THE PROBLEM OF SHIPPING

Wanganui Chronicle, Volume 74, Issue 243, 14 October 1931, Page 8

THE PROBLEM OF SHIPPING

THE BRITISH EMPIRE VIEWPOINT LONDON’S PREPONDERATING AUSTRALASIAN INTERESTS (By HUGH C. JENKINS). ARTICLE NO. 3. In this article, the geographical disposition of the British Empire is considered and the financial interests of London in Australia and New Zealand is shown to dwarf America’s interest. The vital interest of the Empire are revealed and the opinion is expressed that in a time of crisis America would be likely to withdraw her shipping, whereas Britain’s self-interest, allied to sentiment, would make such a prospect unlikely. The conclusion is, therefore, that everything should be done to foster the association with Briitsh shipping.

Because she is a group of islands beside a largo land mass, the inhabitants of the Brit’ Isles had to become seafarers at an early period of their history. In the time of Alfred the Great the British Navy was born. In the days of the Spanish ascendency the British Navy, under Howard and Drake, saved England from the tyranny of Castile and in the time of Napoleon tho British Navy, under Nelson, saved Europe from the turmoil of the Little Corporal; while in the last Great War it is possible that the world was saved from the tyranny of tho Prussian State rtlea by the victory of tho British Navy, under Jellicoe, at the Battlo of Jutland. Whether the world was so saved may be questioned, but it is certain that the British Empire was. While it was tho British Navy which did tho fighting at these critical periods, it must not bo thought that a special fighting force only undertook these adventures. Not at all! Tho British Navy has ever boon recruited from the mercantile marine. The minesweepers of the last war -were fishing trawlers, manned by fishermen. It is the presence of tho largo mercantile marine which permits tho British Navy to expand its personnel in time of need. Hence it is to bo observed that tho maritime defence of tho British Empire depends upon tho numbers of mariners available, while the numbers of these in turn, depend upon the employment which is mado availabl.) by the mercantile marine of Britain. From a defence point of view, therefore, it is desirable that every encou 1 ’ agement should bo given to British merchant ships employing British crews. The Geography of Empire. The need for a largo supply of mariners to tho British Empire is at onco apparent immediately tho geographical disposition of the British Empire is considered. The United States is geographically comparable to a closed fist, while the British Empire is comparable to an extended hand. From the British Isles the thumb extends westward to Canada, the index finger extends to tho Union of South Africa and Rhodesia, another finger extends to India, another to Australia, and yet a fourth finger extends to New Zealand. It is the sea that binds tho Empire together. The sea lanes arc the Empire’s arteries, while the mercantile marine may bo regarded as ihe blood stream. Withdraw the blood stream from the body and it ceases to exist as an organism. In fine, the Empire subsists on its mercantile marine, and without that mercantile marine tho Empire would cease to be. The Investment Tie. The movement of shipping between the United Kingdom and Australia and New Zealand, however, does not proceed from motives of patriotism but from motives of profit. Of tho public debt of Australia about half has been provided by loans from London and the public debt of New Zealand is similarly constituted. The amount of Australia’s publ' debt floated abroad is as follows: States Public Debt raised overseas—- . £ London 385,670.884 New York ... 30,989,788 Total £415,660,672

Commonwealth Public Debt raised overseas—- £ London 172,497,984 New York . 33,563,752 America’s financial interest in the Australian States is, therefore, less than 8 per cent, of that of the United Kingdom, and less than 20 per cent, of tho United Kingdom’s interest in the Australian Commonwealth. The domicile of New Zealand’s public debt is as follows: — £ London 154,546,941 Australia 4,175,350 Now Zealand . 117,311,067 America „ Nil. Where tho Treasure Is. “Where the treasure is there will tho heart bo also ’ ’ is still a true say- > ing. Beside the ties of common ancestry, common traditions and a common Empire, the treasure interest of the United Kingdom in Australia and New Zealand totals £712,715,809; America’s interest totals £64,553,540, which is loss than 10 per cent, of that of Great Britain. It should be borne in mind that beside this public debt there is also a tremendous private indebtedness to the United Kingdom and it is probable that tho preponderance of London’s interest in Australasia over that of New York in the provision of public funds provides some indication of the preponderance of London’s supply of private capital also. London, the Alarket. The natural result, indeed the purpose, of the investment of British funds in Australia and New Zealand is that it shall develop trade between thes< countries and London. London is a free market and at the same time tho best market for most other countries to buy in. It, therefore, occasions no surprise to find that of tho total exports from Australia in the year 1928-29, which amounted to £144,850,452, tho United Kingdom took £55,172,552 and of New Zealand’s £55,579,063 exports during 1929 the United Kingdom took £40,957,043. Britain’s Interest in Australasia. Britain’s material interests in Australasia, therefore, are preponderating. Investments, the supply of raw materials for her industries, food for her industrial population and her interest in our trade, which she encourages, means that Britain’s prosperity is tied up with that of Australia and New Zealand. The British people arc unlikely to allow our position to be jeopardised by an crisis. America’s interest, on the other hand, is purely her own; America’s concern for Australia and Now Zealand is negligible in interest and less in sentiment. The question which might well be put, therefore, is in how far can Australia and New Zealand permit herself to bo dependent upon the United States for the essential shipping services. This involves the study of what is essentially an Australasian issue and this survey will bo made in the next and concluding article. (The concluding article of this scries will appear in Friday’s issue of the “Chronicle.”)