SHIPPING IN THE PACIFIC

Otago Daily Times, Issue 23045, 23 November 1936, Page 16

SHIPPING IN THE PACIFIC

NEW ZEALAND'S ACTION WELCOMED IN LONDON "VERY NECESSARY STEP" 'From Our Own Correspondent) (By Air Mail) LONDON, Oct. 24. The measures taken by New Zealand to avert the menace to British shipping of foreign State-aided competition on the New Zealand-Australian route have received a wide welcome in England. In London circles it is regarded as being a very necessary step towards according the protection so badly needed by British shipping in the Pacific. Comment made by the Financial Times was: " The measure will do something to safeguard what is, in effect, a section of the Empire's coastwise trade. The United States could scarcely cavil at such a designation, in spite of the 1200 miles sea link, when its own coasting trade reservation extends across 2100 miles of the Pacific to Honolulu. It is no secret that the United States, in fact, is the chief offendes. Under cover of the subsidies to which it is wedded, that country has secured an important interest in the Australasian trade. It is for that reason that an opportunity is being given for an expression of American opinion before New Zealand puts its new measures into operation.

"There is an excellent opportunity for giving further practical expression to that more liberal tendency which was the basis of the recent tripartite currency agreement. The question is whether that will be permitted to override the vote of the United States Congress last June in favour of a deliberate policy of shipping subsidies openly given, instead of concealed in vastly extravagant payments for such services as the carriage of mails. "The problem touches many Interests and many susceptibilities. Hence arises the need for careful action, and it cannot be said that the Empire authorities have acted in any way precipitately. They are not captious critics, indeed, who claim that remedial action is long overdue. To the ordinary observer it would seem that the case for aiding British shipping in its unequal struggle had been proved up to the hilt long since. As the first to give it practical recognition, New Zealand and Australia are to be congratulated, while the Home Government's attitude encourages the hope that there will be no long delay before the major problem is tackled." The Morning Post said:—"lf and when this legislation comes into force, the only nation to whose ships it would apply in any considerable degree is the United States. The United States would not, however, have any serious ground for complaint. Australia and New Zealand would be applying a method of protection which the American Government has long used. American shipping in the Pacific has many advantages. The dominions are not less sensible than we ourselves of the undesirability of anything resembling a trade 'war.' As the New Zealand Minister of Marine has said, it is in the interests of Australia and New Zealand to maintain the greatest possible friendship with the United States. But they naturaly wish to preserve some British character in a British service, and they have very wisely left the way open for negotiation. The new legislation, It is stated, will not come into effect 'until the United States Government has had an opportunity of making any suggestions they desire.' Perhaps the dominions' sighting shot will hit the mark." The Times said: "The action of the New Zealand Government . . . can be none the less welcome to British shipping interests because it was expected. Similarly, there was good reason to look for the step which is to be taken by the Commonwealth Government. More than two years ago—on September 6, 1934—the Commonwealth and New Zealand Governments issued a joint declaration in which they expressed the belief that the existence of adequate and efficient local shipping services between Australia and New Zealand, and their future improvement, would be jeopardised by the continuance of the conditions prevailing, and they announced a forthcoming consultation with a view to common action to safeguard their mutual shipping interests."

Mr Alexander Shaw, chairman of the P. and O. Line, in a broadcast talk on Empire shipping, warmly commended the action of New Zealand in promoting the Bill for protecting British vessels.

"New Zealand folk are far-sighted for the Bill gives power to the Government, to act by Order-in-Council to close the Tasman Sea," he said. "It is important to note that the proposed Bill is purely local. American shipping, receiving enormous subsidies has been taking the cream of the trade between Australia and New Zealand which has hitherto been entirely open' The only alternative was the wiping out of British Empire shipping on the route, with the result that both these dominions would be dependent on foreign shipping—humiliating in peace and disastrous in war. The example shown by New Zealand is conspicuous an example of action—and action that is needed now—to save British shipping."