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7.15 & 9.30 p.k.

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Coming Shortly!

M.G.M. Picture •

THE BRIDE WORE RED

Franchot TOME - Robert YOUNG

Bee BURKE

Regnald OWEN

GLADYS GEORGE in

“MADAME X”.

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NEWS

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TEL 28473

THE CHINA MAIL, APRIL 9, 1938

EPOCH MAKING CHANGE IN EMPIRE COMMUNICATIONS: DETAILED PROPOSALS

LONDON, TO-DAY.” IMPORTANT CHANGES WHICH THE GOVERNMENT CONTEM- PLATE MAKING IN THE ARRANGEMENTS WITH CABLE AND WIRELESS LTD., INCLUDING A FAR-REACHING SCHEME FOR REDUCTION OF OVERSEAS TELEGRAPH RATES, ARE CONTAINED IN A WHITE PAPER ISSUED YESTERDAY AFTERNOON.

At the outset, reference is made to the policy agreed between the British Commonwealth Governments concerned and the com- panies in the Cable and Wireless merger in 1928-29 for main- tenance and development, under British control, of the overseas Cable and Wireless system of the Empire.

One half of any surplus over the standard revenue is to be allocatable to reduction in rates or development of the services.

The White Paper says this policy was endangered in recent years part ly because the operating company was unable to earn the expected revenue and was thus unable to, reduce tariffs In arriving at a general settlement. to the full extent hoped, and partly account has been taken of the obliga- owing to the threat of foreign com-tions of the Company in regard to petition on the Empire routes.

maintenance of cables which may be For some time, the Governments required for stragetic purposes. concerned have been engaged in re- As condition of these proposals, the viewing the position and negotiating Germany have also agreed to introduce with Cable and Wireless, as a result a far-reaching scheme for reduction of of which certain proposals emerged. overseas telegraph rates. This schemė The British Government, with the is the outcome of discussions between- general assent of the Dominions Gov-representatives of the Governments

India, are prepared to approve these Its main provision is that subject proposals subject to parliamentary auto agreement being reached with the administrations and other parties con- cerned, the rates for full trafic be- tween all different parts of the En- for pire are to be reduced so far as is financial sacrifices by the United Tracticable to an uniform basis. Kingdom and most of the oversea Governments and by the Company and its associates, but it is believed these will be offset by the benefits accruing

LAST 4 TIMES TO-DAY⚫ents and the Government of and the Company

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IT GEL MILLION DAMES, IT HAD TO BE YO! Edward G.

ROBINSON

BETTE DAVIS

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HUMPHREY BOGART

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O' MATINEES: 20c.-30c ♦ EVENINCS: 20c.-30c.-50c.-70c.

THE- OVERLAND

CHINA MAIL

PUBLISHED EVERY WEDNESDAY

contains all the general and

sporting news of the week.

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China Mail Office

3A, Wyndham Street

PROPOSED SETTLEMENT The proposed setflement calls

NEW RATES ·

This will be 1/20 per word (with

to all parties, particularly public the code rate at 102 a word) but ex- users of the Company's system.

isting rates which are already below

Main purpose of the proposed settle- this level, will not be increased.. ment is three-fold.

There will be consequential reduc First, it provides immediate and tions in certain rates for cheaper substantial reduction in Empire tele classes of traffic which are proportion- graph rates and makes it more easi-al to the full rate. ly possible for further reductions to be effected in future if the expected stimulus to traffic makes this practic- able,

It is the intention to put the new rates into effect on April 25, 1938-

To facilitate the reductions, the Governments are asked, subject to STRAIN ON FINANCES

special arrangements in certain cases, Secondly, it relieves the 'present to make reductions in terminal and strain on the finances of Cable and transit rates at present charged by Wireless by providing for an exchange them where such rates exceed of the prior charge on the Company's sterling per word *On the revenues which the British Govern-affected.

ment now hold fin the firm of a rent

al for beam wireless stations) for an interest in the equity undertaking, and.

3

G.P.O: LEASE

11

trafe

BENEFIT OF REDUCTIONS

The benefit of the reductions on Thirdly, the Governments concerned telegraphic rates to the public are asked in confirmation of this home and overseas is estimated to policy. agreed in 1928, to accord the amount to nearly £500,000 per annual. the fullest support and co-operation: In addition, special financial 23- to the Company's system.

rangements made by the United King- dom Government's new tariff will in- volve concessions of varying amounts The White Paper proceeds to set on the parts of overseas Governments, forth the arrangements approved in 1928 by which the four beam wireless stations in the United Kingdom own- ed by the General Post Office are leas ed to the Company for twenty-fre The figure of 2,500,000 for the num- years in return for a beam rental con-ber of the Company's shares to be sisting of an annual payment of fissued to the United Kingdom Gov- £250,000 and 12 per cent, of the sur-ernment is the figure negotiated plus profits earned by the Company in part of the general settlement based any year above a certain level

upon the discounted value of out- The rental was duly paid but the standing payments of beam rental profits have never sufficed for the ad-until the end of the present lease in ditional payment.

but the main burden will fall on the Company itself and its associates.

The directors- have agreed to these proposals:

1953.

It is now proposed that. Cable and GOVERNMENT SACRIFICÉ Wireless be granted a freehold of the

25

said beam wireless stations, that the Surrender of the fixed beam rental beam rental be cancelled from March 11, 1938.

In

of $250,000, payable, annually. the existing lease until 1958 in“ re- turn for sneh income as may GOVERNMENT SHARES.

ceived from dividends or the consideration hereof, it is pro-ernment's - new: holding of posed that 26 000 51 shares of Cable shares in the Company, and Wireless she be transferred to substantial sacrifice on the

Government his Majesty's Governme suaves to be revenue.

issued capital

General shall waive of

ble and Wireless - in right conceded to the operate a wireless service ed Instead of that previous- reneral: Post Office:

in

osed that the British and ↑ be?

legraph services, operat

-0. and Cable and Wire-fed

shall be co-ordinated

working

JE:

1928 down to

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