[Enclosure]
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.
For The Western Telegraph Company Limited,
J. Denison Pender
,
Chairman.
For Compagnia Italiana dei Cavi
Telegrafici Sottomarini,
Richard T.
Durran
,
Attorney for the
Company.
For The Western Union Telegraph
Company,
S. J.
Goddard
,
Vice
President.
