TRANS-PACIFIC TRADE

Evening Post, Issue 82, 6 April 1936, Page 16

TRANS-PACIFIC TRADE

CHANGES FORESHADOWED

THE SAN FRANCISCO RUN

Possible changes in the British Royal Mail services in the Pacific were referred to in n cable dispatch from Sydney, published in "The Post' recently. It was then stated that no schedule of sailings lor vessels of the Royal Mail steamers between Australia, New Zealand, and San Francisco had been prepared beyond July 30. Under the terms of the Royal Mail contract, the company has to give three months' notice of its intention to terminate the service. The "Sydney Morning Herald" states that should it be decided to terminate the passenger service to San Francisco, it is likely that a faster freight service will be inaugurated. The Canadian-Australasian line to Vancouver would be improved by replacing the Niagara by a new 20,000----ton liner, and ultimately the Aorangi by another new ship. Efforts would then be made to further popularise this all-British route across the Pacific.

It is generally recognised that the British company cannot compete with the American line, which is sending subsidised ships into a purely British trade between British possessions. At the same time, British ships are not permitted to carry a single passenger or a ton of cargo between American ports on the same route.

The three solutions offered to the problem at present are an agreement with the United States to permit the British line to trade between Honolulu and American ports; a straightout subsidy to the British line; or an enactment preventing, the ' American, line "from trading between Suva, New Zealand, ' and l Australia. ' The " last method, states the "Herald," is most: favoured locally, but such a restrict tion.would be likely to result in Ame-, rican retaliation on. British shipping in other trades. ":

In foreshadowing ,the discontinuance of the service from Sydney to San Francisco, unless Government „. assist-, ane'e were .forthcoming, Sir Alexander Shaw, chairman of the P. and .Q. Company,■■■ said early this year - that the losses incurred by the two Empire companies in the Pacific trade were such that it had been impossible to earn a single penny for depreciation on. the ships engaged. ■

The highly subsidised foreign service had proved disastrous, and it was for the Governments of the British countries concerned to decide whether passenger. and msil traffic between Australia and America would be conducted solely by foreign.. shipping.