F—l

NATIONALIZATION OF THE TELECOMMUNICATIONS SYSTEMS OF THE COMMONWEALTH AND EMPIRE Reference was made in my last report to the conference of representatives of the British Commonwealth and Empire which was held in London in 1945, and as the result of which certain recommendations as to the nationalization of the telecommunications systems of the Commonwealth were accepted by all the Commonwealth Governments. So far as New Zealand is concerned, the New Zealand assets of Cable and Wireless, Ltd., have been purchased by the Post and Telegraph Department at a cost of £43,372. As an interim measure, the Post Office assumed the management of the company's activities in this country on the Ist January. This interim arrangement will continue until legislation is brought down in the United Kingdom—probably in 1949—t0 provide for the consummation of the scheme envisaged in 1945. Pending final arrangements, the staff at the Auckland cable-station has been seconded to my Department by the company. SPECIAL CABLE CIRCUIT FROM WELLINGTON TO OVERSEAS POINTS The assumption by the Post Office of the management in New Zealand of the activities of Cable and Wireless, Ltd., has enabled cablegrams lodged at Wellington and surrounding districts to be transmitted directly into the Auckland cable-station and thence overseas by means of automatic reperforation at Auckland. Hitherto, messages had been transmitted to the Auckland Chief Post-office, where they were handed over to Cable and Wireless, Ltd., for retransmission. The new circuit, which entailed the installation of special equipment at Wellington and Auckland, was brought into operation on the 23rd February. On a word basis, about one-half of the total cable traffic forwarded from New Zealand is disposed of on the new circuit, resulting in a valuable saving in transmission time. Equipment which will permit of cable traffic addressed to Wellington and district being received at Wellington direct from overseas through reperforating-apparatus. at Auckland is on order from overseas and will be brought into operation as soon as it arrives. POST OFFICE REVENUE FROM CABLEGRAMS From the Ist January, 1947, the revenue accruing to the Post Office for the acceptance, transmission, and delivery of cablegrams within New Zealand was increased as follows : cablegrams exchanged with Australia, from |d. per word to Id. per word ; with other countries of the Commonwealth and foreign countries (except the United States of America, Netherlands East Indies, and the Netherlands), from Id. to l^d.; and with the United States, Netherlands East Indies, and the Netherlands, from Id. to lfd. It is estimated that the Post Office revenue from cablegrams will benefit to the extent of about £17,000 per annum as a result of these increases. The rates charged to the public were not affected by the foregoing adjustments' RADIO-TELEGRAPH CIRCUITS WITH THE UNITED STATES Following upon the Bermuda Telecommunications Agreement (1945), which provided, inter alia, that only one of the two radio-telegraph circuits between New Zealand and the United States of America was to be retained, the circuit operated in the United States by the Mackay Radio and Telegraph Co. and in New Zealand by the Post Office was closed on the 10th January. All radio-telegraph communication with the United States is now concentrated on the circuit operated by R.C.A. Communications, Inc.

13