PACIFIC SHIPPING SERVICE

Press, Volume LXXIII, Issue 22201, 18 September 1937, Page 15

PACIFIC SHIPPING SERVICE

AUSTRALIAN DRAFT OF AGREEMENT ALLEGED DEPARTURE FROM PRINCIPLES SYDNEY, September 17. The Canberra correspondent of the "Sydney Morning Herald" states that the draft agreement for the provision of Government t financial assistance for the proposed British shipping service between Australia, New Zealand, and Canada departs materially from the principles suggested by the Imperial Shipping Committee. It is understood that the proposed agreement, details of which are being questioned by the Governments of New Zealand and Canada, will provide for contributions to the service as follows: — (1) The usual mail subsidy on the same basis as now applies between the three Dominions. (2) The obligation by the Governments of Australia, New Zealand, Canada, and Britain in respect to tho annual interest bill on the cost of the two new ships which will operate the service. (3) An undertaking by the Governments jointly to guarantee the loan which will be necessary to pay for the ships. HIGHER COSTS OF SHIPBUILDING CONSTRUCTION OF VESSELS MAY BE DELAYED (Received September 17, 11.55 p.m.) VANCOUVER, September 16. Sir Edward Beatty, president of the Canadian Pacific Railway Company, said the increased costs of shipbuilding in Britain might conceivably delay the construction of the two new vessels for the Canadian Australasian line, unless most favourable financial arrangements could be effected. He added that the costs had greatly increased after the opening of negotiations with the intention of competing with the Matson Line.