Subsidising British Shipping in Pacific

Manawatu Times, Volume 61, Issue 212, 8 September 1936, Page 7

Subsidising British Shipping in Pacific

COMPREHENSIVE PROPOSALS POR CO-OPERATIVE EFFORT. United Press Association— By Eloctrio Telegraph. —Copyright. Received Monday, 9.20 p.m. SYDNEY, Sept. 7. The Sydney Sun’s Canberra correspondent says recommendations that Australia co-operato with other Governments concerned in an effort to maintain British shipping lines in the Pacific in competition with American services are understood to be contained in a special report submitted to the Federal Cabinet.

The report has been prepared by Messrs Menzies and Page following London conferences with representatives of the British, Canadian, New Zealand and Fijian Governments, and the shipping interests affected. Proposals Were discussed for an annual subsidy of about £250,000 to assist British ships to meet the heavily subsidised American services. It is suggested that the subsidy be contributed on the following basis: —Britain, £90,000; Canada, £80,000; Australia, £50,000; New Zealand, £20,000; Fiji, £IO,OOO.

If a general agreement is reached for granting the subsidy, it is suggested that subsidies should be provided in the competitive zones by the respective Governments, jointly or separately, according to the nature of the services. For important services shipping could be standardised into two classes—modern passenger liners with refrigeration space and cargo steamers capable of a speed of 17 knots. Shipping on all branch lines is to be co-ordinated and placed on the most efficient working basis possible. Obsolete and uneconomic shipping will be replaced by modern vessels so that as fine a service as possible can be provided.