I wrote to you yesterday telling you that I was expecting a cable
from London on the subject.
I now send you a copy of the cable.
I am unhappy to send you such a long telegram, but I am sending it
just as I received it.
[Enclosure]
The Director-General of Programmes in the
British Ministry of Supply (Layton) to the Minister of Supply (Beaverbrook)
secret
[London, undated.]
Privo 13. Your Beava 1.2
I have seen Campbell Stuart and Sir Edward Wilshaw. The former is
not Chairman or Director of Cables and Wireless but the
officially nominated Chairman of the Imperial Communications
Advisory Committee, on which Sir Clive Baillieu was formerly
Australian representative. Wilshaw is Chairman and Managing
Director of Cables and Wireless operating companies and Managing
Director of the holding company. His appointment is also
approved by the Government.
Cables and Wireless are members of a consortium which handles
wireless telegraph traffic from Argentine, Brazil and Chile,
through local companies.
The holdings of the parties are approximately one-quarter British
(C. and W.), one-quarter American (R.C.A.), one-quarter French.
(C.G.T.S.F.) and one-quarter German (T.G.D.T.). An Italian
company also holds some shares in the Argentine and Brazilian
companies.
The Managing Director of the company is a Pole who has an office
at Electra House. The Managing Director in the Argentine is
French, in Brazil French, and in Chile British.
The parties pooled their interest by trust deed in 1921, there
being two trustees for each party. Since the war the Germans
have substituted two Swedes for their German nominees. The
position of Chairman with casting vote is at present vacant.
Wilshaw assures me that this is the first time the question of
closing traffic from South America to enemy countries has been
raised with him. He would personally be delighted to see the
traffic stopped and will co-operate in whatever line the
Government proposes.
The British and American members, however, do not hold control
and the national boards in South America would probably refuse
to act without instructions from their Governments, who have
licensed them to carry out their services.
Further, the consortium only controls three out of ten wireless
services operating from South America, apart from services
operated by governmental administration. Six other commercial
services are under I.T. & T., while E.C.A. has an
independent service in Colombia.
Also closure of circuits with enemy countries would only mean
that traffic would be diverted through Sweden, Portugal, Spain,
etc. While, therefore, Wilshaw is sure that the British and
American members of the consortium would gladly take action
under the instruction
[Page 411]
of their respective governments, this course would, in his
opinion, be less effective than action through the State
Department and the Pan American Union.
The South American governments could be approached by the U.S.
and British diplomatic representatives and instructions issued
to the companies or telegraph administrations as the case may
be, by the Ministers of Posts and Telegraphs.
Do you want me to mention the matter to the Foreign Office in
London?
Grateful thanks for your New Year message and for your good
wishes, which I very sincerely reciprocate. The past six months,
though strenuous, have been delightful. The Ministry will get
its full harvest in 1942.
