup. Other islands had been claimed by Hawaii .xs appanages, but Xickcr Island was not included. Indeed, luitil the following; year, wiieii it was visited by llawaiians for the first time and taken possession of by the Hawaiian (iovermiient, it was entirely open to the IJritish Government to take possession of it. Every inquiry, at Honolulu, during the Minister's visit in 1893, having satis- fied him and the resident British (."onuuissioner that .\ecker Island was unclaimed by Hawaii, or by any p^wer, a memorandum was soiU to tiie British (iovernmcnt pointing out its ,singiilarly commanding geographical position for telegraphic puqiose.s, and as possibly it was of vital importance to secure it as a landing station for the i'acific Cable, it was strongly recommended that it be immediately taken possession of in the name of Her Majesty, The circumstances respecting the availability of N'ecker Island were, without loss of time, made known by the Minister of Trade .and Connnerce to the (ioveni- ments of Canada, New South Wales, \ ictoria and (Jueensland. Each of these G'weniments were convinced of its great utility, and in ( )ctober, 1893, sent instructions to their respective High Conunissioner or Agents ( ieiural in London til urge upon the Home ( lovernmem the ailvi.sability of immediate action being taken in securing possession of this unclaimed islet for the pun'ose of making it a landing station for tlie I'acilic Cable. The /\ustralian Governments, as well as the Canadian Minister of Trade and Commerce, having read the despatches above mentioned recently transmitted by the Colonial ( )flice, were impressed with the alleged impracticability of the I'amiing Island route, and looked upon the po.ssession of X'.'cker Island as vital. It was accordingly arrangenilnenei> was given to the ■iuestloD by the Chairman In his opening address anil by delegates In dlseiissions, and that at the close of the Conference a resolution was uuanlniuusly passed declaring tliat " thu eouneetlou of Canada with Australia l)y direct sub-marine telegraph across the radtle is a project of high linportau<'e to the Kmplre." '.i. Since the Colonial Conference, nuuiy efforts have been nuide to Indueo the Home (Jovernnieut to take some step which would practically advani'e the l'a<'llle Cable. Re- cently It has liecn felt In Canada and Australia that the time has arrived when the tele- graphic connection shouid be formed. The postal and telegraph coiu'erence of the Aus- Irallon (^)hinleH met la March last and pa.ssed a resi.'atlon to that effect. 4. The Uoveruinent of Queensland and New South Wales, Impatient of ilelay and wearied 'waiting fur usulMtunee from the Home (Juvvrumeut, acceitted the offer of a ■.( 'A: :^'^'Si»JaMiB^ ji i« Tt . M ;.*aiJt.-a» Vft i rr'-nTHt.i:to fssr '^ m »m ' ■ irnkt't i I ■ * ■ ' ■ • rt J i itfiT i Bra w-i 10 lYcncli i"jiii|iuii.v to lav ii rulilc In .\"\\' Cali'iloiila. wlilrli lis |inij<'<'t<>i'x IiiIi-ikIimI Hhotild form Ihi' tirm link ur hki ihIIi'm in ii inlilc uiidss tin- riirlllc tu ih.' rmml of Ninili AiiiiTlca. T). Till- I'anailliiii liiivi'i'iiniciit In Si'pli'nilKT Uim. Hrni llif Ihinonralili- MarkiMizIc ItoWfll. .MhiNti'i' III' 'I'laili' anil ('nninii'i'ri'. i{h a ilrli'^iali' In Aiislnilia I'nr llii' |iui'|inMi> iil' rxrIianKinK vIi'Wh iitHin niatti'is nl' tiailr ami trii'mapli innnri'tlnn lii'iwi'i'ii tlii' Cnlnnli'H Hilil the Itnnillilnn. 'Ilic iinili'l'sl^'nril arcniiilianli'il Mr. Iliiwcll. anil alUi' rari'rilll.v coii- Mlili'rhiK all Mil' farts anil iliriiiMNtanii'N. |in'|iai'ril a Mii'iiinranilinn ilatril lllli OrtnlMT, wlili'li Mr. Ilnwi>ll lirnuKlil !