GERMANY IN THE PACIFIC.

Press, Volume LXIV, Issue 13109, 7 May 1908, Page 7

GERMANY IN THE PACIFIC.

pEBATE IX 'iHE REICHSTAG

ggjpplNG GRANT REDUCED,

A TRIBUTE TO AUSTRALIAN

COMPETITION.

United Press Association—By Electric Telegraph—Copyright. <B«ce ; ved May 6th, 10.47 p.m.) BERLIN, May 6. The dobato on the New Guinea mail •iibsidy led the R«icbstag **> eliminate the P«>pcs«l between German - jforGuinea and Singapore, and to red«e the proposed additional grant of £25,000 in aid of tho so-called Aus-tralian-Japanese line to £11,500. Berr Kanitz. a Conservative, urged tliat in view of the eeriousnees of the Empire's financial embarrassment, ' strict economy was imperative. Up I' 'to the present tho North German ' .t] oT ,i- 8 subventions had totalled i-o 500,000. The company was therefore scarcely a necessitous undertak--I DEerr Hermann, a Radical 'deputy from Bremen, dcalaicd that iintae the -ompany received further Government Issiitance, British shipping would benefit by the consequent decrease in efficiency on the part of the company, which ought to be subsidised so long ' - as its services were not remunerative. Herr Denfturg, head of the Colonel Department, described the Bill ac an act of colonial policy, and argued that the commercial prospects of Ger- " man New Guinea warranted the outlay Hβ emphasised the fact that " German colonies in-the South Seas imported £150,000 worth of Germaft coods annually. The prosperity of the islands would increase in the next decade when tne copra trade was fuHy developed. The company's services in the South Seas entailed a loss. It was highly important to retain regular communication between Australia and German New Gninea. Increased trade " implied increased Customs. Australian competition f!T Hie South Seas was and this competition must drive Germane out of the field, since it would seriously restrict the ■ market for German goods unkss large ' and fast German steamships -were •available to maintain communication ■with German colonies. If the German :" _*flag disappeared it would create a bad ? : impression. The subsidy "was asked for in the interests of the German : Sooth Sea Islands, feet for the cake of a paltry smn tie flag should lose ; -the respect whereto it was enticed.