Papers Relating to the Foreign Relations of the United States, 1923, Volume II
811.7353b W 52/100
The General Attorney for the Western Union Telegraph Company (Francis R. Stark) to the Assistant Secretary of State (Harrison)
[Received December 24.]
Dear Mr. Harrison: I have received this morning a copy of the agreement recently signed in London between Mr. Carlton, Sir John [Page 302] Pender, and the representative of the Italian Company, and I enclose a copy herewith for your information and that of the Department. You will observe that the English Company agrees to “raise no objection to the grant by the Portuguese Government to the American Company of the right to land at the Azores the cables in respect of which the American Company has already applied for landing permits.”
Sincerely,
Agreement between The Western Telegraph Company, Ltd., the Compagnia Italiana dei Cavi Telegrafici Sottomarini, and The Western Union Telegraph Company, Signed December 10, 1923
An Agreement made this tenth day of December One thousand nine hundred an twenty-three between The Western Telegraph Company Limited of London (hereinafter called “the English Company”) of the first part The Compagnia Italiana dei Cavi Telegrafici Sottomarini of Rome (hereinafter called “the Italian Company”) of the second part and The Western Union Telegraph Company of New York (hereinafter called “the American Company”) of the third part.
Whereas the English Company in association with other English Companies operates a system (hereinafter called “the English System”) of submarine telegraph cables connecting Great Britain and the Continent of Europe with South America via the Azores.
And whereas the Italian Company under concession from the Italian Government with the benefit of certain guarantees and privileges proposes to lay and operate first a submarine telegraph cable connecting Fiumicino on the Coast of Italy with the Azores touching at Malaga on the Coast of Spain (hereinafter referred to as “the Italian Azores Cable”) and secondly a submarine telegraph cable connecting Malaga with the coast of South America thus connecting Fiumicino with South America the cable or cables effecting such last mentioned connection being hereinafter referred to as “the Italian Direct Cable.”
And whereas the American Company proposes to lay and operate a submarine telegraph cable between the Azores and North America thereby facilitating telegraphic communication between Italy and North America.
And whereas the American Company is not concerned in Mediterranean South American traffic to be carried by the Italian Direct Cable.
[Page 303]And whereas the English Company is not concerned in Italian North American traffic to be carried by the Italian Azores Cable and is only interested in that cable insofar as it may affect traffic between the Mediterranean and South America.
And whereas it is expedient that the traffic relations between the Companies should be regulated in manner hereinafter mentioned.
Now it is hereby mutually agreed as follows:—
- 1.
- As and from the opening for public traffic of the Italian Azores Cable all messages handed to the Italian Company at the terminus or at any point on the Italian Azores Cable to be transmitted to any place in South America and not being directed by the senders to be transmitted by any other named route (hereinafter referred to as “unrouted South American traffic”) shall until the opening for public traffic of the Italian Direct Cable be handed by the Italian Company at the Azores or other point to be agreed for transmission to destination by the English System. The Italian Company to receive out of the total cable rates in respect of such messages the same net sum per word passing over the Italian Azores Cable as it would have received if such message had been a message passing over the said cable and destined for or originating in New York City at the rates at present in force between Italy and New York. In the event of the interruption of either the Fiumicino–Malaga section or the Malaga Azores section of the Italian Azores Cable the sum per word payable to the Italian Company in respect of such messages to be proportionately reduced according to cable mileage and further if both such sections be interrupted or unable to carry the traffic Mediterranean South American traffic shall be handed to the English System at points to be agreed upon.
- 2.
- If at any time after having been opened for public traffic the Italian Direct Cable shall be interrupted or unable to carry the traffic the Italian Company shall for a period of ten years dating from the opening of the Italian Direct Cable hand all unrouted South American traffic to the English Company at the Azores or other point to be agreed. The amount to be received by the Italian Company in respect of such messages shall be agreed between the English Company and the Italian Company or in default of agreement shall be decided by arbitration in accordance with the provisions of Clause 7 hereof.
- 3.
- The Italian Company will not directly or indirectly recommend suggest or influence the routing by senders of messages of South American origin or destination by any route other than that of the English System during any period in which pursuant to this Agreement unrouted South America traffic is to be handed to the English System at the Azores or other agreed point.
- 4.
- The Italian Company agrees in principle to a participation by the English Company in the capital to be invested by the Italian Company in that part of the Italian Company’s proposed cables which lies between Fiumicino and Malaga the terms and conditions of such participation to be arranged to the mutual satisfaction of the Italian Company and the English Company with the approval so far as necessary of the Italian Government. The Italian Company undertakes that any funds so to be provided by the English Company shall be exclusively devoted towards meeting the cost of manufacturing and laying the cable from Fiumicino to Malaga.
- 5.
- The American Company has agreed to subscribe for a part of an issue of Debentures to be issued by the Italian Company and the Italian Company undertake that any funds so to be provided by the American Company shall be exclusively devoted towards meeting the cost of manufacturing and laying the cable from Malaga to the Azores.
- 6.
- The English Company will in consideration of the foregoing engagements raise no objection to the grant by the Portuguese Government to the American Company of the right to land at the Azores the cables in respect of which the American Company has already applied for landing permits.
- 7.
- This Agreement shall be read and construed in accordance with the principles of the law of Great Britain and in the event of any difference arising in respect of the construction of this Agreement or the rights hereunder of any of the parties hereto such difference shall be referred to the arbitrament of a single arbitrator under the provisions of the British Arbitration Act or any statutory amendment thereof such single arbitrator to be appointed by Agreement between the parties between whom the difference arises and failing agreement by the English Attorney General for the time being for all of which purposes the parties hereto submit to the jurisdiction of the Courts of England.
In witness whereof the Companies parties hereto represented respectively by their duly authorised officers have hereunto set their hands the day and year first above written.
Chairman.
For Compagnia Italiana dei Cavi Telegrafici Sottomarini,
Attorney for the Company.
For The Western Union Telegraph Company,
Vice President.