COMMUNICATIONS

Nelson Evening Mail, Volume LXI, 4 August 1928, Page 8

COMMUNICATIONS

EMPIRE SCHEME CABLES AND WiRELESi RECOiMMENDATIONS OF CONFERENCE "GOVERNMENT'S REPLY " (By'Telegraph) (From "The. Mail's" Parliamentary Reporter). " In. the course of a statement in the House of Representatives this afternoon ih laying on the tahle a summary of the recommendations of the Imperial Wireless and Cables Conference recently held in London, the Prime Minister (the Right Hon. J. G. C'oates) intimated that the New Zealand Government has advised the Home authorities that it is prepared to approve in principle the recommendations'of the conference, believing that they offer the most promising ■ solution of Empire communications problem. /The Prime Minister reminded j the House" that the conference was set up towards the end of last year "to examine:* the situation which has arisen as a result of the competition of beam wireless with cable services, to report tHereon, and. to make recommendations with-a view to a common policy being adopted by the various Governments concerned." The conference consisted of 'representatives of .Great Britain, Canada, "the .Commonwealth of. Australia, New Zealand, .Union of South Africa, "the Irish Free State, India, and the nonself -go.vj»'rnjhg colonies and protectorates. New Zealand by the High who was assisted as ■adviser by; Mr John, lai'e manager in the' Pacific of the "Pacific Cable Board. ..THE RECOMMENDATIONS ' The full: report of the conference, said Mr Coates, /was not yet available in New Zealand, but a summary of its conclusions had been made public a few days ago, and was'< contained ih the paper being laid before the House. The recommendations of the . conference, shortly put, were as follows: ■"/.; (1), That, a merger company to be formed will acquire all the ordinary shares of, thf*. Eastern, Eastern Extension; and "Western Telegraph Conipan : ies, arid all the ordinary and preference shares and debentures (if any) of the Marconi Wireless Telegraph Company. (2) There will aiso be formed a communications company, to which ; the Cable, and -Marconi Companies will sell all their conrmunication assets in exchange J or shares. _ * (3) :The- ! Communications Company will/take over, the Pacific Cable Board's cables,'the West Indian cable and wireless system worked by the Pacific;Cable Boards,; the Imperial-. Atlantic Cables> and.the lease of the British Post Office beam service. The Communications Company; will meet the annual service of the outstanding debt on the Pacific Cable Board and will p'ay in addition a.' capital suin of £517*000 for the Pacific cables, £300,000 for the: West Indian cable, and £450,000 for the Imperial "cables. • -.. ' . .-■■'-'. (4) The board qf directors of. the merger company, the.* Communications Company, the . Cable, and > Marconi's Companies will be identical, and two .-;'-;■ of the directors, one of whom shall be t the chairman of the Communications Company, shall:be;-iipprcwe4,-by 'His Majesty's Government in Great Britain-. ■ • .(Sj;>.A/ standard , net> revenue of £1,865,000 shall be allowed to the^ornmunif»tifflis -Company and any,; excess oyer that revenue shall be.'allotted, 50 per'cent, to the: company, and 50 per v eentl to the disposal of the Advisory Ccaninittee... ■ „..' Y ~.. /.' (6] An Advisory Committee, includirig.>e§i'eseritatives of ; the Governments carioetried,; shall be set up, which shall be ;consulted by the Communications ' Company in "regard to questions of* policy, including alterations of rates, and no; : increase in • present rates shall--be made, except with the'assent of this committee.. l . r> . .'/'"- ■•■ .(7) -British control of all the com-' panie3;'rnust .be guaranteed, l and the <jbyernmehtsi may: assume, control of the systems in time of war or other national emergency. (8) The conduct of wireless telephone services in. Great.:Britain is reserved, to the Post Office in London. ' ' V." i FEATURES OF .THE, DECISIONS - McffibeK. would be able, to jm&tm for themselves in detail, said Mr Coates.: the, principles, which led the conference ] to the.adoption of the report, but he thought it desirable to call attention to a, few; of the salient features of the . decision:— . (1) Tri the first place the success of the beam wireless and its potentialities in the future have conclusively shown . that beam. wireless is able to reduce rates to srich ah extent as to render the conduct of the cables as a commercial proposition impracticable in the future unless they are preserved from direct competition by the beam wireless. (2) At the same time it is clear that the beam wireless has two serious disadvantages which would preclude its use as a sole means of communication: (i.) In the first place it is not at present an entirely reliable means of communication during all hours of the day;: and (ii.) it is not secret. (3)i It is vitally important to. every portion of the Empire that the means of inter-communication should not be controlled by foreign interests, and any solution must provide as an. essential preliminary for the retention of both cables and wireless in British hands. (4) It is therefore, both, for commercial and strategic purposes that the cables should be retained in. effective use, under British control; and the problem before the conference and-be-fore the Governments concerned was to find the best method of retaining unaffected the Empire's means of cable communication without depriving the communities of the benefits of the newer and cheaper system of communication established by the beam wireless. ' : APPROVAL IN PRINCIPLE The New Zealand Government believe, said the Prime Minister, that the solution recommended by the conference offers the most promising means of attaining this end, 'and we have advised His Majesty's Government in Great Britain that we are prepared to approve in principle the recommendations of the conference. "A similar conclusion has been- arrived at by His Majesty's Governments in Great Britain, Canada, the Commonwealth, the Union of South Africa, and the Irish Free State, and by the Government of India. It will be understood, of course, that the proposals made bythe conference have been approved in principle only, and that a considerable number of' details will remain for discussion and agreement before any final arrangement is made with the companies concerned. "FUTURE VALUE NEGLIGIBLE" "Apart from the general question of ensuring reasonable rates and means of communication, New Zealand's interest is largely concerned with, the Pacific

cables, in which it is, of course, a partner with His Majesty's Governments in Great .-Britain, Canada, and Australia,'; the share of New Zealand being oneninth. It will be remembered that the capital for this undertaking was provided by the British Government, and that the actual expenditure by New Zcahuid 'in this connection has been confined toj ilevies made from time to time to meet initial losses. The total amount, so subscribed by New Zealand is some '£69,000, and by the arrangement nowproposed it seems clear that practically 'the whole of this amount will be recouped to us. During later years the Pacific cable has more than paid its way, but its value as a profit-making asset iu the future in view of the competition of the wireless is in our opin-* ion negligible, and we are quite- content to dispose of our interest in the cable on the terms outlined." In conclusion, Air Coates said he wished tt> make it clear also that the Gov•ernment had not lost sight of the position of the employees of the Pacific Cable Board, and would take wliftt steps were possible to see. that their interests were not prejudiced should the proposed transfer take place.« \ Mr E. J. Howard (Christchurch South): "What do we get out of it?" Mr P. Fraser .(Wellington Central': "We just get out." . , '. " The "Prime Minister said that it was proposed to take a discussion on the statement later. .In reply to Mr Howard, Mr Coates said that it- was allimportant that the ' communications should rest within the Empire. He suggested that there was very ; , strong reason for "the move that had been made. If one of the companies said_ that it was going to sell out to a foreign company he thought Mr Howard would see that it was absolutely imperative that the Government representatiws should meet to retain the communications within the Empire. . t : The. Leader of the Opposition : ■ "Does not th'is mean handing .the communications over to private enterprise?" • •_ '.• With : , the .exception of one "proviso;' 'Mr ; C'oates said it did.; "•■.-■»■:':, ,ij ' Mr Howard:' "It gives Marconi a world'monopoly." ' '... Mr Coates said that the company was a British one, and there were no foreign interests. : , l ;■ '-