§ 60. Mr. JOWETTasked the Postmaster-General whether the principal patent of the Marconi Company expires in April, 1914; whether, in view of the fact that the Admiralty in a letter to the Post Office have stated that even at the present time it is believed that the use of Marconi patents is not essential to the Admiralty design for a long-distance station, he will say if he regards the provision in the proposed contract with the Marconi Company that that company is to receive 10 per cent. of the gross receipts of any station so long as any Marconi patent is used in that station as a reasonable one; and whether, with such a provision in the contract, the Government reserves complete freedom in its own hands to change the system if necessary?
§ The POSTMASTER-GENERAL (Mr. Herbert Samuel)One of the principal patents of the Marconi Company will expire next year, so far as the United Kingdom is concerned, unless renewed; but other important patents will be used in connection with the Imperial stations. If it is the case, as suggested by the hon. Member, that all Marconi patents of importance will expire in the near future, then the royalties payable to the Marconi Company under the proposed agreement can also be terminated in the near future. The answer to the last part of the question is in the affirmative.
§ 61. Mr. JOWETTasked the Postmaster-General whether he has been advised as to the original cost of the plant which 1857 would have to be removed from any of the proposed Marconi stations in order to make that station free of any Marconi patents; and what proportion such cost represents of the total estimated cost of the station?
§ Mr. HERBERT SAMUELI am advised that the cost of the plant covered by Marconi patents would probably represent about 16 per cent. of the total estimated cost of each station, excluding buildings. Some additional cost might be involved in altering the aerial.
§ Lord ROBERT CECILIs that the advice given to the right hon. Gentleman by his expert advisers or does it come from the Marconi Company?
§ Mr. HERBERT SAMUELFrom my own expert advisers.
§ 62. Mr. JOWETTasked the Postmaster-General whether, in view of the fact that the Marconi Company have refused to agree to a proportionate reduction of royalties on discontinuance of the use of their patents, which was stipulated for as an essential condition by the Imperial Wireless Committee, by the Treasury, and by the Advisory Committee, he will consider whether the possibility of withholding further licences from the Marconi Company might be used as an argument to induce the Marconi Company to agree to this requirement, especially in view of the fact that the Postmaster-General on the 30th January, 1911, arbitrarily revoked the Cullercoats licence, which was the only commercial licence possessed by the Poulsen system?
§ Mr. HERBERT SAMUELI cannot agree that the facts are correctly stated in the first part of the question, the Treasury and the other Departments represented on the Imperial Wireless Committee having assented to the royalty proposals embodied in the contract, and the opinion of the Advisory Committee not being accurately quoted by the hon. Member. Nor did I arbitrarily revoke the Cullercoats licence. My prodecessor decided in 1909 that ship-and-shore wireless stations should be worked by the State, and purchased the Marconi and Lloyd's coast stations. The representatives of the Poulsen Company, who held the licence for the only remaining privately owned station of that class, were informed at that time that the licence could only be 1858 temporarily renewed. The licence was accordingly terminated in 1911, but the plant of the station was purchased by the Post Office at a price agreed upon and approximating to that asked by the vendor. I am not prepared to adopt the suggestion made by the hon. Member with respect to the Marconi Company. Apart from other considerations, it would not be likely to have the results desired, while it would involve the possibility that this country would lose the advantage of being the chief European centre of long-range wireless telegraphy, to the profit of other countries.
§ 64. Mr. JOYNSON-HICKSasked on what date Mr. Llewellyn Davies was appointed one of the solicitors to the Post Office; whether he advised the Postmaster-General in relation to the Marconi Contract; and whether up to the date of his appointment he was a partner in the firm of solicitors who acted for the "Matin" newspaper in the recent libel action?
§ Mr. HERBERT SAMUELMr. Llewellyn Davies was appointed solicitor to the Post Office on the 1st January, 1912. He was not consulted and did not advise me in relation to the negotiations prior to the signature of the Marconi Agreement of July, 1912, but the formal agreement was drawn up by him. It is the fact that the firm which he left in January, 1912, and with which he had no subsequent connection, acted for the "Matin" newspaper in the action in March last, but I fail to see the relevance of that fact.