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11/23/43
was required that the same old rate of 58 cents a word be maintain¬ ed for the direct route while a 30 cents-a-word rate is applied between Australia and Canada, The rate on direct radio circuits from Dakar in West Africa to Montreal is 30 cents, to New York 90 cents per word.
"Another example: Only this week we succeeded in establ¬ ishing a radio communications circuit to British Guiana, in this hemisphere. Here again the existence of the circuit is limited to the duration of the war, the traffic to be handled is circumscribed and it is insisted tha.t current high rates be continued.
"Moreover, we are still unable to secure authorization for a direct press circuit between Australia and the United States, Take the case of American and Canadian reporters assigned with General MacArthur in Australia. The Canadian correspondent can cable long messages throughout Canada at British Empire press rates of less than two cents a word. An American correspondent must pay 12 to 14^ cents a word.
"To this day we have been unable to secure the establishment of direct communications between this country and Capetown, South Africa, and between this ‘country and India. Messages to Capetown or India must first be funneled through London then later retrans¬ mitted halfway around the world to Capetown or to India. The impor¬ tance of direct communication to these points especially during war time should readily be apparent, ■»■»■**
"The continuing operation of our cables is essential for reasons of capacity and security. But cable operating costs are much higher than radio. If the rates are geared to the low cost radio tne cables may go bankrupt. If rates are geared to cable costs the public loses. The need is to combine these two systems so that the public will enjoy the lowest feasible over-all rate.
"The whole history of cable operation has been one of high rates because of high costs. Consider for a moment the government's first cable message. In 1866, when ffeximilian set himself up as Emperor of Mexico, President Jonnson sent Phil Sheridan with 50,000 troops to the Texas border. It was important to let Europe know immediately that he meant business. He despatched a cable message at a fifty percent government discount, or a net cost of $23,000.
Rates in general had to move downward and as they did history has proved that traffic moved up. But still it is idle to talk about the free flow of information and intelligence at either $23,000 per message, or at the current rate of 30 cents per word between this country and its neighbors to the South, which is largely geared to Cable costs, * * * *
"To resolve the problems and achieve the practical ends must make sure that the next peace conference concerns itself with the principle of cooperation among nations and the effectuation of democratic principles to guide the practical means of establishing and operating a world communications system.
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