PACIFIC SHIPPING.

Ashburton Guardian, Volume 56, Issue 280, 8 September 1936, Page 5

PACIFIC SHIPPING.

MEETING OF COMPETITION.

REPORT FROM AUSTRALIA.

(United Pres 9 Association —Copyright.) (Received This Day, 10.30 a.m.) CANBERRA, This Day. The Prime Minister (Mr J. A. Lyons) stated that no decision has yet been reached on the action to be taken to meet the competition by American subsidised shipping in the Pacific. Referring to the report that Mr Menzies and Dr. Earle Page had submitted recommendations to Cabinet, Mr Lyons said it was without foundation.

THE REPORTED PROPOSAL. SYDNEY, September 7. The Canberra correspondent of the “Sun” says that recommendations that Australian should co-operate with the other Governments concerned in. an effort to maintain British shipping lines in the Pacific in American services are understood to be contained in a special report submitted to the Federal Cabinet. The report was prepared by Mr R. G. Menzies and Dr Earle Page after their London conferences with representatives of the British, Canadian, New Zealand and Fijian Governments, and the shipping interests concerned. Proposals were discussed for an annual subsidy of about £250,000 to assist British ships to meet the heavily subsidised American services. It was suggested that the subsidy be contributed on the following basis:— £ Britain ... ••• 90,000 Canada ... ••• 80,000 Australia ... ... 50,000 New Zealand ... 20,000 Fiji 10,000 If a general agreement is reached for granting a subsidy it is suggested that the subsidies should lie provided in the competitive zones by the respective Governments jointly or separately, according to the nature of the services. For important services, shipping will be standardised into two classes —modern passenger liners with refrigeration space, and cargo steamers capable of a speed oT 17 knots. Shipping on all branch lines is to be co-ordinated and placed on the most efficient working basis possible. Obsolete and uneconomic shipping will be replaced by modern vessels, so that as fine a service as possible can be provided.