■> Hif imtlri- nl* llii' Ni'vi'ral ilnvi-rnini-niM fnr llii'lr Int'nrnaitlou and ruMHiili'rallnn. tl. Till- (iiivi'rnnr CcniTal nf Canaila fnrwarili'il nn .lannary litli. ISICI. an apprnvoil Mlniitc nf I'rlvy Cniinrll. HiilinilltInK to tlii' llnnii' Cnvrrniiii'iit I'orri'Hpniiili'nrc, ailvornt- Imk tilt' op|Nilntnii-nt of a spnlal rniiLinlKsInn tn linpilrr Intn tin- imiHt I'l'asllilc lacaiiH of rnnmlctlnK till' li'li-Ki'apli system nf till- lOmpire. Tin- t'ninnlal Si'iri'lary. I.iii'il Itlpon, lu Ills rt'i>ly nf Manli L'-iiil. slalril anmnK ntlirr lliinn«. tliat llrr .Majesty's Covernnient "takua Kr<'at Interest In tills matter anil wonlil welinme any pi'npnsal wlileli wniilil afrnril n praetleal solntlmi nf a iiiiestion » lilih Is nf ronslileralile linportanre In the Kiiiplre frotn n slrateulenl point of view. " T. It Is respei'tfiiliy sniiinltteil lliat tlie memnraniliiin of (letnlier lltli Hnlinillted liy Mr. Kowell to the Australian tinvernmiiits rnriiiiilates a snliillnii nf tlie ipiestlnn as it now Htanils. Tills soliilinn was favonralily rereiveil In all the Colnnles. anil lominenteil on in the press as a I'U'ar anil iiractleal iNpnsitlnii nt a srhenie fnr islalilislilni; an es.sentlally Ilrltlsh (.'able ai-rnss the I'arllie. 8. The (iiivernmeiits nf Qneen.-.lanil atiil New South Wales, althniiKJi parties to the laylDK of the New Caleilonla Cable liy a I'reiirli roinpany. have slunltleil their preference for a British Calile anil are prepared to .join hands with the Dnmlnlon and their sUter t'ldniiles Iti estahllshliiK a teh'Ki'aph tn Canada fnile|iriiileMt nf forelKi' ronneetlnns. !). One nf the Mist essentials to the estalillshliient nf a ItritNIi tians d'acltle tele|;rnpll Is the pnssesslon, at siillalile Intervals, nf inld-nieati slatiniis. In the Sniitli I'acllle, (irent llritaln has taken pnssesslon nf a sntlleieiit niimli'er nf Islands fnr mid stations, lint In the North raellle there are sliiKidarly few Islands avallalile. 11). The Hawaiian Krniip nf islands :ire the tiearest tn Canada, atid until reeeiitly It was lielieved that on niie nf tlieni a hindlnt; plaee rnnld lie seenreil nn neutral snll. These Islands are nnt, however, within Itrltlsli Inllnence and their polltleal future Is a matter of donlit and iiueertalnty. 11. Outside the Ilawalan );ronp, the nearest and only islands in nny way suitable for the piH'iiose nf a mlil-oiean station are Xeeker and i-'annln;; islands. The former oo- cniiies a position HHI miles nearer Vanennver than the latter. KannliiK Island Is, how- uvor. the only one of tlie two wlilih up to tiii- present date has been formally made a British possession. ]-. lu a enmiiiuiiicotion from tlie I'ostiunHter (ieneral to tlio Heerotary of State for the Colonies, dated ,Iuly .'ith ia^t year. It is stated tliat the KiiKlneeriii-Cliief of the I'ost Olllce Department takes an iinfavoiirable view of the laylnj; nf a iiible from Vancouver ta Kanniug Island, nwiiiK tn the dlstatiie. Siirli a length nf lalile lias never yet been iuid, and in Ids opinion " it may well be dnnlited whether, wltli e.\istln); appliauues, the Van(onver-I''anninK sertion lonid in- either laid or maintained, ' If this opinion Iwis weight, it dds enormously to the importance of Necker Islanil, to which the same objection does not apply. i;i. In crossing the raritic in Scptemlier last, tlie undersigned made careful liiqniry regnrding Necker Island. It is a small, rmky, treeless spot In the middle of tlie ocean, less than three-quarters of a mih' lonn an I.ikki feet broad with an extreme elevation of 'J8t» feet. I'urther particulars are given in a inemo. dated Ilnnolnlu. September 'S\, lu the possession of the tiovernmeiit. .Necker Island is perfectly valueless for any ordinary purpose, its geographical pnsitinii niiiy gives it Impnrtance as a desirable point for laud- ing a subnairine cable lietwcen Canada and .