The Evening Star SATURDAY, DECEMBER 14, 1935. FAIR PLAY FOR BRITISH SHIPPING.

Evening Star, Issue 22212, 14 December 1935, Page 14

The Evening Star SATURDAY, DECEMBER 14, 1935. FAIR PLAY FOR BRITISH SHIPPING.

Fair play for British shipping is urgently needed. That matters have reached a crisis is indicated in statements made in. the last day or two. Subsidies by the United States Government to vessels sailing under its own flag threaten to end the great Pacific Empire services that are so closely interwoven in the economic life of Australia and New Zealand. The Hon. Alexander Shaw, chairman of the P. . and 0. Cqmpany, has announced that, in the absence pf support from the Governments concerned his company had 1 decided to withdraw the Australia-San Francisco service, which for more than half a century has been conducted by its subsidiary, the Union, Steam Ship Company of New Zealand. Simultaneously the president of the Canadian Pacific Railway and Steamship Companies indicated that the service between Canada and New Zealand and Australia would be discontinued unless the Governments of the three dominions gave “ more adequate support to the one line left in the trade.” Mr Shaw in September last issued a warning that what is now announced would happen unless definite action was taken. He declared that it was unfair to the Empire to allow timidity to rule counsels while its heritage of the sea was filched, and ,he added that against the 1 dead weight of foreign subsidies British efficiency fought in vain. To Britain the essential shipping services are stilt the mainstay, of the national existence,, and now that the crisis has actually. arrived there • should be an insistent demand for measures to secure their maintenance. The effacement of Britain’s manufacturing trade was only checked by the application of protective tariffs, • and it is evident that if the Empire’s great shipping industry is to - bo saved, prompt and effective methods must be employed.

Britain’s National Government was stirred into action last year as a result of the parlous plight of tramp shipping, but that is only one branch of the industry. It agreed to subsidise tramp shipping to the extent of £2,000,000 during 1935, and to advance £10,000,000 during the next two years on a “ scrap-and-build scheme.” Old tramp steamers, that is to say,' are to be replaced by a smaller tonnage of up-to-date new ships. The result was decidedly beneficial, and there are more British tramps in commission than at any time during the last three years. The Government also provided financial assistance' up to £6,000,000 for the completion of the Queen Mary and another new ship or ships on condition that the Ounard and White Star Companies entered into a merger to prevent wasteful competition. The £2,00Q,000 subsidy is to bp renewed in the coming year. There has never been any attempt to disguise American shipping policy, which is to challenge British supremacy at sea. America has placed an embargo on British ships trading between Honolulu and the Pacific Coast, and on the coastal trade, but the American line has the freedom of the Pacific, Under what is known as the Jones-White Act United States shipping companies set out to build 100 large liners, with the openly-avowed object of securing supremacy of the seas. A fund of £50,000,000 was established for the purpose, and the Act provided for the advance of three-quar-ters of the capital cost of the ships, at rates of interest which range from 2J to as low as 1J per cent, repayable over twenty years. The present development is an Empire matter. Britain, Canada, New Zealand, and Australia are deeply involved. There is a call for immediate consultation with quick action to follow. Mr Walter Runciman, President of the British Board of Trade, is a shipowner himself, and knows the conditions intimately, so that if he agreed to act with the Prime Ministers of the three dominions concerned practical steps could be taken to meet a position that has become intolerable.