Mr. Benham told me he would consult with his firm, but that he felt confident they had come to the conclusion that no subsidy would render the Fast Atlantic Service a complete success unless the Canadian Pacific Railway Company were identified with it in the closest and most effective manner; that were that the case, he felt sure they would be ready to join and give the heartiest possible co-operation in every way to carry out the service. Mr. Benham has gone to Barrow-inFurness for the purpose of confidentially consulting his firm, and has promised to let me know the best they can do.

While it is necessary to secure a speed quite equal to that of the Teutonic and Majestic, Mr. Benham does not think it will be requisite that the vessels should have the cargo-carrying capacity so great, as they would be mainly useful in carrying mails and passengers at great speed, besides having ample provision for cold-storage for fish, meat, dairy products, poultry, fruit, etc.

I will communicate to you immediately any information I obtain on Mr. Benham's return on this subject.

Deeply impressed with the necessity of obtaining the effective co-operation of the Canadian Pacific Railway Company, for the purpose of inspiring the confidence of capitalists as to its success, and the obvious advantage of having a through service from here to China and Japan by one company, I cabled you, after seeing Mr. Benham, as follows:

66

Confidential. Long interview with Colonial Minister last night. Imperial Government will

support Fast Atlantic Service to extent £75,000, vessels similar Teutonic, but will require Canadian Government invite new tenders. Agents-General and self meet Colonial Minister Tuesday re cable. Have no doubt Government will support proposal and appoint Commission at once arrange details. Pending declaration policy of Imperial Government, think it inadvisable show Fleming's letter October 11th Agents-General. Will advise you result meeting. Shall I come out consult you about these matters? Think could render you material assistDo not make contents of this message public until further advised."

ance.

I received, a short time ago, a letter from Mr. Parmelee, covering copy of one from Mr. Sandford Fleming in regard to the cable, and asking me to communicate it to the Agents-General. I took the responsibility of withholding it until after the meeting between the Colonial Minister and the Agents-General, as I felt sure that the new proposals for the division of the financial responsibility between the Imperial Government and the Colonies would have a very disturbing effect, without doing any good. The Agents-General have no power to do anything effective in the question of this kind, except as advised by their respective Governments, and a division of opinion which probably would have arisen among them would have militated against the action which we have all been authorised to ask for from the Imperial Government in the appointment of a Commission.

I have, as you know, always resisted Mr. Fleming's proposals to have the bulk of the cost of a Pacific cable thrown upon the colonies, as I have

never entertained a doubt that, whenever Canada and the Australasian Colonies agreed to make a substantial contribution towards the construction of the cable, Her Majesty's Government would be prepared to assume a very large amount of direct responsibility; and the proposal now made by Mr. Fleming that they should only grant a loan sufficient to cover the excess of expenditure by the Fanning Island route over that of the Neckar Island route, and that the interest on that loan should be charged on the surplus earnings, would probably fall far short of the assistance which the Imperial Government will be prepared to grant.

Of course, if the Government do not agree with me in this matter I will at once place Mr. Fleming's letter before the Agents-General, although, as I have stated before, I do not see how that can in any way advance the object in view.

I need not add how greatly I am gratified that our long-continued exertions have secured favourable a result in reference to both these important questions, and I felt it my duty, under the circumstances, to communicate to you my readiness to go out to confer with you in regard to them, in the belief that I might be able to assist your deliberations, and that we might confidently anticipate the complete success of our efforts.

I need not assure you that I have given the most loyal support possible to Mr. Huddart since I was instructed to do so by your predecessor and yourself, and regret that anything should occur to interfere with his interests; but, of course, the

vitally important question is to ensure the complete success of this service and make it accomplish for Canada all that we have hoped. I am forced, therefore, reluctantly to the conclusion that to accomplish that object it will be necessary to devise some means by which a combination may be effected between the Government and the Canadian Pacific Railway Company.

The great difficulty which the company experienced arose, I believe, from the fear that from the time of undertaking this enterprise until it could go into operation, their interest might be severely jeopardised by the parties at present engaged with the Steamship communication between this country and Canada. Would it not be possible for the Government to intervene directly and assume the liability for the construction of the ships and have a contract, if necessary secret, between the Government and the Canadian Pacific Railway Company, to take the work over and become responsible for its ownership and management as soon as the service was ready to go into operation?

Of course I should be very glad if, in connection with any such change, it were found possible to utilise the services of Mr. Huddart, and promote his interests, but, of course, that is a matter entirely secondary and subsidiary to the great object of making this important work a thorough success. In the hope that means may be found to accomplish for Canada all that we have had in view, I am, etc.,

(Sgd.) CHARLES TUPPER.

THE HON. SIR MACKENZIE BOWELL, K.C.M.G.

17 Victoria Street, London, S.W.,

19th November, 1895.

MY DEAR SIR MACKENZIE BOWELL,-The meeting between the Agents-General and myself and Mr. Chamberlain took place to-day as before advised.

I stated to Mr. Chamberlain that my colleagues and myself were very much gratified at the prompt manner in which he had responded to our request that he would receive us in connection with the question of the Pacific cable, and I had invited the Agents-General of all the colonies to attend, including the representatives of the Cape and Natal, which colonies, although not directly interested, were warmly in favour of the project; that all were present except those representing South and Western Australia, who, for reasons with which he was already acquainted, did not propose to assist.

I then read the following letter which I had received from Mr. Playford, Agent-General for South Australia :

"In reply to yours of the 13th instant, I beg to say that I have written to Mr. Chamberlain, in answer to his of the 11th, informing him that my Government have by cable advised me that they are not in favour of the appointment of a Commission to consider the Pacific cable question.

"Under the circumstances I feel it would be out of place for me to attend a deputation the object of which my Government cannot support."

I also drew attention to the following statement made by Mr. Playford at the Ottawa Conference :