Mr. C. I. Orr-Ewingasked the Assistant Postmaster-General what progress has been made in the arrangements for manufacturing the transatlantic telephone cable which was announced to this House in December, 1953.
§ Mr. GammansManufacture of both cable and repeaters has started on both sides of the Atlantic. Practically all the cable itself will be made in the United Kingdom.
I should like to take this opportunity of reporting to the House that, on account of rising costs on both sides of the Atlantic but more particularly in America, the total cost of the project may prove to. be £15 million instead of £12½ million as was forecast in December, 1953. At this increased figure the value of the equipment etc. manufactured in America will now exceed that from the United Kingdom, and we may have to make some contribution in dollars.