\iistralia. H. Iiiuiilrles at Honolulu farther elicited the infnrmallon that Necker Island is un- (K'cupled and unclaimed by any maritime power; that the late King, with tlie ambitious view of formiiig an oceanic Kmiiire. issued some yea's back a proclamation claiming as appanages nf the Hawaiian Kingdnin ail the ishinds of the racllic; tills proclamation has, however, never been recognized by other milloiis, and France, tiermany and (ireat Bri- tain have since It was Issued taken possession of such of the I'acihc Islands as they each doemod e.xpedient. It was further learned at Hnuoiuiu tliat Necker Island is entirely t)0- yond the legitimate spliere of the Hawaiia i. Kingdom, and tiiat the claim set up by thu lute King Is considered nntenab: ■. If). Kverything goes to siiow that the ct-labilshnicnt of a telegraph across tlie I'acilic eanuot much longer be pnstpnned, the nieri fad that two of tlie t'olonh's grasped at the [irospeot of being teiegraiihlcally ennnei'icd Willi North .\merlca, even by a foreign com- pany, gives some indhatlon of the demand iVr a racllic (aide in .\ustralla. A si.trtlclent 4iroof of Us necessity Is furnished in the stramllng of one of the llrst steamers on the Cannda-Australla line and the long suspense l;i learning the I'aiise of the disaster with tho nceonipauyiug an.\iety as to the fate of passengers and crew. Tlie strongest po.ssiblo fetding e.\lsts lu Canada and Australia that the I'acltic Cable slioidd be tn every respect British, aud the nu'inorandnin submitted by Mr. Bowell to the Australian t Jovernments, clearly points out tliat the Cnlouies and Canada can estaiilisli u Brltlsli Cable without drawing on the Iiuiierlai K.Mlieiiuer. It is ncci'ssary, however, to have mldoeean sta- tions at suitable points, and tlie one point on tlie whole route not taken possession of lu the name of Iler Majesty is Necker Island. The iiosscssiou of Necker Islaiul is indis- pensable, if the views of the highest electriial authority lu the service of the Imperial tiovernment are well founded. Whih' the undersigned is unable to endorse the views of this authority, he is bound to respect the source from which they come, and obviously great importance is attached to them by the Home (iovernment, as they were forwarded for the Information of the Colonies by the Coloulal Minister In September last If the opinions of this imperial olflcer be sound, tliere <-au be but one conclusion, and that is, no British Cable can be laid across the I'aciHe without the possession of Necker Island, aud the Colonies aud CauaJa may be driven to the alternative of landing the telegraph on foreign soil las in the case of the new Caledonian Cable) thus abandoning the strategical advantages of a traus-raeino telegraph essentially British and the assurance It wouUl give of strengtbeuing Brltanaic unity lu the outer Kmplre. Necker Island can only be I n »eouiV(l by the iirtlon of tin' Iloinp ailthortltcN. iiiiil tlic way to Uh poxm-HRlon In n« Hlmi)l«> iiikI uh I'lcar ax In llif I'Um- of otlicr InIiiiiiIh In tlir I'acllli' (in wlili'h tlic Ili'itUli tliiK liiis hciMi rulMtMl witliln tin- imihI frw yi'arN. Tlit< nnn. At last it became known in Honolulu, toward the end of May, that Necker Island (y.isses,sed a certain value for tran. Pacific cable puqjoses, and the Hawaiian (ioveniment innnediatelv dcsi)atche(l an expedition to take possession of it. A landing was effected on .May JjlU. iH(^, and tlie Hawaiian tlag raised. Until that date there is no record of any jjcrson whatever nuving landed on the treeless and inhospitable rock in the middle oi the ocean. The loss of N'eeker Island as a possible mid-ocean stepping-stone for a tele- graph between Canada and .Australia was felt by some persons, and doubtless hoped by the liastern ICxtension C"ompany, to mark the demi.se of the project of a Pacific Cable. l''.