POLICY IN PACIFIC

Evening Post, Volume CXXII, Issue 13, 15 July 1936, Page 12

POLICY IN PACIFIC

SHIPPING SERVICES

AN AMTCCABLE SOLUTION

ESSENTIAL

STATE; ASSISTANCE?

(J3> Tolcj:raph.—l'i'CßS Association.) DUNEDIN, July 14. A ccnviclaon that a solution of the Pacific snipping problem must be approached in a manner that did not in/olve any spirit of antagonism towards the, United Slates of America ivas expressed by the Minister of Marine (tin; Hon. P. Fraser) when addressing members ol the Otago Haroour Board, today.

"American shipping companies are at a great advantage in that they have raisell money.from the Government at a 'very low rate of interest to build their ships and that the ships are running on Government subsidy," said the Minister, "and unless something is diane by New Zealand, Australia, Canada, and Great :Britain our ships 'willi be driven off the Pacific. There is aj so a danger with respect to the Tasman services. Various proposals have fceen put forward and it is essential tl »at some action should be taken to jirotect our shipping, but if we approached the United States in a spirit of antagonism we would lose a great deal' more than we would gain. It is in ttje interests of New Zealand and Australia, for reasons I need not specify, to have the greatest possible friendship) with the United States. Honolulu'is as important to this country in mal ly ways as it is to the United States. li| certain combinations of nations of Uae world took place, friendship' between the United States, Australia, and I ourselves would be important, but Vjetter still would be a treaty of peace'among the Pacific nations. BiISIS OF SUBSIDIES. "There jean be no spirit of meanness or animosity in our policy of meeting competition from the United States" the Minis ter continued. "The American Government, I am sure, cannot object. if; we do the same, as it has done witlv. regard to shipping. At present a conference dealing with the question jof Pacific shipping is talcing place in: England. The Union Steam Ship Company has apparently made up its mind that the Sydney-Welling-ton-San Francisco run cannot be maintained, and- although I- do not know wli ether the last word has yet been sai«sTi, the company seems definite. I understand that special cargo boats wi/.h adequate cargo accommodation at-e to take up the running, and that if subsidies are granted the ships woi ild call at San Francisco and Honolulu., The conference in London is trying to determine the basis of subsidies, for subsidies are inevitable if these ] ines are to be maintained. If New Zealand enters into subsidies it will lay:, down the necessity for the Governm erit concerned to have some say in the type of s'ervise that is to be conducted, in the programmes of a ship's ao commodation for passengers and crevr, and fares and freights. The time haii gone when a Government handed out money unconditionally, and the companies do not expect to receive "•subsidies unconditionally." 'GASMAN SERVICES. There was also the question of the Tasman trade to be considered, continued tlie Minister. The. United States stipulate/3 that none but American ships could carry passengers or cargo from Utaited .States • ports to certain ports omtside its actual geographical boundaries, such as Honolulu,, and it 'could net therefore object if Australia and Nei.v Zealand adopted the same attitude with regard to the Tasman trade, tfhat was a position that might have to be : considered by Parliament, and ana* action would have to be taken iij l the light of the necessity for preventing our shipping from being destroyed. It would not have to be done in> a spirit "of antagonism to the United;States, but,simply for reasons of self-preservation.