PACIFIC SHIPPING.

Manawatu Standard, Volume LVII, Issue 193, 16 July 1937, Page 6

PACIFIC SHIPPING.

One of the important questions of Empire policy discussed at the Imperial Conference related to British shipping in the Pacific Ocean. The effect of the competition of foreign subsidised rivals has been to drive the British flag from one route between Australia and the United States, and to seriously endanger the prospects of steamers on the other. A report from the Conference recorded the agreement of the Governments of Great Britain, Canada, Australia, and New Zealand to subsidise the cost of building a fast 25,000 ton liner for operation between Vancouver and Sydney, while it was intended to build a sister ship later, the Governments promising to guarantee loans at a low rate of interest on the companies concerned undertaking to bring their fleets up to date in the next few years. The object of the discussions was to place Pacific shipping under the British flag in a position to meet the competition of its rivals, but so far the report of a subsidised service lacks complete confirmation. The visit of the Dominion’s Finance Minister (Hon. W. Nash) to Washington has enabled him to bring this vexed question before the United States authorities. British shipping under American law is forbidden participation in coast-wise traffic, a. ban which extends between Honolulu and the mainland. This and the building of modern steamers by Government subsidy have given privileges to American shipping which have seriously affected the welfare of the British Pacific lines. The situation has long been recognised as most acute, and means to overcome it have yet to be adopted. Last session legislation was passed by the Dominion Government to place a ban on foreign subsidised lines trading between this country and Australia, and a similar measure is before the Commonwealth Parliament. It has been hoped that this enactment, which gives undoubted bargaining powers, will help to solve the problem, but failing this some measure of Governmenl assistance is imperative. The British nation cannot submit to its flag being driven entirely from the Pacific, for to surrender the line of communication now remaining would injure the strategic needs of the Empire. Whatever course of action is ultimately taken there should be no unnecessary delay.