SHIPPING SUBSIDY?

Auckland Star, Volume LXX, Issue 28, 3 February 1939, Page 15

SHIPPING SUBSIDY?

U.S.-CAPETOWN SERVICE. budget provision expected. (From Our Own Correspondent.) JOHANNESBURG, Jallnary 0: Expectations arc entertained that the next Union Budget will iliake provision for a subsidy for ft direct mail service between the United States and South Africa. The news is current in New York business circles, and the continued good financo of tile Union add extra weight to it. Mr. Oswald Pirov,', until his recent retircnicnt as Minister of Hallways, was credited with favouring the scheme. Additional ships are to be placed on the New York-South Afriw! Mill during 1039, .-lnd it is hoped to .(.'lit the tirrto from 23 to about 18 or 19 days. Kelp in their construction is forthcoming from the United States Government. Providing much enlarged additional passenger accommodation, they will create a substantial direct tourist traffic between the two countries. Wall Street business circles' speak of a 250,000-dollar (£50,000) annual subsidy from the South African Treasury for the now service, which is about one-third of what is paid for the present Union mail contract to England. The lessons derived from the Italian lines' contract will be borne in mind, and South African interests will be adequately protected.