(Torts were, however, immediately made by the Canadian Gov- ernment (i) to obtain a suitable island from the Hawaiian Republic, (2) to ascer- tain if it would be practicable to lay and work a cable to the least distant British island from Canada (I'anning Island). The first effort proved unsuccessful ; the second, however, establi.shed that it was still practicable to co.inect Canada and Australasia telegrai)hically, l)Ut at an increa.sed co.st. The tenders received by the (iovernment of Canada, in 1894, for establishing a cable, including its maintenance for three years, showed that : A cable by Necker Island would jst i 1,068,000 A cable by Fanning Island would cost 1,517,000 the difference being £449,000 in favour of the Necker Island route. Owing to the increa.sed cost of copi)cr and gutta percha, it will now probably cost 10 to 12 per cent more than in 1894 to manufacture cables. As a consequence, the Pacific Cable (by I'anning Island) will require fully £500,000 more capital to establish than if Necker Island had been placed under the British flag. Obviously it has not been the fault of Canada or the Australasian Colonies that Necker Island is not a British possession. Had the earnest entreaties been regarded it could easily have been secured by the Home Government in 1893 o"" in the eariy part of 1894. The Home authorities, however, adopted a different policy, and, in consequence, it will cost half a million pounds additional capital to lay the cable. Moreover, when laid, owing to an increased length of 800 miles given to the longest section, the commercial value of the whole line will be con- siderably lessened. The Eastern Extension Company's desire bemg to frustrate the laying of the Pacific Cable, naturally welcome delay, and do everything in their power to pre- vent steps being taken to further the project. That the wishes of the company have to a remarkable extent been gratified cannot be denied, for there has been great and seemingly needless delay from year to year. ml l|!ipf ' I I iX _,„ 12 As an outcome of the Ottawa Colonial Conference of 1894 it was proposed tu have a Commission apjxiintcd for the |>iirpose of iiKpiiring into all matters relatinjf to the project, and to report on the i)est means of carrying it out. After much corresponiience the proposal wa,s assented to by all the Governments con- cerned, and their representatives assembled in committee in London in June, l8(;6. They c(>m|)letcd their labours by the end of that year, and on January Sth, 1897. their report was signed. It contained information desired by the public in the United Kingdom, in Canada, in Australia, and in New Zealand. It was fre- quently asked for in the several Parliaments, but, for some unknown res^son, Parliaments and people were kept in the dark for twenty-eight months. Before the report of the committee was made public, in May, 1899, suri)rise, widespread regret and disappointment was caused when the contents of a despatch from Downing Street, of date April 26, 1899, wa,s made known. This despatch appears on page 87 of blue-hook ; its contents were referred to in the London Times of April 27, and a few days afterwards it was noticed in the Canadian press. As one who iias given some attention to the jiroject of a Pacific Cable. 1 made bold to aildress letters to the Secretary of State and the public on May 5th, 1899, and expressed the view that it was imi)ossible to believe that the een officially informed of tiie state of ' 'eling of the Governments and peoples of Canada, .Australia and .New Zealand, .irougli the High Commissioner and Agents General, and before we left Ottawa telegrams had been received indicating the willingness of the Home (iovernment to reconsider the matter. I have the honour, &c., SANDFORD FLEMING. 4, 2i