AIR SERVICES

Southland Times, Issue 22729, 4 November 1935, Page 8

AIR SERVICES

AMERICAN COMPANY PRIME MINISTER’S EXPLANATION LINKING UP DOMINION (Per United Press Association.) Christchurch, November 2. The terms of agreement which the Government has made with Pan-Pacific Airways for a service between New Zealand and the United States were explained by the Prime Minister (the Rt. Hon. G. W. Forbes) in an address at Hanmer last evening. The service would be provided at no cost whatever to the country, he said. There had been questions asked as to why such facilities should be given to an American company and he wished to make it clear that there was a stipulation in the agreement with PanPacific Airways that when a British company was prepared to operate the Government would ask for reciprocal rights from the United States. The United States must let British land planes have facilities for landing in the United States, and if those facilities were refused the Government could terminate its agreement with PanPacific Airways in twelve months’ time. The Government considered that a great advance had been made by the arrangements for an air service between New Zealand and the United States. Mr Forbes stated that arrangements had also been made with Imperial Airways through the British Government for New Zealand to be connected with the England-Australia air service. That would come into operation in 1937 and the result would be that New Zealand would have the British service on one side of the world and a service to the United States in other directions. It would not be long when New Zealand, which was once regarded as isolated, would be linked up with the rest of the world with services by air of passengers and mails and her isolation would be broken. STATEMENT DENIED CABLE FROM GATTY. (Per United Press Association.) / Auckland, November 3. A statement in a cablegram from Honolulu concerning the date of the inauguration of the Pacific air service to New Zealand was referred by cable on Saturday to Mr Gatty and he has cabled in reply: “The statement purported to have been made by me is entirely untrue. The original plans are unchanged and prospects are entirely dependant on the New Zealand Government.” FINAL NEGOTIATIONS • COMPLETION OF SIGNATURES EXPECTED. (Per United Press Association.) Auckland, November 3. The signatures of the memorandum of agreement between the Government of New Zealand and Pan-American Airways by their respective representatives will probably be completed within a few days. Negotiations on the outstanding points were continued during last week and a final decision will be reached upon confirmation of the draft terms by the corporation. Remaining for settlement was a clause providing that British aviation companies should have rights of entry into United States territory similar to those to be granted to the American company by New Zealand. Following the announcement by the Government that the negotiations were approaching conclusion the corporation’s attorney, Mr Lisle Aiderton, conferred with the Minister of Finance (the Rt. Hon. J. G. Coates) and then went to Wellington, where the question was discussed with the officers of various departments at a conference on Friday. Details of the clause were settled and the proposed text has been submitted to Mr Coates for his approval. It will be communicated to the corporation, which it is expected will agree that the terms are satisfactory. According to a cablegram received by Mr Aiderton on Friday the corporation regards this question as the only one remaining for settlement. Provision is made in the draft agreement for a commencement next year of operations by the corporation. This also will be confirmed by cable before the agreement is signed.