TIME EXTENDED

New Zealand Herald, Volume LXXIV, Issue 22675, 12 March 1937, Page 13

TIME EXTENDED

t END OF PRESENT YEAR MR. SAVAGE'S STATEMENT ALLOWANCE FOR DELAYS GOVERNMENTS CONSULTED An announcement that the. New Zealand Government has decided to grant Pan-American Airways an extension of time until the end of the present year for the commence ment of its proposed service be tween Honolulu and New Zea land, was made last night by the Prime Minister, the Rt. Hon. M.

J. Savage. Under its agreement with the previous Government, said Mr. Savage, the company had been required to commence the service not later than December 1, 1936, but if, by reason of •unforeseen difficulties, the company should be unable to commence a service by that date, the time might, with the Government's consent, be extended. British Interests Protected

The tiinq for commencing the service, continued Mr. Savage, had just expired at the end of last year, but the Pan-American Company had represented to the Government that certain unforeseen difficulties—those created by the maritime strike on the Pacilic Coast of 'America during part of last rear—had so impeded the company's efforts to commence the service or the exploratory flights preliminary to its commencement that a start before the end of 1936 had been impossible.

In view of these circumstances, the Government had felt that it might be inequitable to refuse an extension of time to Airways, and it » decided to give the company a period of grace until the end of the present year. ' I'he public would be glad to know, continued the Prime Minister, that before arriving at a decision in this matter the New Zealand Government had consulted the Governments of all the members of the British Commonwealth having interests in the Pacific. The paramount consideration of the New Zealand Government was the safeguarding of British interests, potential as well as actual, in the Pacific, and effective steps had been taken to that end.

Inter-Governmental Conference Consultation with the Governments, particularly of Great Britain and Australia, had been close and continuous, and the, whole matter had been carefully reviewed at a conference in Wellington last September, when representatives of the three Governments — British, Australian and New Zealand — had been present. In consequence of tho decision reached a't that conference, tho New Zealand Government had decided to refuse certain modifications of the terms of the agreement which the Pan-American Company had asked for. The question of an extension of time based on > circumstances contemplated in the original agreement was, howler, separate and distinct from the question of modification of the agree- . Went and fell to be decided upon enrent considerations. The public could rest assured, concluded the Prime Minister, that th« Government's present action, of which the Governments of Great Britain and Australia had been made aware, and tnth which they agreed, had been arrived at only after full consideration had been given to. the interests of P ; ich of the members of the British '-ommomvealth concerned.