ACROSS TASMAN

Evening Post, Volume CXXIV, Issue 26, 30 July 1937, Page 10

ACROSS TASMAN

AIR AGREEMENT

FURTHER DETAILS

CARRIAGE OF MAILS

"The statement from Sydney by Sir Archdale Parkhill, Australian Defence Minister, regarding the trans-Tasman air service, is in conformity with the terms of the agreement arrived at by the Civil Aviation Conference between representatives of the United Kingdom, Australia, and New Zealand at Wellington, in September-October last year," said the Prime Minister (the. Et. Hon. M. J. Savage), in an interview. "Moreover, the terms were further discussed in London during the period of the Imperial Conference.

"The agreement provides for the creation of a new operating companyregistered in New Zealand to conduct the trans-Tasman air service," said Mr. Savage. "The Governments concerned shall each appoint either • Government Air Commission or an existing company, and shall constitute • new company to represent their in« terests, and each commission or company so appointed . shall nominate three directors of the operating company. In effect) this arrangement will result in each . Government being represented on the joint board of tha operating company, and the performance of the terms of the agreement shall be supervised by three Government representatives,' one to be appointed by each of the three Governments.

"It is provided that the operating company shall be licensed to operate the trans-Tasman air service, and shall be granted contracts for the carriage of mail by New Zealand, the Commonwealth of' Australia, and the United Kingdom. To enable the service to be carried on the three Governments shall make annual payments to the operating company, these payments to be subject to revision at the end of three years from the commencement of the service, and thereafter at three-yearly intervals during the continuance of the agreement

"During the first three years of operation," the Prime' Minister explained, "the three Governments concerned shall'make contributions in. these proportions: Australia 23 per cent., United Kingdom 38 per cent., and New Zealand 39 per cent.

"The revenue from the postal rates to be charged to other countries using the service shall be apportioned to the three Governments on the basis I have mentioned regarding contributions to the operating company. "Although somewhat delayed because of the necessity for three-cor-nered negotiations, it is thoroughlysatisfactory to New Zealand. , The operating company is to be under our eyes, and an important part of its services to be in close touch with the interests of the people. It is true that our part in the contributions is the largest, but then so is our share in the distribution of revenue."

Sir Archdale . Parkhill's announce ment appears on the cable page.