WITHDRAWAL OF SHIPS

Press, Volume LXXII, Issue 21761, 18 April 1936, Page 15

WITHDRAWAL OF SHIPS

Alternative Suggested In London VESSELS TO COMPETE WITH FOREIGNERS (UNITED PRESS ASSOCIATION—COPTEIONT.) (Received April 17, 9 a.m.) LONDON, April 16. The shipping editor of “The Times,” in stating that the CanadianAustralasian Line’s losses were heavier than the Union Line’s, says: “As an alternative to the cessation of the Vancouver service, a new lease of life could be given it by the construction of two fast ships, able to hold their own with American liners. “The cost of two 20,000-ton vessels is estimated at £2,500,000. Although American ships are built on loans advanced at low interest by the United States Government, it is belieyed that the Canadian-Austra-lasian Line would probably be able, unaided, to finance the building of the new liners, but it would not be able to meet the annual debit balances on the working of the ships.

“It is calculated that assistance to the extent of £290,000 a year would be needed to cover the cost of operation and all capital charges. The owners would be content to rely on the earnings of the vessels for any profit. “The cost would need to be met by the Dominions and Britain, where the ships would be built. It would probably be necessary to extend some financial assistance to the present service while the new ships were being constructed in order to avoid the abandonment of the service in the meantime by financial exhaustion.”

DISCUSSIONS IN LONDON

SUBSIDIES PROPOSED (Received April 17, 5.5 p.m.) LONDON, April 16. The "Daily Telegraph," referring to the Pacific shipping discussions now taking place in London between representatives of the Dominions and Britain, says the proposals include: Direct or indirect subsidies. Dominion goods shall be carried only in British ships. Government assistance to build new and faster ships. MR SAVAGE'S STATEMENT SIGNIFICANCE DISCUSSED LONDON, April 16. The statement by the Prime Minister of New Zealand (Mr Savage), that "if the Government decided to pay a subsidy to the Pacific shipping lines, it would require to exercise some control over the service," is interpreted here as meaning that he desires a continuance of the Australian and New Zealand conditions for seamen. The Australian Associated Press is assured that the Australian Ministers in London equally are anxious to maintain the trans-Pacific seamen's conditions. The British and Dominion experts' negotiations have now reached the financial stage in their effort to formulate a common AngloDominion policy. While a decision will not be hastened by the Union Line's announcement, the delegation is seeking a settlement as soon as possible. NOT APPROVED IN AUSTRALIA SYDNEY, April 17. Federal Ministers in Sydney emphasised that the withdrawal of the Union Company's ships from the San Francisco service and the cessation of the P. and O. branch service, were not the result of any action of, or plan approved Ly, the Commonwealth Government.