CABLE MERGER.

Manawatu Standard, Volume XLIX, Issue 230, 28 August 1929, Page 6

CABLE MERGER.

BILL FOR RATIFICATION. DEBATE IN PARLIAMENT. (By Telegraph.—Special to Standard.) WELLINGTON, Aug. 27. A bill ratifying the cable merger was introduced in the House of Representatives to-day and rekd a first time. Rt. Hon. J. G. Coates asked whether the bill dealt with or confirmed the terms that New Zealand had agreed to at the time of the merger, and if any provision had been made for employees engaged in the Pacific Cable Company in New Zealand. Mr H. E. Holland asked what would be the consequences if there was a refusal to sanction the proposals. _lt seemed to him that the course being taken now should have been taken before New Zealand was committed to the merger. Sir Joseph Ward said that the position was that the merger was agreed to by all the parties interested. _ Personally he was not in favour of it, but it was reported to the House too late to enable anything to be done. The British Government and the other Governments had agreed to it, and we had no say at all. There was no use looking back now, but the British Government, having control of the beam system, could have compelled Signor Marconi to join in with them. A great mistake had been made. The Pacific cable was the first all-British cable, and the arrangement was made without our Parliament having a chance to consider it. He regretted that there had been no opportunity of putting on record our protest against the sale of the Pacific cable because now we would never get such a chance again. Mr Coates said that there was another aspect of the case, and the Prime Minister had not put the whole story. There had been an extraordinary falling off in the earnings of both companies, and it had become absolutely necessary that steps should be taken by the British Government, the Canadian Government, the Commonwealth and New Zealand to save themselves from loss. Heavy losses were’ staring them in the face, and in the event of war it was necessary to convert the system in the interests of the Empire. The recommendations of all were in the direction of the merger New Zealand’s position was the same as that of the others; it could -not stand up to the losses of the Pacific cable. There was no use in a protest from New Zealand alone ; it could not carry the burden of the Pacific Cable Company. Sir Joseph Ward said he differed from the view that the weight would have been too great for this country if the others had agreed and we had not. The British Government had control of the Pacific cable and also of the. beam system; it had control of the position. Mr Holland said he agreed with the Prime Minister. A wrong thing had been done. One of the most sinister men in England had been engaged by this combination. An hon. member: Who is that? Mr Hollnnd : Lord Birkenhead—“Galloper Smith.” The bill was introduced and read a first time.