PACIFIC CABLES.

Grey River Argus, 8 December 1928, Page 5

PACIFIC CABLES.

“A VIRTUAL GIFT”

To Communications Coy. TORIES’ TACTICS ROUNDLY CON DEMNED BY LABOUR. (Australian & N.Z. Cable Assn). LONDON, D eember 6. In the Commons, Mr Baldwin informed Mr Maloix- that ti e Imperial Defi nee Committee had examined, the Imperial Wireless Conference’s report, which accorded with its views in respect to defence. Viscount Wolmer informed Mr WaltDr Baker that the contract would contain a clause ensuring that none of the existing cables and wireless systems would be allowed to depreciate as they are of national interest, in the event of an emergency. In the committee stage of th|? Imperial Telegraphs Bill, Mr Baker moved an amendment disallowing the Government’s approving of the sale price of thr Pacific cable, with the object of vesting approval in the Com mons. He pointed out that 3 per cent interest on outstanding debt was cheaper than the Communications Company could borrow in the op‘ n market. It was virtually a largi gif’ ’to them. Cables which cost £7,134,000 were being handed over for £2,500,000 (Labour cries, ‘‘Shame! ”) Evt n at the present market price, which was rhe i 1 Jsult of the most terrible manipulation, the value of the Marconi undertaking was not equal to the seventeen millions thbi Government proposed to let it have. The Government should insist on the Marconi value being :he talue of the shares prior to the boom, which was the result of information obtained from the Impi rial Conference.

Mi' Weldick said it was nothing but daylight robbery. The companies came in to save their skins, and not only didi so, but skinned the Government and the people. Mr Samuel said that oppositionists overlooked the fact that Britain was not the predominant partner in the State-owned cables. The Dominions held thirteen^'Eighteenths of the Pacific cable. Britain could not brush aside the wishes of partners holding controlling interests. Mr Amery, replying to Mr Ammon, admitted the Imperiat Conferences of 1911 and 1921 committed themselves to the principle of Statl owned wireless station® throughout the Empire. At a lati t conference, the Prime Minister of Australia insisted they must have full power to decide the method in which the Commonwealth should cooperate. Within a few months, Australia showed she did not desin • a State-owned system, because it gave licenses to the Australian Amalganated Wireless Company. Later, the cithl‘T Dominions committed themselves to private wireless companies.

In reply, the Postmaster-GenerpJ. said that Mr McDonald’s statement that the Labour Ministry pushed mA the beam system in the teeth of experts’ opposition was a perversion of history. The experts accurately forecasted the eff'et of the working of the beam system. It was no(t a matter of one contract. At least five main agreements were needed. It was a new doctrine that the Government should have to get permission of the House for disposal of Govcrnnn nt property. Mr Baker had not any right to impute corruption in share dealings due to official leakages. Mr Malone, regretted that the Bill dlft not stipulate th/ rates should be fivepence a word in the Empire. Mr Amer v said that Canada, one of the partners in the Pacific Cable, first suggested in, view of wireless competition with the Pacific Cable, that the Imperial Conference should be called, to consider the whole question. The Bill embodied its unanimous re port. The amendment was negatived by 211 to 128. LONDON, December 7. Tn the Commons, other amendments were rejected, and the first three clauses in the Imperial Telegraphs Bill were passed. The House then adjourned.