DRAFT OF SHIPPING AGREEMENT

Southland Times, Issue 23308, 18 September 1937, Page 7

DRAFT OF SHIPPING AGREEMENT

DEPARTURE FROM FIRST PROPOSALS SYDNEY, September 17. The Canberra correspondent of The Sydney Morning Herald says that the draft agreement for the provision of Government financial assistance for a British shipping service among Australia, New Zealand and Canada departs materially from the principles suggested by the Imperial Shipping Committee. It is understood that the proposed agreement, details of which are being questioned by the Governments of New Zealand and Canada, will provide for contributions to the service as follows: (1) Usual mail subsidy on the same basis as now applies between the three Dominions. (2) An obligation by the Governments of Australia, New Zealand, Canada and Britain in respect to the annual interest bill on the cost of the two new ships which will operate the service. (3) An undertaking by the Governments, jointly, to guarantee the loan which will be necessary to pay for the ships. INCREASE IN PASSENGER FARES (Received September 17, 9.30 p.m.) NEW YORK, September 16. The Boston correspondent of The New York Herald-Tribune says that trans-Pacific passenger fares are being increased by ' seven per cent, from October 1. POSSIBILITY OF DELAY SHIP-BUILDING COSTS INCREASING (Received September 17 8.30 p.m.) PRINCETON (Canada), Sept. 16. Mr Beatty, president of the Canadian Pacific Railway, said increased British costs of ship building* might conceivably delay the construction of the two new vessels for the Canadian and Australasian Line unless most favourable financial arrangements could be effected. He added, that costs had greatly increased after the opening of negotiations with the intention of competing with the Matson Line.