CABLES AND WIRELESS

Otago Witness, Issue 3877, 3 July 1928, Page 28

CABLES AND WIRELESS

REPORT OF THE CONFERENCE. NATURE OF RECOMMENDATIONS. LONDON, June 28. It is persistently reported that the Cable Conference will recommend the British, Dominion, and Indian Governments to grant the Marconi and Eastern Companies a satisfactory agreement under which the merger will be conditional on Government control in the case of national emergency.

THE PROPOSED MERGER. OTTAWA, June 27. Canada is vitally interested in and affected by the proposed merger of the' beam wireless system, the Eastern Cable Company, and the various other' communications within the Empire, according to the Postmaster-general (Mr' P. J. Veniot), and the service supervised and controlled by the Pacific Cable Board is certainly affected. Canada’s approval of the merger is dependent on the insertion in the merger agreement of certain conditions governing the rates for service by the wireless and cable lines. Complete Goyernmetnal control of all cable and radio service in the case of war is also important. The merger is expected to eliminate costly competition and to reduce the cost to treasuries for maintenance, especially the Pacific systems. AN AGREEMENT REACHED. LONDON, June 28. The Financial Times states that it merger agreement has been reached between the Government and the Marconi and cable companiesNEW AND STRIKING FEATURE. OTTAWA, June 29. A new and striking feature of the cabld merger negotiations came to light witli the notification by the Marconi Company -to the Canadian Pacific Telegraph Company that, upon its expiry in November; the ten-year contract will not be renewed, and will be replaced by an exclusive business arrangement with Canadiad National Telegraphs. The close relationship of the Marconi Company with the Eastern cable lines will result in diverting a vastly increased business td the Eastern lines, which would reach Australia and New Zealand more rapidly than over the Pacific cable. It is fearea that it will subtract heavily from the Western route. The expiry of the proposed merger lease at the end of ten years might leave Hie Pacific cable without business. This, phase is being considered in London.-