PLANS DISCUSSED.

Auckland Star, Volume LXVI, Issue 227, 25 September 1935, Page 8

PLANS DISCUSSED.

MR. COATES "IN KNOW"

NO EXTENSION TO SYDNEY.

IMPERIAL COMMENT SOUGHT,

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. When the Minister of Finance, Mr. C'oatcs, passed through tho United States on his return from England recently, he discussed with the principals of rail-American Airways their plans to extend their Pacific service to New Zealand. This information was given to-day by Mr. Coates who, when informed that a number of details of the proposal had been published in tho morning newspapers, remarked that he probably knew a good deal more about the matter.

Mr. Coates confirmed the statement that full information regarding tho proposal had bccti cabled to the Imperial authorities. "We are keenly interested in the proposals being made," ho continued, "and it is a question which concerns the Empire Governments. Therefore communications are in the course of transmission at the moment concerning the Pacific scheme. Of course New Zealand is tremendously interested from two angles, both of the Pacific and the Tasnian, and in general we are anxious, isolated as we arc in the South Pacific, to improve our communications.

National Considerations. The Pan-American Airways proposal to extend its Pacific service beyond American Samoa to Auckland was explained fully to the New Zealand Government by its representative, Mr. Harold Gatty, and is regarded in official circles as extremely attractive. There are, however, some important national considerations, which explain why Mr. Gatty was unable immediately to complete an agreement with the New Zealand Government, which involves, on the Dominion's part, no financial obligations. Any British airways concern could not secure from the American Government under present conditions the landing privileges needed by Pan-Ameri-can Airways in New Zealand, and the whole question has been made familiar to New Zealanders in connection with the discussion over subsidised foreign shipping in the Pacific.

Pan-American Airways' plans for including New Zealand in its Pacific service have been communicated by cable to the British Government and inquiries in official circles here show that this had been done not because the approval of the Imperial authorities is required, but to obtain their comment on the proposal that a foreign company intends to include New Zealand in its services. "A Commercial Proposition."

Pan-American Airways does not propose to extend its route to Australia, but having an obligation under its subsidy arrangement with the American Government to fly to American Samoa, it is considered a commercial proposition to make the comparatively short extension to Auckland. Generally speaking, the whole proposal is regarded by New Zealand as quite attractive, and the requirements of the American concern from the New Zealand Government are not unreasonable, though Ministers at this stage are not prepared to express official opinions. An important aspect of the subject is its bearing on overseas mail services, particularly the arrangement under which Imperial Airways and its associated concerns will in 1037 extend the Croydon-Sydney service across the Tasman by flying boats. If the Pacific service operates prior to the Empire route it is not expected to complicate the position, as the New Zealand postal authorities, while naturally prepared to utilise any fast means of transit, would not regard the Pacific service as in any way replacing the existing contract services by steamer to San Francisco and Vancouver. Letters forwarded by the proposed Pacific air route would be subject to special charges similar to those tiow imposed on the existing Empire air service, American Airways being paid on a poundage basis by New Zealand. Reduced Air Postage.

"When the All-Empire route from New Zealand to England operates the postage will be much lower, though the ideal expressed by the British PostmasterGeneral of penny postage is not a final statement of the position, its practical bearings having not yet been decided. As for the existing annual subsidy to the 'Frisco and Vancouver steamer services, this is on r. continuing basis and not for a fixed period. It can be said definitely that the American proposals have not been considered by New Zealand in a postal sense. In fact, Mr. Gatty's consultations have been almost exclusively with Mr. Coatcs, the Minister of Customs and Finance, and he did not approach the Postmaster-General, Mr. Hamilton, while these discussions with Mr. Coates were in progress.

It was an interesting coincidence that tho Australian and New Zealand representative of Imperial Airways, Mr. A. E. Rudder, who is stationed at Sydney, should visit Wellington to discuss further plans regarding the coming of the Imperial air service and its extension to New Zealand, and he attended a conference with Cabinet to submit the latest details of the scheme.