A PACIFIC AIR SERVICE

Otago Daily Times, Issue 22719, 4 November 1935, Page 8

A PACIFIC AIR SERVICE

There appears to be every prospect of the early conclusion of an arrangement between the New Zealand Gov eminent and Pan-American Airways respecting the trans-Pacific service which that organisation is desirous of extending to this Dominion. While negotiations have been in progress, there has been an amusing display of anxiety in the north lest the “ unique offer ” of the American corporation should be withdrawn. Auckland being designated as the New Zealand terminal of the service, doubtless it was annoying to Aucklanders to see the Government, as a northern contemporary put it, “ fumbling with opportunity.” It is difficult to suppose that the same anxiety would have been exhibited if the proposed terminal had been in the South Island. Mr Coates was perfectly justified in his statement that the Government was not to be “stampeded” into entering without full consideration into an agreement giving a foreign air company the rights it was seeking. It was certainly desirable that the Government should take-cognisance of all external aspects of the proposal. In a cable from London of last week reference was made to the existence of some British apprehension lest an aerial counterpart to the American subsidised shipping competition in the Pacific should be created. The trans-Pacific air service will apparently receive the benefit, in its extension to New Zealand, of an American Government subsidy. But a statement by the Prime Minister has made it clear that the New Zealand Government has specifically stipulated that the agreement between itself and Pan-American Airways should embody a clause providing for reciprocity in the respect that British aviation companies shall have rights of entry into United States territory similar to those to be granted to. this American com pany in New Zealand. Should this provision not be honoured, thenthe New Zealand Government will have the right of terminating its arrangement with Pan-American Airways within twelve months. A final acceptance by both parties of the terms of the reciprocity clause is all that is now apparently needed for a successful conclusion of the negotiations. The pro jected arrangement should be one of considerable advantage to this Dominion, especially as the service will be provided at no cost to this country. The terminal facilities for the flying boats arc to be established and maintained, it has been said, entirely at the American corporation’s own expense. The service, operating weekly, is expected to bring Auckland within three days’ flying of San Francisco, and to be inaugurated by August next. And when, in the following year, the Tasman Sea is bridged by Imperial Airways, New Zealand should be linked up by air with the rest of the world in a manner that will introduce a new era of communication.