PACIFIC SHIPPING.

Gisborne Times, Volume LXXXV, Issue 12914, 16 July 1936, Page 2

PACIFIC SHIPPING.

MINISTER. OUTLINES N. Z POLICY

SUBSIDIES INEVITABLE j!

RESTRICTIONS ON ; TRADE

UNITED STATES CANNOT OBJECT.

t Press Association). ■DUNEDIN, July 15.

A eonyictiion that. the 'Solution thio Pacific shipping problem must be approach ed in a manner That did not involve any spirit of antagonism towards the Bnited States of America was expressed by tho Minister of Marine, the Hon. P. Fraser, when addressing members of the OtagoHarbour Board yesterday. “American shipping companies! 'are at a great advantage in that they have raised money (from the Government at a very- low rate of interest to hiiilcl tlieilr ships, and. that ships are running on .Government 'Subsidy',”, said the,Minister. “Unless something is done by New Zealand, Austral hi,, Canada and. Great Britain our ships ■will he driven off the Pacific. There ■ is no danger with respect to the Tasman services. “Various proposals have been put forward, and it is essential that some action should he taken to protect our 'shipping, but if we approached the United States in a, spirit of antagonism, we would los'e a great deal more than we would gain. It is in the interests of New Zealand and Australia, lor reasons I need not specify, to have tho greatest possible Friendship with tho United States. ‘.‘Honolulu is a's important to th-’s. country in, many ways as it is to the United States, Australia and ourselves would be important; hut, better still, would he a treaty of peace among the Pacific nations. CAN BE NO SPIRIT OF ANIAIOSITY “There can b? no, spirit of meanness or animosity in our policy of meeting competition from the United States,” the Minister continued. “Tho Ainjerican Government, I am sure, cannot object if we do the same, as it ha’s done with regard to shipping. At present, 'a conference dealing with the question, of Pacific shipping is taking place in England. “The Union Steam Ship Company ha,s apparently made up its mind that the Sydney-Wellington-San Francisco run. cannot, ho maintained, 'and although 1 do not know whether the last word has yet been said, the company seems definite. I understand special cargo boats with adequate cargo .a room modal ion .are to take up the running, and that if subsidies are granted tlie ships- would call at San Francisco and Honolulu. SUBSIDIES WILL NOT BE UNCONDITIONAL “The conference hi London is trying to determine the basis of subsidies'. for subsidies are inevitable if these lines are to maintained. If New Zealand enters into subsidies it will lay down the necessity for the Gov-., eminent concerned to have some say irj the type of service that is to he conducted in the programmes of ships,, accommodation for passengers and crew, fares and freights. The tune has gone when the Government handed out money unconditionally, and companies do not expect to receive subsidies unconditionally.” There was also the question of tho Tasman trade to be considered, continued the Alnister. The United States stipulated that none but American ships could cany passengers or cargo from United States ports to certain ports outside its -actual geographical boundary such as Honolulu, and it could not, therefore object is Australia- and New Zealand adopted the same .pfftitude with regard to the Tasman trade. : That was a position that might, have to be considered by Parliament, and any action would have to he taken vn the light of the necessity for preventing our shipping from being destroyed. It would not have to he in a spirit, of antagonism to the United State's, hut simply for reasons of .self-preservation.