Under the NARBA provisions, 740 was a Canadian Clear channel, with CBL (740 AM) (since transferred to FM; the frequency now is utilized by CFZM using the same technical perimeters) as the frequency's Class I-A primary station. KQW was classified as a Class II secondary station. However, the great distance between the two stations meant that, with the use of a directional antenna, KQW could apply for permission to increase its power to 50,000 watts. In the early 1940s, the San Francisco Bay area affiliate for the CBS radio network was KSFO, which, because it operated on a regional frequency, was limited to a power of 5,000 watts. CBS wanted to have a station operating at a full 50,000 watts, and an agreement was initially made for KQW and KSFO to swap frequencies — KSFO to 740 and KQW to 560 — after which KSFO would upgrade to 50,000 watts. However, this plan fell through because CBS also wanted to own the Bay Area affiliate, and the owners of KSFO were not willing to sell. Due to this rebuff, in 1942 CBS transferred its affiliation from KSFO to KQW, with an option to eventually purchase KQW. The station staff moved to a CBS-owned studio located at the Palace Hotel. For all intents and purposes, it was now a San Francisco station. However, it was still licensed to San Jose, so an announcer was posted at the transmitter site to provide the required "KQW, San Jose" legal IDs.