HELP FOR BRITISH SHIPPING

Press, Volume LXXII, Issue 21745, 30 March 1936, Page 11

HELP FOR BRITISH SHIPPING

HOPES OF A DIRECT

SUBSIDY

COMPETING WITH MATSOH

LINE

PRELIMINARY CONVERSATIONS IN LONDON (VKTTSD PB*SS 43SOCUTIOK -COPT»IQ*T.) (Received March 28, 2 p.m.) LONDON. March 27. , Although the conversations about the difficulties of British shipping in the Pacific have so far been of a preliminary nature, according to the

Sun-Herald News Service sufficient has emerged to indicate that » direct subsidy is now hoped for, instead of an arrangement between the Union and Matson companies under which the Australian and New Zealand service will be reserved for British ships.

The subsidy, which will enable two luxury liners, each costing £ 1,000,000, to be built to compete with the Matson vessels, will be approximately £250,000 a year. No ! definite figures have so far been even tentatively advanced, but subject to the respective Govern-

ments’' approval, the annual contributions would approximately be: United Kingdom £90,000, Canada £BO,OOO, Australia £50,000, New Zealand £25.000, Fiji £IO,OOO. Evidently there are good grounds for thinking that the Dominions will contribute approximately these amounts, provided Britain pays her share.

It is gathered that the president of the Board of Trade (Mr Walter Runciman). who hitherto has been inclined to be hesitant, is now more responsive, since the realisation that Pacific shipping vitally concerns Britain and that the ships would be built in British yards, thus benefiting industry. With New Zealand’s decision to be represented by the High Commissioner (Sir James Parr), the Australian Minister in London (Mr *

S. M. Bruce) hopes that it will now be possible to begin the Pacific Shipping Conference early in April. The British attitude is reserved, it is understood, because the Year that Government support of British lines would provoke a retaliatory increase . in the Matson Line’s subsidy. Britain is also reluctant on general principle to extend shipping subsidies to any lines. . Government assistance may be conditional on the provision of Viore modem British ships in the Pacific.

LITTIE OPXIMsIIffYJf - SYDNEY

HINT AT DISCONTINUANCE OP ROYAL MAIL LINE SYDNEY, March 28. The “Sydney Morning Herald" says: “Although the continuance of the Royal Mail line of steamers to San Francisco is not to be decided until the result of the London Con- 1 ference is known there is little optimism in local shipping circles about the possibility of relief. “It is significant that no schedule of sailing for vessels of the line has been prepared beyond July 30. Should the company decide to terminate the passenger service to San Francisco it is considered likely that a faster freight service will be inaugurated, the vessels employed carrying a limited number of passengers.” , V t . ,