SERVICE TO END

Dominion, Volume 29, Issue 69, 14 December 1935, Page 11

SERVICE TO END

Wellington-Frisco Mail Ships RESULT OF FOREIGN COMPETITION “British Flag Upheld at Great Loss” (British Official Wireless.) Rugby, December 12. Tlie Peninsular and Oriental Steam Navigation Company is to withdraw the service of Empire ships, which for about half a century has linked Australia and New Zealand with San Franciscoo. . In announcing this decision yesterday the chairman of the company, the Hon. Alexander Shaw, said it was entirely due to the disastrous effect . of highly-subsidised foreign competition. If the British Government and the Governments of Canada, Australia, and New Zealand wished to retain any service of British Empire ships across the Pacific they would have to decide on a policy of assisting those who had been upholding the British flag at a grave loss, added Mr. Shaw. VANCOUVER RUN Definitely Imperilled SUBSIDY IMPERATIVE Montreal, December 12. “The steamship service between Canada and Australia and New Zealand will be discontinued unless the Governments of the three Dominions give more adequate support to the one line left in the trade, the Canadian Australasian Line,” said Sir Edward Beatty, president of the Canadian Pacific Railway and Steamship Companies. The service is definitely imperilled) by the competition of heavily subsidised United States steamships on the Australian run, Sir Edward said. The Canadian Pacific Railway Company holds a half interest in the Canadian Australasian Line. NEW ZEALAND POLICY Cabinet Will Co-operate With Australia A brief statement was made by the Prime Minister, Hon. M. J. Savage, on the cabled message that the Peninsular and Oriental Steam Navigation Company had decided to withdraw the service of Empire ships from the Pacific routes between North America and New Zealand and Australia, this decision being entirely due “to the disastrous .effect of highly-subsidised foreign competition.” Mr. Savage said: “The Government will co-operate with Australia on the question of deciding a policy. More than that cannot be said at the moment. It appears that the question has been under the consideration of the various Governments concerned’ for some time past, but no finality has been reached. The matter will be given consideration by the New Zealand Government.” UNITED ACTION Position of Extreme Gravity By Telegraph—Press Association. Palmerston North, December 13. Commenting on the decision of the P. and 0. Company to withdraw its service of Empire ships, Mr. T. R. Barrel - , chairman of the Wellington Harbour Board, said the national aspects of the question demanded delicate handling. The cabled message disclosed that the position was one of extreme gravity and magnitude, which demanded something in the nature of united action by the Dominions concerned. New Zealand and Australia could act independently under the Statute of Westminster, but isolated action, in his opinion, was not desirable' in a matter of this kind. The whole question should be seriously taken in hand, because a person in authority such as the Hon. Alexander Shaw, would not make such a statement had the position from his company’s point of view not been so grave. The position had now been reached where decided action should.be taken by the Dominions concerned with regard to the foreign subsidies complained of on the broad question of justice. The disabilities under which we have been suffering should be removed in order to obviate the results such as contemplated by tlie withdrawal of the P. and 0. boats. REGRET IN BRITAIN London, December 12. Newspapers express regret at the lion. Alexander Shaw’s announcement that in the absence of support it has been decided to withdraw the Austra-lia-San Francisco service.