THE New Zealand Herald AND DAILY SOUTHERN CROSS FRIDAY, FEBRUARY 19, 1937 PACIFIC AIR SERVICE

New Zealand Herald, Volume LXXIV, Issue 22657, 19 February 1937, Page 8

THE New Zealand Herald AND DAILY SOUTHERN CROSS FRIDAY, FEBRUARY 19, 1937 PACIFIC AIR SERVICE

Pan-American Airways is ready to operate a transpacific service bringing Auckland within three days' flying of San Francisco and four of New York, but its plans are held up pending agreement with the New Zealand Government. Two months have already been occupied in negotiations without any apparent result and the public is becoming exercised lest a unique opportunity be missed by official bungling. The Government should issue a clear statement on the causes of the delay, which to ordinary minds appears inordinate and unnecessary. There is a real fear in the public mind lest the offer be withdrawn owing to the Government's tardy methods. Pan-American Airways cannot keep its representative, Mr. Harold Gatty, and his specialist staff waiting in New Zealand indefinitely while the Government tries to make up its mind on a simple and most advantageous proposition. The. president of the Associated Chambers of Commerce, Mr. M. G. C. McCaul, has therefore done well to call attention to the present appearance of stalemate. He goes further, in fact, referring to the suggestion that there has been a serious hitch in the negotiations. The Prime Minister denied a similar suggestion a few weeks ago emanating from Sydney. No doubt Australian interests would rejoice if the negotiations did break down. They would be glad to entertain a similar offer themselves and would know—better than the New Zealand Government appears to do—how to profit by it. But if, as Mr. Savage said last month, there has been no hitch, neither has there been any action. Instead of nailing down a great proposition, the Government appears willing to let it slip.

Official hesitations are the more inexplicable when the terms of the offer are recalled. The foremost United States flying organisation, Pan-American Airways, has undertaken to establish a weekly service by modern flying-boats between San Francisco and Auckland, the journey to occupy three days. The company does not ask for any subsidy or financial assistance from New Zealand, and it will itself construct and maintain all necessary navigation and terminal facilities. All it requires is a permit to bring its aircraft into Auckland for a period of 10 years. No protection against competition is sought and no exclusive privileges. That it is well able to discharge its undertaking is proved by the successful establishment of a greater enterprise, the east-west Pacific service, apart from routes in operation in North, Central and South America. Moreover Pan-American Airways is this year expected to organise the complementary North Atlantic service in co-operation with Imperial Airways and by agreement with the British and United States Governments. What, then, is barring its entry into the South Pacific? It should be recollected that its present proposition was closely examined by the National Government in |1935 and the necessary permit granted, provided the service was begun last year. The company found itself unable to fulfil this condition, largely owing to the general hold-up caused by the shipping strike in American Pacific ports. What it seeks now is an extension of the expired licence for the current year. Its active intention to proceed at the earliest moment with the service is proved by the landing in Auckland two months ago of technical experts to arrange the necessary organisation at this end. Everything is in train for an early start as soon as officialdom in Wellington issues the necessary permit. What is the obstacle 1 .

In the negotiations with the previous Government, one obstacle was said to be the desire of British interests to secure reciprocal rights to land in American territory, should British companies wish to establish services in the Pacific. New Zealand was to be the pawn in this bigger game and a very handy pawn, too, because she was the only country liable to lose anything. She might lose a valuable and swift connection with the larger world, she might be left on a branch line off the world air routes, and remain in her original isolation. Fortunately Mr. Coates declined to allow New Zealand to be a pawn in so one-sided a game. In any case the right to land in Auckland was not a strong enough lever to use against the American Government, which was being asked to safeguard British interests if and when they came into being. No Government would commit itself to such a hypothetical action far in advance of any practical proposition. In all the circumstances, the safeguard finally arranged was fair and reasonable—the right of the New Zealand Government to cancel the agreement without any compensation to PanAmerican Airways, should British air services be refused equal landing rights by the United States. Surely that settlement is as valid and satisfactory as when it was made 15 months ago. But if that issue is not holding up the present negotiations, it is hard to imagine what is. The argument that a Pacific service would prejudice the Empire air mail has long since been exploded. The two services would not be competitive but complementary, feeding each other and representing in combination a most important round-the-world route, capable of being flown in about 15 days when all connections are completed. New Zealand in general and Auckland in particular will not readily forgive the Government if, by its unexplained procrastination, the opportunity presented freely and without obligation by Pan-American Airways is finally lost..