PACIFIC CABLE.

Waikato Times, Volume 100, Issue 16781, 26 April 1926, Page 7

PACIFIC CABLE.

CANADA 7 S ATTITUDE. HON. G. MURPHY'S STATEMENT. ,'Australian and N.Z. Gable Assa.l LONDON, April 23. Hon. Charles Murphy, Canadian Postmaster-General, in connection with the Pacific Cable dispute ami Canada's intention to withdraw from the Board, has sent to Mr Pankand, the Canadian representative a voluminous answer to the Pacific Cable Board's memorandum. Mr Murphy asserts that it is misleading and contrary to fact to say that Canada consented in January, 1921, to the Panning Island-Bamfleld duplication. That consent applied to the laying of vho cable from New Zealand to Honolulu for the purpose of linking up with the Commercial Company's cable. With regard to the statement as to the aclvisableness that the Fanning IslandHonolulu connection was modified Owing to the' prosperity of the Pacific cable, from which a large reserve was built up, Mr Murphy asserts that the reserve was achieved by allowing twothirds of Hie original debt to remain unpaid and failing lo distribute profits, winch was a violation of the purposes of Hie original Act. Had the Fanning Island-Honolulu connection been made in 1920, United Slates traffic would have increased instead of decreased as it had done through the Board's inertia. Even when carrying the United States traffic, the Fanning Island-Bamfleld cable had idle dtuly periods, so the claim was untenable that traffic would have left the cable inadequate for Empire traffic. The Board was so little concerned with the sentimental or Imperial considerations of the All-Red cable that in 1920 they recommended negotiations wilh the United Slates Government for Ihe Honolulu-New Zealand duplication. First intimation of this idea being dropped was Australia's stipulation for Ihe avoidance of Honolulu in favour of Ihe British Columbia landing. Therefore, the abandonment was not based on Ihe Hoard's considerations for an Imperial policy, lie points out when Ihe present duplication is completed it will have a 190-lettcrs per minulo greater speed than the section south of Fiji.