PACIFIC AIR SERVICE

Evening Star, Issue 22595, 12 March 1937, Page 14

PACIFIC AIR SERVICE

EARLY SURVEY FLIGHT AGREEMENT COMPLETED REGULAR SERVICES DELAYED BY MARITIME STRIKE [Per United Press Association.] AUCKLAND, March 11. The Prime Minister (Mr Savage) to-night issued a statement to the effect that the Government had decided to grant the Pan-American Airways an extension of time till the end of the present year within which to commence its transpacific services. Mr Savage said that under its agreement (made with the previous Government) the Pan-American Company was, required to commence its service not later than the first day of December, 1936, but that if by reason of unforeseen difficulties the company should be unable to commence the service by that date the time might, with the Governments consent, be extended.

The time for commencing the service, continued Mr Savage,, had just expired at the end of last year, but the Pan-American Company hadl represented to the Government that certain unforeseen, difficulties—e.g., those created by the maritime strike on the Pacific Coast of America during part of last year—had so impeded the company's efforts to commence the service or the exploratory flights preliminary to its commencement, that a start before the end of 1936 had been impossible. In view of these circumstances, the Prime Minister said, the Government had felt it might be inequitable, to refuse an cxtenson of time to ..the . PanAmerican Airways, and it had decided to give the company a period of grace until the end of the present year. The public would be glad to know that before arriving at a decision the New Zealand Government had consulted the Governments of all the members of the British Commonwealth having interests in the Pacific. The paramount consideration of the New Zealand Government was the safeguarding of British interests, potential as well as actual, in the Pacific, and effective steps had been taken to that end. The consultations with .the ' Governments, particularly of Great Britain and Australia, had been close and continuous, and the whole matter had been carefully reviewed at a conference in Wellington last September, when representatives of the three Governments—the British, Australian, and New Zealand—had been present. In consequence of the decision reached at that conference the New Zealand Government had decided to refuse certain modifications of the terms of the agreement which the Pan-American Company had asked for. The question of an extension of time based on circumstances contemplated in the original agreement was, however, separate and distinct from the queston of a modification of the agreement, and had tb be decided upon entirely different considerations. The public could rest assured;that the Government’s present action of which the Governments of Great Britain and Australia had been made aware, and with which they agreed had been arrived at only, after full consideration had been given to the interests of each of the members of the British Commonwealth concerned.

FLYING BOAT READY FOR TRIAL * WELLINGTON, March 11. "A survey flight from San Francisco to Auckland and possibly a short visit to Wellington are likely* to be made by a Pan-American Airways clipper in; the near future,” said . Mr Harold Gatty, the Pan-American Airways representative, to-night. Now that an agreement had been reached the company was making plans for an immediate survey. j “A four-engined! flying boat is now in readiness at Saii Francisco for. a trial flight to New Zealand,” said Mr Gatty. “It will be commanded by Captain Edwin Musick. If the exploratory flight demonstrates the practicability of a transpacific service between the Californian coast and New Zealand a permanent base will, be established at Auckland. The service will provide a minimum round trip every two weeks between San Francisco and Auckland.”