The Imperial
Wireless Chain was a strategic international communications network of
powerful long range radiotelegraphy stations, created by the British
government to link the countries of the British Empire. The stations
exchanged commercial and diplomatic text message traffic transmitted at high
speed by Morse code using paper tape machines. Although the
idea was conceived prior to World War I, the United Kingdom was the last
of the world's great powers to implement an operational system. The first link in the chain, between Leafield in
Oxfordshire and Cairo, Egypt, eventually opened on 24 April 1922, with
the final link, between Australia and Canada, opening on 16 June 1928.
The Initial Scheme
Guglielmo Marconi invented
the first practical radio transmitters and receivers, and radio
began to be used for practical ship-to-shore communication around 1900. His
company, the Marconi Wireless Telegraph Company, dominated early radio. In
the period leading up to World War I, long distance radiotelegraphy became
a strategic defense technology, as it was realized that a nation without radio
could be isolated by an enemy cutting its submarine telegraph cables, as
indeed happened during the war. Starting around 1908, industrialized nations
built global networks of powerful transoceanic wireless telegraphy stations to
exchange Morse code telegram traffic with their overseas
colonies.
In 1910 the Colonial
Office received a formal proposal from the Marconi Company to
construct a series of wireless telegraphy stations to link the British Empire
within three years. While not then accepted, the Marconi proposal created
serious interest in the concept.
A dilemma faced by
Britain throughout the negotiations to establish the chain was that Britain
owned the largest network of submarine telegraph cables. The proposed stations would directly compete
with cables for a fixed amount of transoceanic telegram traffic, reducing the
revenue of the cable companies and possibly bankrupting them.
Parliament ruled out
the creation of a private monopoly to provide the service and
concluded that no government department was in a position to do so, and the
Treasury were reluctant to fund the creation of a new department. Contracting
the construction to a commercial "wireless company" was the favoured
option, and a contract was signed with Marconi's Wireless Telegraph
Company in March 1912. The government then found itself facing severe criticism
and appointed a select committee to examine the topic. After hearing evidence from the Admiralty, War
Office, India Office, and representatives from South Africa, the
committee unanimously concluded that a "chain of Imperial wireless
stations" should be established as a matter of urgency. An expert
committee also advised that Marconi were the only company with technology that
was proven to operate reliably over the distances required (in excess of 2,000
miles (3,200 km)) "if rapid installation and immediate and
trustworthy communication be desired".
After further
negotiations prompted by Treasury pressure, a modified contract was ratified by
Parliament on 8 August 1913, with 221 Members of Parliament voting in
favour, 140 against. The course of these events was disrupted somewhat by
the Marconi scandal, when it was alleged that highly placed members of
the governing Liberal party had used their knowledge of the negotiations
to indulge in insider trading in Marconi shares. The outbreak
of World War I led to the suspension of the contract by the
government. Meanwhile Germany successfully constructed its own wireless
chain before the war, at a cost equivalent to two million pounds sterling,
and was able to use it to its advantage during the conflict.
After World War I
With the end of the war
and the Dominions continuing to apply pressure on the government to
provide an "Imperial wireless system", the House of Commons agreed
in 1919 that £170,000 should be spent constructing the first two radio stations
in the chain, in Oxfordshire (at Leafield) and Egypt (in Cairo), to be
completed in early 1920 – although the link actually opened on 24 April
1922, two months after the UK declared Egypt independent.
Parliament's decision
came shortly after legal action initiated by Marconi in June 1919, claiming
£7,182,000 in damages from the British government for breach of their July
1912 contract, and in which they were awarded £590,000 by the court. The
government also commissioned the "Imperial Wireless Telegraphy
Committee" chaired by Sir Henry Norman (the Norman Committee),
which reported in 1920. The Norman Report recommended that transmitters should
have a range of 2,000 miles, which required relay stations, and that
Britain should be connected to Canada, Australia, South Africa, Egypt, India,
East Africa, Singapore, and Hong Kong. However, the report was not acted
upon. While British politicians procrastinated, Marconi constructed
stations for other nations, linking North and South America, as well as China
and Japan, in 1922. In January 1922 the British Chambers of Commerce added
their voice to the demands for action, adopting a resolution urging the
government to urgently resolve the matter, as did other organisations such
as the Empire Press Union, which claimed that the Empire was suffering
"incalculable loss" in its absence.
