Sir GILBERT PARKERasked the Postmaster-General whether negotiations have been completed, or are in course of completion, for the transference of the control of the Anglo-American Telegraph and the Direct United States Cable Companies to an exclusively American financial group; and, if so, whether the Government intend taking any steps to prevent the cable communication with North America being entirely dependent upon the operations of an American combine?
§ The POSTMASTER-GENERAL (Mr. Herbert Samuel)Negotiations are understood to be in course of completion by which the practical control of the Anglo-American Cable Company's business will pass to the Western Union Cable Company of the United States of America with which the Anglo-American Company had formerly a working agreement. No such negotiations are, as far as I am aware, now being carried on with the Direct United States Cable Company. The new arrangement will not result in the cable communication with North America being entirely dependent upon the operations of an American combine.
§ Mr. TOUCHEalso asked the Postmaster-General whether his attention had 438 been called to the negotiations which have been in progress having for their object the transfer of the control of the Anglo-American Telegraph Company to an American group; and if, having regard to the experience of American methods in connection with other mergers, and to the consequences which might follow from the transfer to an American combine of the control of one, and perhaps two, of the companies on which the United Kingdom depends for cable communication with North America, the Anglo-American Company having close relations with the Direct United States Cable Company, the Government have taken or are taking steps for the protection of British interests?
§ Mr. HERBERT SAMUELMy attention has been called to the negotiations referred to by the hon. Member and I am taking steps by arranging for the Government to have certain powers of control over the rates for Transatlantic cable messages and by other measures to secure that no British interests suffer from the control of the Anglo-American Cable Company's business being in effect transferred to the Western Union Cable Company.
§ Mr. HERBERT SAMUELThe question of cable communication generally will be discussed.
§ Mr. HARRY LAWSONMay I ask whether the existing agreements concerning the British Government and the Atlantic Cable Companies are affected or broken by these changes?
§ Mr. HERBERT SAMUELNo, Sir; I do not think so—not the important ones. We are obtaining a very large measure of control for the first time over the rates to be charged upon the Atlantic cables.