Evening Post. FRIDAY, OCTOBER 23, 1936. DEFINITE ACTION

Evening Post, Volume CXXII, Issue 99, 23 October 1936, Page 8

Evening Post. FRIDAY, OCTOBER 23, 1936. DEFINITE ACTION

Though it by no means presents a complete solution of the subsidised shipping difficulty, the Protection of British Shipping Bill is welcome as a step from discussion to action. For many years the competition of foreign subsidised shipping has been felt severely by1 the British Mercantile Marine. New Zealand has had this brought home to her by definite notice that the Welling-ton-San Francisco service, of a halfcentury's running, will be discontinued at the end of this year, and by the competition of subsidised ships in the Australia-New Zealand trade. There is also a danger, definitely stated by Sir Edward Beatty, of the elimination of the Canadian-Aus-tralian-New Zealand mail service, unless help is speedily forthcoming. This would place New Zealand, and Australia, too, in the position of being entirely dependent for communication on these Pacific routes upon the ships of a foreign, albeit friendly, Power. The prospect is not one which can be contemplated with equanimity; for this question must be considered not only from the peace-time commerce side,' but with due appreciation of the necessity for a mercantile service under national control to maintain vital communications in time of war. There are two underlying causes of these competitive developments: subsidies applied to both shipconstruction and ship-operation, and discrimination to reserve a,profitable section of the trade for the, foreign competitor. For years statesmen and others in Britain and the Dominions have been debabing the subsidy issue. The British Empire, with world-wide trade built up by free competition, is extremely loath to adopt subsidies. The principle is unsound, and its acceptance by Britain might lead to a subsidising race. There are deeprooted objections also to discrimination, even though it is but an answer to foreign discrimination. Ine British Mercantile Marine, carrying a far greater proportion of foreign commerce than foreign shipping carries of ours, is in a position to lose more than is gained by world-wide application of economic nationalism doctrines to sea trade. These facts are recognised by none more clearly than by the British ship owners; but they are faced with conditions of inweasing difficulty. All they ask is re\stablishment 'of the conditions under which they built up the strength of British snipping—an open sea and no favour. But if those conditions cannot be secured there is no course open to the British Empire but to use the methods of competitors. Either that or contemplate helplessly the gradual disappearance of British shipping from the seven seas. This is unthinkable, for our.very life, as well as our commerce, depends on maintenance of our sea security. The Protection of British Shipping Bill will apply to only one phase of competition and one section of seaborne trade. It will counterbalance the long-standing reservation of American coastal and San FranciscoHonolulu trade for American ships by reserving the New Zealand-Aus-tralia trade for British lines. This relates to the Tasman. There is still the bigger Pacific difficulty. This was referred to ■' the Imperial Shipping Committee by the Governments of Britain, Canada, Australia, and New Zealand, and the committee, after holding 200 meetings, has now completed its report. No authoritative indication has been given of the recommendations which must, of course, be considered by the Governments involved. There have been rumours of a subsidy plan, but these rumours have been almost immediately discredited. New Zealand Ministers have indicated the Dominion's willingness to take part in such a scheme; but it would, of course, require to be a joint undertaking. What is needed now is that action should be taken quickly. There has, indeed, been too long delay. As "The Times" commented upon the shipping resolution of the Empire Chambers of Commerce Congress: It is surprising that the resolution regarding the maintenance of British shipping was required when the needs, especially in the Pacific, have been so convincingly demonstrated in the past. Public opinion finds difficulty in understanding why effective action was not taken long ago. The Bill submitted to the New Zealand Parliament yesterday is a first step;-towaKls efi£cdT?e.a3Jon 4 IteiS:

'encouraging because it is taken in agreement with Australia and with no objection from Great Britain. This measure of agreement, we hope, will be extended to cover action in the Pacific trade. A further reason for satisfaction is that the reservation of intercolonial trade is not to apply until any suggestions which the United States Government may desire to make have been received. This holds out a hope that we may yet approach gradually to the best and most effective solution of foreign subsidised competition, by reaching an agreement that will place all shipping services upon a fair competitive basis. But it has been demonstrated beyond doubt that before this desirable goal can be reached the nations of the British Empire must give convincing proof of their willingness and ability to act effectively in defence of their shipping. Subsidies and reservations are undesirable, but when they exist counter-measures become essential to pave the way for a return to the open competition which is best for commerce. ,