Under this pressure,
after the 1922 General Election, the Conservative government
commissioned the Empire Wireless Committee, chaired by Sir Robert Donald,
to "consider and advise upon the policy to be adopted as regards an
Imperial wireless service so as to protect and facilitate public
interest." Its report was presented to the Postmaster-General on 23
February 1924 The committee's recommendations were similar to those of
the Norman Committee – that any stations in Great Britain used to communicate
with the Empire should be in the hands of the state, that they should be
operated by the Post Office, and that eight high-power longwave stations
should be used, as well as land-lines. The scheme was estimated at
£500,000. At the time the committee was unaware of Marconi's 1923
experiments into shortwave radio transmissions, which offered a much
cheaper alternative – although not a commercially proven one – to high-power
long-wave transmission system.
Following the Donald
Report and discussions with the Dominions, it was decided that the
high-power Rugby longwave station (announced on 13 July 1922 by the
previous government) would be completed since it used proven technology, in
addition to which a number of shortwave "beam stations" would be
built (so called because a directional antenna concentrated the radio
transmission into a narrow directional beam). The beam stations would
communicate with those Dominions that chose the new shortwave technology.
Parliament finally approved an agreement between the Post Office and Marconi to
build beam stations to communicate with Canada, South Africa, India and
Australia, on 1 August 1924.
Commercial Impact
From when the Post
Office began operating the "Post Office Beam" services, through to
March, 31st, 1929, they had earned gross receipts of £813,100 at a cost of
£538,850, leaving a net surplus of £274,250.
Even before the final
link became operational between Australia and Canada, it was apparent that the
commercial success of the Wireless Chain was threatening the viability of
the cable telegraphy companies. An "Imperial Wireless and Cable
Conference" was therefore held in London in January 1928, with delegates
from Great Britain, the self-governing Dominions, India, the Crown Colonies and
Protectorates, to "examine the situation which arose as a result of the
competition of the Imperial Beam Wireless Services with the cable services of
various parts of the empire, to report upon it and to make recommendations with
a view to a common policy being adopted by the various governments
concerned." It concluded that the cable companies would not be able
to compete in an unrestricted market, but that the cable links remained of both
commercial and strategic value. It therefore recommended that the cable and
wireless interests of the Eastern Telegraph Company, the Eastern
Extension, Australasia and China Telegraph Company, Western Telegraph
Company and Marconi's Wireless Telegraph Company should be merged to form
a single organisation holding a monopolistic position. The merged
company would be overseen by an Imperial Advisory Committee, would purchase the
government-owned cables in the Pacific, West Indies and Atlantic, and would
also be given a lease on the beam stations for a period of 25 years, for the
sum of £250,000 per year.
The conference's
recommendations were incorporated into the Imperial Telegraphs Act 1929,
leading to the creation of two new companies on 8 April 1929; an operating
company Imperial and International Communications, in turn owned by a holding
company named Cable & Wireless Limited. In 1934 Imperial and International
Communications was renamed as Cable & Wireless Limited, with
Cable and Wireless Limited being renamed as Cable and Wireless (Holding)
Limited. From the beginning of April 1928 the beam services were operated
by the Post Office as agent for Imperial and International
Communications Limited.
Transfers of Ownership
The 1930s saw the
arrival of the Great Depression, as well as competition from the International
Telephone and Telegraph Corporation and affordable airmail. Due to such factors Cable and Wireless were
never able to earn the revenue which had been forecast, resulting in low
dividends and an inability to reduce the rates charged to customers as much as
had been expected. To ease the financial pressure, the British Government
finally decided to transfer the beam stations to Cable and Wireless, in
exchange for 2,600,000 of the 30,000,000 shares in the company, under
the provisions of the Imperial Telegraphs Act 1938. The ownership of
the beam stations was reversed in 1947, when the Labour Government
nationalised Cable and Wireless, integrating its UK assets with those of the
Post Office. By this stage, however, three of the original stations had
been closed, after the service was centralised during 1939–1940 at Dorchester
and Somerton. The longwave Rugby radio station continued to remain under
Post Office ownership throughout.
https://en.wikipedia.org/wiki/Imperial_Wireless_Chain