MARCONI CONTRACT.

Dominion, Volume 6, Issue 1789, 30 June 1913, Page 7

MARCONI CONTRACT.

1 REPUDIATION EXPECTED. By TeleerapJt—Press Association—Copyright (R«c. June 29, 5.5 p.m.) London, June 28. Lord Sheffield (Liberal), in speaking at Oastlomaine, said it was understood that the Government would acquiesce in the Marconi Company repudiating its contract for tho Imperial wireless installation, and would proceed to negotiate for a freshi contract. PROVISIONS OF* THE CONTRACT. The Marconi contract, which haa been the subject, of ,eo . much inquiry and criticism, was.i'iiiade'kst year. ."An official announcement in March, 1912, stated that Marconi's WireleM Telegraph Company had received from the British Post-niaster-General an acceptance of . its terms for the construction of all the long-dis-tance wireless stations which will be required within the next few years for the imperial scheme for establishing a chain of wireless telegraphic stations between the United Kingdom, the Mediterranean, India, Australia, and New Zealand. The company was to proceed forthwith with the construction of the following stations:—London, Egypt, Aden, Bangalore (India), Pretoria, and Singapore; and it was anticipated that the construction of others would be undertaken in the immediate future. The stations were to be operated by. the company for the account of the Government for the first six months, and thereafter by tie Government. The oompany was to receive a payment of JG60.000 for each station, exclusive of 6ite, foundations for machinery and buildings, and the buildings themselves, which, if so required, would be constructed by the company at cost price for. the account' of the Governments concerned. .. * The terms further provided that the company should receive 10 per cent, of the gross receipts of all the long-distance stations so erected for the term of the agreement, which is twenty-eight years from the date of the opening to service of the first three stations. The Government would have power to end the agreement at the expiration of eighteen years, but in that event they would cease to have the right to'use any of the company's patented processes or machinery. The contract required to be ratified by Parliament, iind the erection of the stations at Bangalore and in South Africa would be subject to the formal approval of the Indian and South African Governments. ,