NEW CUNARD LINER

New Zealand Herald, Volume LXIX, Issue 21289, 16 September 1932, Page 11

NEW CUNARD LINER

WORK MAY BE RESUMED IMPORTANT CONVERSATIONS (Received September 15. 6.5 p.m.) British Wireless RUGBY, Sept. 14 It is understood that conversations regarding the possible resumption of work on the new 73,000-ton Cunard liner at Clydebank took place yesterday and today - between Mr. Neville Chamberlain, Chancellor of the Exchequer, Mr. Walter Runciman, President of the Board of Trade, and Sir Thomas Royden, a director of the Cunard Company, at Sir Thomas' home, Rake Hall, Chester. Tile regular meeting was held at Liverpool by the other directors of the company. The Ministers returned to London to-day.

Widespread regret was caused in England by the announcement on December 11, 1931, that the Cunard Company had decided to suspend work on the construction of its giant liner of 73,000 tors, which had been commenced early in the year. The Government had assisted the company to put the work in hand by partially guaranteeing the insurance. The cost of the vessSl was estimated at £4,000,000 to £4,500,000. In the House of Commons on November 10, 1930, Mr. W. Graham, then President of the Board of Trade, said it was thought that in the open market insurance could not be raised for more than £2,000,000. He proposed, therefore, that the Government should make itself l esponsible for all that part of the insurance which was not raised in the open market, at a premium of lj per cent. 1 his was approved. The chief reason given by the company for the suspension of work on the liner was the adverse effect on the company s finances, and prospects of a decline in the North Atlantic passenger and freight tjalfic. As the construction operations gave work to about 3000 men directly and 10,000 indirectly, it was thought in some quarters that the National Government might give the company financial assistance. However, Mr. Runciman said that was pub of the question. All he would promise at the time was that the Government would carefully consider any proposal the company might make.