3219
Marconi Company
[Mr. Herbert Samuel.]
HOUSE OF COMMONS
the cost per station is considerably more than £60,000 which we pay, but I have no official confirmation of that. The Tele- funken Company, which is in very close touch with the German Government, is to receive an annual subsidy which would re- coup them for their expenditure, and, in addition, a royalty not of 10 per cent., but of 25 per cent. on the gross receipts. House must, however, remember that the gross receipts in an area such as that are The likely to be considerably less than those which we should receive in our stations. However, the fact remains that the Ger- man Government is not adopting one of the new systems which several hon. Mem- bers have faith in, but are adopting a spark system, and are, I am informed, paying more for their stations than we are paying. Now I must come to before doing so I wish to answer a com- a conclusion, but plaint which has been made that the Government have not kept the House suffi- ciently informed of the conditions and the nature of this contract, and that while the company gave the public information last March, when the preliminary tender was accepted, only recently was the contract laid on the Table. I plead guilty, with no disrespect to the House, in that respect. I could not have acted otherwise. It would have been perfectly impossible for me to impose upon the company last March any pledge of secrecy that when their pre- liminary tender had been accepted by the Government they should not be at liberty to inform the public at large of that fact. The first opportunity that arose of inform- ing the House of the nature of the contract which had been made was when the Post Office Estimates were before the House last May. Then I made a general state- ment giving to the House practically the same information as the company have given, with certain exceptions. I did not mention the period of the royalty or the conditions on which the contract had been made.
Major ARCHER-SHEE: It was stated in the Evening Standard" of the 28th of October that the agreement had been signed.
Mr. HERBERT SAMUEL: There was Do contract then.
Major ARCHER-SHEE: The "Evening Standard" of that date stated that the company had come Government.
to terms with the
Agreement.
incorrect. the company until last March.
Marconi Company Agreement.
7 AUGUST 1912
aro
نانك
Mr. HERBERT SAMUEL: It is on station along the Australian land
We did not come to terms to the wireless stations that January that we had a meeting of the Contemplated erecting a station mittee when it was decided that we sho Kong and possibly one
It was erected in New Zealand. Later it
in West Each Government will work and for the maintenance of the stations Each Government will
have further discussion about the sysica. and the erection of stations by
h its own stations handles. The re-
It is much
Admiralty. If any such statement wit erects. made last October it was quite unfound, redited with the receipts of the traffic
Major ARCHER-SHEE: It was states will not be pooled. in an article in the "Evening Standard.ler to deal with them separately in hold the Government responsible for whataphic
Mr. HERBERT SAMUEL: Yon cannuthe same principles as appears in the "Evening Staudard."
way.
tries.
The revenue will be divided the through revente between various
Press as early as October last, and the nment, which will probably amount Major ARCHER-SHEE: It got into the e sum to be spent by the British terms stated are the same as were made 120,000, will be financed from the Post
later.
time the company had made their offer,
Mr. HERBERT SAMUEL: At but certainly it had not been agreed to. that It was still under consideraton and nego- tations were proceeding. negotiations only began effectively some- where about October last year, but no In fact, the conclusion had then been reached. On
7th March the preliminary tender was accepted, and on the same day a state- ment appeared in the Press which, on the face of it, stated that it had been com- municaed by the Marconi Company. A statement was made in May in the House. I did not go into details, because I was not anxious to keep the House too long, as I am afraid I have done to-day. could not lay the complete document, and owing to the necessary time that was I taken in the solicitor's department of the Post Office and negotiations between the Departments, that contract was not con- cluded until July. system would be as follows: The British The working of the Government will erect and pay for four stations in England, and Egypt, subject to the approval of the Egyptian Govern ment; in East Africa, pretty near Nairobi: and in Singapore or in the neighbourhood of Singapore. The Indian Government will erect one station on the Western Coast or not far away from the Western Coast. The South African Government will erect one station in the neighbour- hood of Pretoria. The Australian Gov- ernment has undertaken to erect a station communicating with Singapore, but has not yet decided what contractor to em- ploy or whether to do it itself, or on what terms the station shall be erected. Tele- grams can be forwarded from the Aus-
M.
Office Vote, but the various accounts will be charged with interest and sinking fund to ccounts of the Post Office annually.
anticipated that We
shall be to effect a considerable reduction of communication. But what the ill be have not been settled, as it is rily a matter of agreement be-
the various Governments
con-
Motion for Adjournment.
3222
171
Mr. HERBERT SAMUEL: The royalty must necessarily depend upon the amount of traffic and the rates charged. It is only possible for me to give an estimate of the royalty by declaring what are the rates the Government pro- not pose to charge, and that I am in a position to do, because I have not con- sulted the other partners to the agree- ment. This contract is the ontcome of two years' work. It is the result of the best advice on these highly technical subjects at the disposal of the Government. I deeply regret that discussion has been postponed for so long; that the exigencies of public business have thrown this state- ment over to the last day of the Session, and that further delay is inevitable. The Committee of Imperial Defence as long ago as May last year expressed the opinion that the stations should be erected as speedily as possible. At the same time the Government quite recognised that on an important matter of this kind it is im- possible to press the House to a decision on the last day of the Session, when many hon. Members cannot be in attendance. Therefore the Government cannot resist, if it is so desired, a Motion for the Adjourn- ment of the consideration of this matter.
It is calculated that the cost of the whole six stations, allowing payment of capital in eighteen years, br interest and management ex- will be about,£106,000 per annum. venue must depend upon the rates and upon the amount of traffic ed, but it is impossible to form an Ste of the revenue until we have what the rates will be. If we ble to secure enough traffic to enable stations to be worked for twenty ours a day; if we are able to carry the Traffic at a speed of twenty words a minute plex; if one-third of the traffic is un- aid, that is Government traffic; if one- ard is Press traffic, on those terms this Bystem will be
remunerative-indeed, uite profitable. Of course, we are allow- for a considerable reduction of rates, if we are not able to keep the stations ployed twenty hours a day, or if any ther of these conditions are not fulfilled, en the financial results will be modified ordingly.
But even if they are not norative, the Government think it disable to erect the stations if only for
tegic reasons.
Mr. GEORGE TERRELL: Can the abe hon. Gentleman state what the esti- ated royalty will be I think he has me figures.
Lord BALCARRES: I thank the right hon. Gentleman for his statement, and in accordance with what he has just said, I beg leave to move, "That the Debate be now adjourned."
Debate adjourned; to be resumed upon Monday, 7th October.
ADJOURNMENT (WINTER SITTINGS),
Motion made and Question proposed, "That this House, at its rising this day, do adjourn until Monday, 7th October.”--- [The Prime Minister.]
BRUSSELS SUGAR Convention,
Mr. MITCHELĻ-THOMSON: I desire to take this opportunity of calling the attention of the House to the action which His Majesty's Government have intimated they are going to take before the 1st Sep- tember next with regard to the Brussels Sugar Convention. Last Thursday the Government announced they intended to give notice to terminate the Convention before 1st September. That statement was received with considerable applause from hon. Gentlemen who sit on the benches opposite. I confess, when I listened to that chorus of approval, I
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