§ Major ARCHER-SHEEasked whether, in view of the fact that the whole of the 2142 Atlantic cable system has now passed under the control of a foreign corporation and the risk of interruption of communications resulting therefrom in time of war, it was the intention of the Government to proceed with the scheme of a State-owned Atlantic cable?
§ Mr. CROFTasked the Postmaster-General whether, under the existing arrangement, the whole cable system between the United Kingdom and the Dominion of Canada was under the control of the United States; and what steps he proposed to take to establish an all-British cable to avoid this strategic disadvantage?
§ Mr. HERBERT SAMUELThere are thirteen cables from the United Kingdom to North America, and all of them land on Canadian or Newfoundland territory. This fact should be borne in mind in connection with the strategic consideration raised by the hon. Member's question. The land lines both in Canada and in the United States are in the hands, not of the Governments, but of private companies, and there is no guarantee under existing conditions that a State-owned cable, if laid, would be able to establish connections with the land lines in those countries. On this side the British Post Office would not be able to supply the cable with much traffic, as the Anglo-American Cable Company is entitled, under an old agreement, to receive all transatlantic cablegrams which are not ordered by the sender to be transmitted by a specified route. The business of the Pacific Cable Board is at present far from sufficient to justify laying an additional cable across the Atlantic in order to carry its traffic alone. The hon. Member's question is inaccurate in that it suggests that all the transatlantic cable system is now under the control of one corporation. The Commercial Cable Company, with five cables, is not a party to the combination recently formed. I have established, as a condition of the renewal or transfer of landing licences, Government control of the rates charged by some of the cable companies, and shall extend this control as the licences of others fall to be renewed. Where the control applies rates cannot be raised without the consent of the Government, and may be reduced on the demand of the Government. The companies have a right of appeal to the Railway and Canal Commissioners if the equity of any proposed reduction is disputed. In view of all these circumstances, and of the substantial reductions now 2143 being made in many of the transatlantic rates, His Majesty's Government has no present intention of embarking on the large capital expenditure and annual commitments which would be involved in laying a State-owned cable.
§ Major ARCHER-SHEEIs the right hon. Gentleman aware that one transcontinental line in Canada, as regards telegraphic facilities, is not under the control of the American Telegraph and Telephone Company? Now is the opportunity, if I might respectfully suggest it, for us to make our arrangements with them as regards through traffic for the Pacific cable.
§ Mr. HERBERT SAMUELThe Pacific Cable Board has already leased a wire of its own from Montreal to Vancouver.
§ Mr. CROFTAre we to understand that the right hon. Gentleman has reasonable expectation that in time of war he will be able to get complete control?
§ Mr. HERBERT SAMUELWe have no anxiety about the position in time of war.
§ Major ARCHER-SHEEasked if any estimate had been prepared of the cost of a State-owned Atlantic cable between Ireland and Newfoundland?
§ Mr. HERBERT SAMUELNo recent estimate has been prepared, but I may state, for the hon. Member's information, that the cost of one of the cables laid last year between this country and Newfoundland was about £450,000.
§ Major ARCHER-SHEEDid not the right hon. Gentleman state at the Imperial Conference that the annual cost would be about £50,000, and did not New Zealand offer to pay about £12,000 per annum?
§ Mr. HERBERT SAMUELThe partners on the Pacific Cable Board were willing to share the cost of a Pacific cable and an Atlantic cable if one were laid.