AIR SERVICE

Hokitika Guardian, 12 August 1937, Page 5

AIR SERVICE

CRITICAL POSITION. *

(United Press Association —By Electric Telegraph—Copyright).

WASHINGTON, August 10.

The Australian Associated Press learns, authoritatively, that the negotiations between the New Zealand Government and the Pan-American Airways regarding a Pacific service are now at a most critical stage. Tt is feared that they may be broken off.

It is understood that the issue at stake is whether British Imperial Airways should be allowed to maintain virtually a competitive New ZealandNorth American service to run along with the Pan-American Airways service.

It is believed that the New Zealand Government is insisting that the Imperial Airways Co. .should he given landing rights in Honolulu and in San Francisco, thereby making it possible for the Imperial Airways to carry New Zealand and Australian passengers who may be desirous of crossing the United States.

The Imperial -Airways Co. terminal is Vancouver.

The Imperial Airways is believed to be offering a plan whereby passengers could use tickets interohangablv for both of the lines.

The negotiations have been proceeding between the United States State Department, the British Embassy, the Pan-American Airways, and the Imperial Airways. They have reached a point where the Pan-American Company's principal negotiator will probably proceed to Now Zealand in a few days in an effort to secure a closer approximation to the New Zealand Government’s original promises