The Dominion SATURDAY, AUGUST 4, 1928. CABLES AND WIRELESS

Dominion, Volume 21, Issue 261, 4 August 1928, Page 8

The Dominion SATURDAY, AUGUST 4, 1928. CABLES AND WIRELESS

Intercommunication between all parts of the Empire is a matter of such vital importance-that; the decision regarding the merger of existing submarine cable and wireless interests must necessarily provoke comment. The broad issues of the situation were very clearly outlined in Parliament yesterday by the Prime Minister. As explained by Mr. Coates the recommendations of the Wireless and Cable Conference have been approved by Great Britain and all parts of the Empire, and it is merely the details which have now to be settled. Presumably these are minor details. To appreciate the position it must be realised that the advent of beam wireless has menaced the financial stability of the existing submarine cable services, including the Pacific Cable Sei vice, in which New Zealand is financially interested. Beam wireless can give a service at a fraction of the cost of the cable services, ,but it has - one very serious weakness. In spite of the success which has attended its development it cannot be relied on absolutely for transmission of long-distance messages under all conditions. It is, of bourse, imperative, and especially so in times of national emergency, that rapid intercommunication between all parts of the Empire should be assured. Cable communication fulfils this requirement, and therefore, for the present at least, is a necessary supplement to an Imperial beam wireless service. . But as the cable services could not carry on profitably in face of intensive wireless competition, there would be danger that this service might be lost or at least seriously weakened. This is a very unpleasant contingency to face. It would mean the loss of our reserve lines of communication. Under these circumstances it is a wise and prudent step to link up the two means of service under a common control, and thus have them both available for Empire requirements. Objection may be raised on the ground that this combination may be used to exploit the public. Examination of the conditions of the merger will show, however, that some safeguards have already been provided in this .respect, a restriction having been imposed on the transmission charges to .be made. It may. be found desirable to increase the safeguards, and presumably that is one of the details upon which the overseas Governments, including our own, will require to be fully satisfied. A second ground on which exception may and indeed already has been taken to the merger is that the control of an undertaking of such magnitude and importance should not be vested in the hands of a private company. There is something to be said for this view, but the fact cannot be ignored that private management under a central business control is likely to be more efficient than the control by a group of scattered Governments. Moreover, the Empire Governments propose to retain certain powers which entitle them to take over the services in time of emergency. There is still another and a very weightv consideration. . By following the course recommended, the Marconi Company’s wireless rights are secured for the service of the British Empire; and the control of the whole undertaking remains in British hands.