SHIP SUBSIDIES.

Auckland Star, Volume LXIV, Issue 83, 8 April 1933, Page 7

SHIP SUBSIDIES.

AMERICAN POLICY.

REPLY TO BRITISH PROTESTS.

VOTE PASSED IN FUJ.E.

One of the important Empire subjects likely to be discussed at the World Economic Conference is shipping. It was recently estimated that 744 British vessels were laid up and thousands of workers idle. Protests against the heavy shipping subsidies granted by the United States, Japan, Italy and France have been voiced, as they enable foreign shipping to compete unfairly with the British ships. , . The controversy between Great Britain and the United States on the question of shipping subsidies has reached the stasre where American public opinion is beiiig stirred into opposing any reduction of Federal subsidies (wrote the New York correspondent of the Melbourne "Herald," on March 2). It is a matter for regret thai the protest of the British Chamber of Shipping and the British Government's pronouncement of its determination to protect its shipping against American subsidies were made just oil the eve of Congress dealing with the Estimates. It is certain that, responding to tho demand for economy that was sweeping the country, the shipping subsidies would have been materially reduced. Congress, harangued by those who claimed that Britain was seeking international agreements to the detriment of American shipping, felt it was on its defence, and passed the vote in full! Not in seven years' residence in North America have we heard such an antiBritish outburst, which was fanned to fever heat by the reaction to Mr. Neville Chamberlain's "no concessions" war debt ultimatum at Leeds. Senator Copeland, who led the attack, said, even now, only one-third of American foreign trade was carried in American bottoms; on the other hand, Britain carries 60 per cent of her own foreign trade in British vessels," and 45 per cent of the total foreign trade of the entire world. Too Controversial? The American delegates to the Geneva Economic Committee declared that the subject was so controversial that little could be accomplished by its discussion. Criticism of subsidies, they averred, would not be confined to American snipping but would extend to the shipping of France and many other Powers, especially those which operated lines on the North Atlantic, which had received Government aid, in one form or another. Many of the countries, according to shipping experts, were less frank than the United States, and did not directly finance shipbuilding. They believe that nothing can be done at the London Economic Conference, which will alter existing contracts and agreements, and that discussion cannot do more than force an agreement upon some principles which may be adhered to subsequently in tho formulating of international shipping policy. In this newest outburst, Americans are being told that, when European nations build North Atlantic liners, they build them for Americans, as, without their patronage, they could not be operated commercially. More than 72 per cent of the Americans who went abroad last year actually travelled in "foreign" vessels, and Americans hold shares in the French Line, the North German Lloyd and the Hansa Steamship Line. Americans travel by the Cunard Line to Havana and the West Indies in the peak of the season. "Imagine the howl that would go up from Great Britain," says one writer, "if an American company should put its vessels into a purely British Continental service at the peak of the season!"

Six Hundred U.S. Vessels. By Federal law, known as the JonesWhite Act of 1928, shipowners may borrow 75 per cent of the cost of construction at a low rate of interest for twentyyears—the average life of a ship. Mail contracts for ten-year periods are available. Under this Act, 175,000,000 dollars have been expended for the construction of 42 American ships, totalling 500,000 tons, while 250,000 tons of old vessels have been reconditioned. There are now 600 American vessels, aggregating 3,500,000 tons, operating between 60 American ports in North America and 550 foreign ports. Meanwhile the whole question of the competition of subsidised vessels looks like being a very awkward one for the experts to handle—and one that needs caution. Its importance to Britain and the Dominions is obvious.