BRITISH PACIFIC SHIPPING

Press, Volume LXXIV, Issue 22338, 28 February 1938, Page 11

BRITISH PACIFIC SHIPPING

REPORTED CANADIAN STEP SIX MILLION DOLLARS APPROPRIATED? . • * i PROVISION OF MODERN "ALL RED'.' SERVICE

(TTNITED PRESS ASSOCIATION—COPYRIGHT.) (Received February 27, 8.10 p.m.) LONDON, February 26. At long last it appears that something will be done for British shipping in the Pacific. Canada is reported to be appropriating 6,000,000 dollars towards an "All Red" modernised service, indicating that a general agreement has been reached. If this is so it will not only mean the salvation of British shipping in the Pacific, but will provide a welcome fillip to British shipbuilding.

A year ago it was reported that the British Cabinet, acting on the recommendation of the Imperial Shipping Committee, had agreed to the principle of subsidising British shipping in the Pacific, provided British vessels were modernised and the Dominions concerned co-operated financially. Two liners were understood to be among the first projects, and Britain forwarded preliminary details to Australia, New Zealand, and Canada. No definite steps were lo be taken by Britain till the Dominions replied. It was stated early last year by the Parliamentary Secretary to the Board of Trade (Dr. E. L. Burgin) that nothing further could be said till agreement was reached with the Dominions.

Nothing substantial has been heard since then, except for a denial bv the Prime Minister (the Rt. Hon. M. J. Savage) that New Zealand was preventing an agreement by insisting that one of the proposed liners should be registered in New Zealand. This was on January 14 this year. Mr Savage emphasised particularly the cost of shipbuilding, and the Government's desire that the conditions on the new shins should be adequate both for crew and passengers.