OTTAWA, November 15, 1899. The Right Honourable Sir WILFRID LAURIER, Prime Minister of Canada. SIR - In the report submitted by me of date September 5th, on my recent mission to England, and in my letter to the Honourable Mr. Tarte dated July 1st, appended thereto, I referred to the persistent efforts of the Eastern Extension Company to frustrate 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 being taken by that company in Australia to defeat the project. My own name is used in discussions in the press of the southern colonies, and it is due to myself that I should submit some explanations. At the same time 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 it advisable, transmit my explanations for the information of the Governments concerned. The communication received through the Department of Trade and Commerce goes to show that the Eastern Extension Company has made a formal offer to the Australian Government of very great importance, and the offer made is supported very strongly by the Postmaster General of South Australia. Sir Charles Todd. Moreover, every effort is being made through the press to influence public opinion in its favour. The offer is practically to substitute for the Pacific Cable a cable across the Indian Ocean from Australia to South Africa, where a connection would be formed with the lines to England. To make the proposal as attractive as possible, the company offer at once to reduce rates from the present minimum charge of 4s. pd. per word to a uniform charge of 4s. per word, and they offer to make further reductions as traffic increases. The company ask no subsidy or guarantee, but they ask the privilege
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