SHIPPING POLICY

Manawatu Standard, Volume LVI, Issue 201, 15 July 1936, Page 5

SHIPPING POLICY

AMERICAN COMPETITION. j SUBSIDIES INEVITABLE. ; Per Press Association. DUNEDIN', July 14. J'lic conviction that a solution of r the Pacific shipping problem must bo | aproacbcd in a manner that did not involve anv spirit of antagonism toward the United States of America was expressed by the Minister of Marino (lion. P. Fraser) when addressing members of the Otago Harbour Board to-day. ‘'American shipping companies arc at a great advantage in that they j have raised money from the Govern- j nient at a very low rate of interest to build their ships and that the ships arc running on a Government subsidy,” said the Minister; “and unless something is done by New Zealand, Australia, Canada and Great Britain our ships will be driven off the Pacific. There is also a danger with respect to the Tasman services. Various proposals have been put forward and it is essential that some action should be taken to protect our shipping, but if wo approached the United States in a spirit of antagonism wo would lose a great deal more than we would gain. It is in the interests of Now Zealand and Australia for reasons I need not specify to have the greatest possible friendship with the United States. Honolulu is as important to this country in many ways as it is to the United States. If certain combinations of nations of the world took place, friendship between the United States, Australia, and ourselves would bo important, but better still would bo a treaty of peace among the Pacific nations.

“There can be no spirit of meanness or animosity in our policy of meeting competition from the . United States,” the Minister continued. “The American Government, 1 am sure, cannot object if we do the same as they have done with regard to shipping. At present a conference dealing with the question Pacific shipping is taking place in England. The Union Steam Ship Company has apparently made up its mind that the Sydney-Wellington-San Francisco run cannot bo maintained, and although I do not know whether the last word has yet been said, the company seems definite 1 understand that special cargo' boats with adequate cargo accommodation are to take up the running, and that if subsidies were granted the ships would call at San Francisco and Honolulu. The conference in London, is trying to determine the basis of subsidies, lor subsidies are inevitable if these lines are to bo maintained. If New Zealand enters into subsidies it will lay down the necessity for the Government concerned to have some say in the type of service that is to be conducted, in the programmes of a ship’s accommodation for passengers and crew, and fares and freights. The time has gone when a Government handed out money unconditionally, and the companies do not expect to receive subsidies unconditionally.”

There ivas also the question of the Tasman trade to he considered, continued the Minister. The United States stipulated that none hut American ships could carry passengers or cargo from United States ports to certain ports outside its actual geographical boundaries, such as Honolulu, and it could not therefore object if Australia and New Zealand adopted the same attitude 'with regard to the Tasman trade. That was a position that might have to he considered by Parliament, and any action would have to he taken in the light of the necessity for preventing our shipping from being destroyed. It would not have to be done in a spirit of antagonism to the United States, but simply for reasons of selfpreservation.