British Shipping in the Pacific

Press, Volume LXXIII, Issue 22200, 17 September 1937, Page 10

British Shipping in the Pacific

The problem of safeguarding British shipping in the Pacific is; like most Imperial problems, shrouded in a mist of vagueness and uncertainty. Months before the last Imperial Conference met, the governments concerned had agreed in general terms that British shipping could not be allowed to be driven off the main Pacific routes by subsidised competition and that, if necessary, British lines operating in the Pacific Would be protected by subsidies. At the same time, the more technical aspects of the problem were fully investigated by the Imperial Shipping Committee. The ground was thus prepared for a final settlement of the question by the Imperial Conference. But it would appear from the statements made by Mr Lyons and Mr Savage yesterday that in fact there has been no real progress. Mr Lyons announces, not for the first time, that Australia is ready to enter into an agreement for subsidising British shipping in the Pacific; but he adds there is no possibility of introducing the necessary legislation until after the Federal elections. This has been interpreted by the Australian press as meaning that obstacles have been raised by the Canadian and New Zealand Governments, Mr Savage, in a characteristically vague and rambling statement, scouts this suggestion and calls the Australian Prime Minister’s excuse “not an unreasonable one.” But since shipping subsidies have never been a political issue and since there has been ample time to draft a bill, it is difficult to escape the conclusion that in fact there is some hitch. Mr Savage, indeed, admits as much when he says that his Government must be satisfied that wages and conditions of labour on subsidised ships are satisfactory and that this is “ the only “ substantial thing in the way.” It is reasonable to ask that in this matter the Government should be frank and explicit. There is a possibility that rising freight rates, the imminent possibility of a world shortage of tonnage, and the possible easing off of Japanese competition as a result of the war in China have made the problem less urgent than it was a few months ago. If this is the case, the public is entitled to be told so, since as far as it knows from official sources there is still an imminent danger of British shipping being driven off some of the most important trade routes in the Pacific.