PACIFIC SHIPPING

Manawatu Standard, Volume LVI, Issue 45, 22 January 1936, Page 11

PACIFIC SHIPPING

THREATENED BRITISH WITHDRAWAL. Mr Alexander Shaw, chairman of the Peninsular and Oriental Steam Navigation Company, in addressing shareholders at the annual meeting in London on December 11, made lengthy refernee to the danger of British shipping being ousted from the Pacific trade so far as it concerned Australia and New Zealand and North America. A summary of his speech was cabled. As an instance of the part played by British shipping in providing employment, Mr Shaw said“ When you consider that the Strathmore provided 1,350,000 ‘man days’ of useful work, and kept off the dole for eighteen months no less than 14,000 individuals, including the families of the men concerned, is it not rather remarkable that lines which are anxious to lay down vessels very similar to the Strathmore, and to use them on essential Empire services, should hithehto have had their task made impossible by the fatal unwillingness of Empire Governments to give them the least assistance in there unequal struggle with those highly subsidised foreign lines, which, in certain directions, are rapidly making it impossible for British ships to remain at sea at all. AN EXHAUSTING BURDEN. “The losses incurred by the two Empire companies concerned in the Pacific finer trade between Australia and New Zealand oil one side of the ocean, and Sail Francisco and Vancouver on tlie other, continue. The position 'is that, not only has it been impossible for a series of years to earn a single penny for depreciation on the ships carrying on these services, but the out-01-pocket losses are so enormous that no private enterprise can long bear this exhausting buruen. It inis become quite clear that if the British Government and the Governments of Canada, Australia, and New Zealand, wish to retain any service of British Empire ships at all across the Pacific, they will have to decide upon a policy of assisting thosewho, for so many years, have been upholding the British flag at such grave Joss.

“In the absence of support, it has now, as I recently was authorised to announce, been decided with great regret to withdraw altogether the service of Empire ships which, foi about halt a century, has linked up Australia and New Zealand with San Francisco. This decision is entirely due to the disastrous effects of highly subsidised foreign competition. When this British service is withdrawn, there will only be left tbe Oanadian-Australasian lino linking up Australia and the North American continent. That line is making a great struggle to keep the flag flying, but at suen enormous sacrifice that it depends entirely upon' the Governments of the Dominions concerned and upon the Government of the United Kingdom whether that last remaining British link can be kept intact. MAKING ENDS MEET.

“It is certainly not for the shipowners to attempt to dictate to the Governments concerned, hut it is their definite duty to state tbe facts for tbe consideration of the Governments of tbe United Kingdom and ot the Dominions. It is entirely for these Governments to decide whether they will allow a situation to arise where passenger and mail traffic between Australia and New Zealand and the American Continent will be conducted solely by foreign shipping. If they ao not feel tinit tney can take the necessary measures to retain a British Empire line at all, it would be fair if tliey would frankly say so, and so relieve tbe minds and pockets of those who have so long been keeping the British, flag flying at a burden of sacrifice, whien lias become unbearable. Take the year 1934. Apart altogether from the impossibility of finding a penny for depreciation, tho out-of-pocket loss of carrying on the Canadian-Australasian Line reached a huge figure. In 1933 it was not much less, while in this year, 1935, the voyage Josses being incurred, though not so great, still continue too heavy to be contemplated for long, and of course not a penny has been earned for depreciation. There can be no prospect whatever under present conditions of even making ends meet. I want to speak quite plainly about this. A great public service to the British Empire is being performed by this line year after year at a great loss.

“It is not fair tliat present conditions should be allowed to continue. It is not business and it is not common sense. Governments cannot really expect that this insufferable burden should continue to bo imposed upon a line which is a vital link of Empire. I therefore take the liberty of begging you in this room, and, if my voice can be heard at all outside, then all whom my words may reach, that without in any way opposing or embarrassing any Empire Government you should endeavour, so far as lies in your individual power, to impress upon the Administrations concerned the vital and urgent need not only of action, but of action without delay. For the problem is one whose scope stretches beyond the mere interests of any commercial concern, or the economic loss involved to this or that Dominion by abandoning its own shipping. It goes to the roots of. our Imperial position; and I am confident that the manner in which it is faced will proclaim abroad tbe value which those who govern us place upon two things precious to every British citizen —our heritage of the sea and our good name in the world.”