SLOW TO ACT.

Auckland Star, Volume LXVI, Issue 250, 22 October 1935, Page 12

SLOW TO ACT.

GOVERNMENT OF N.Z. BY AIR TO AMERICA PLAN. OPPORTUNITY MAY BE LOST. Concern was expressed by Auckland business men this morning that, through the dilatoriness of the Government, the Dominion might lose tho chance of being included in the scheme of Pacific air services as propounded by Pan-Pacific Airways. Impatiencc at the delay of the Government was the tenor of a cable received yesterday by tho New Zealand attorney for the company, Mr. Lisle Alderton. In view of the position regarding the obtaining of aircraft and a subsidy in America, it would be necessary to withdraw the offer unless the New Zealand Government was interested and would authorise the scheme without delay, the cable stated. The contents were communicated to the Government. A telegram was sent to the Minister of Transport, Mr. Coates, by the president of the Auckland Chamber of Commerce, Mr. Gainor Jackson, pointing out the views of the American company. Last evening Mr. Coates informed Mr. Jackson in a telegram that tho matter was not merely one for the New Zealand Gov rnmenf. Other Governments were being consulted, and the New Zealand Government was making every effort to conclude a satisfactory agreement. The Gist Of The Proposals.

As set out first of all in September the proposal of Pan-Pacific Airways is to establish a weekly air service between San Francisco and Auckland, via Honolulu, Kingman Beef and Pago Pago. Negotiations with the Government were carried out by Mr. Harold Gatty, technical advisor to tho company.

The latest developments from Wellington are that the New Zealand Government is consulting the Imperial Government and the Governments of Canada and Australia. It is understood that the question of reciprocity has been raised, that the United States Government should grant the right for Empire aviation interests to land in American territory. It was also agreed that the Government should have the final right to cancel the license to tho American company should a British company become actively interested. Details of the proposed agreement between the American company and the New Zealand Government show that the company does not ask for much in return for the right to establish the service. The company would have the right to fly over and land in New Zealand territory and mandates; but without special permission would not have the right to carry local passengers, mails, or express matter from point to point. The company would have the right of assigning its rights to any company in which it owned the major part of the capital, but could not make other assignments without permission from the New Zealand Government.

Conditions Of Use Of Wireless. The use of landing facilities on land or water, of wireless and other communications controlled by the Government would be granted on the same conditions as for any other company domiciled in New Zealand. It would also be allowed to have land for the erection of facilities and to construct and operate its own stations for' wireless direction finding. A license for the operation of a radio beacon service would be granted under certain conditions. The beacon beam was to be made available to other than company aircraft by mutual agreement, or in the final instance by the Minister of Telegraphs. The location was to be approved by the P. and T. Department of New Zealand. The license was subject to cancellation. without compensation, provid-

ing other adequate facilities were made available.

The agreement also made provision for 'the use of commercial wireless for communication with the company's own aircraft flying between New Zealand and Samoa, with Pago Pago. All public correspondence connected with the service would be handled by the P. and T. Department, which Department would also control the wave length to be used. During the term of the agreement the company would be exempt from Customs duties and taxes on its aircraft and accessories, .together with petroleum products and other materials imported. The Government would guarantee that no taxes or restrictions which did not apply to other companies domiciled in New Zealand would be imposed on the company. What Business Men Think.

| Business men in Auckland express concern lest a valuable opportunity be lost, [and they emphasise the need for impressing this on the Government. The view is taken that every chance of connecting New Zealand more closely with the outer world should be grasped. The Mayor, Mr. Ernest Davis, speaking from Rotorua, said that conflict between foreign and Imperial interests did not arise. There was room for both ser-

vices, the American from the Pacific side and the British from Australia.

The suggestion that New Zealand was being unduly influenced by some other interests in England was made by Mr. Spencer R. Mason, president of the Auckland Aero Club. He said there was a chance of missing the benefits of the American proposals owing to the delay; and it would be many years before such another opportunity of being linked to America by air presented itself.