Pacific Shipping

War

Governments Take a Hand Political Considerations

THE agitation against the Matson Line of steamers, which has been going on ever since the Americans announced the introduc tion of new liners, and which became more active when the Matson Line added Auckland to its itinerary, is now beginning to bear political fruit.

The first developments occurred in New Zealand, where the Prime Min ister was repeatedly asked whether he thought it fair that this American subsidised line should be permitted to engage, without restrictions, in the traffic between the British countries of Fiji, New Zealand and Australia.

The New Zealand Prime Minister side-stepped the question for some time. Obviously, he did not wish to be in a dispute or struggle between the powerful institutions affected. He pointed out that, nothing very much could be done to discourage the Americans, unless it were done jointly by the four Governments con cerned —namely, Britain, Fiji, New Zealand and Australia.

However, there has recently been a further important development. A deputation representing the maritime unions has made very strong and urgent representations to the Federal Government of Australia, insisting that something must be done to check the expansion of the Matson Line.

The arguments placed before the Government included the following: (1) The Matson Line is more or less dir ectly subsidised by the American Government. (2) British ships are not permitted freely to engage in all-American maritime traffic. (3) British ships are not permitted to en gage in the traffic between Honolulu and San Francisco. (4) The United States Government places a prohibitive tariff against the impor tation into the United States of the primary products of Australia, New Zealand and Fiji.

The deputation therefore asked why the powerful Matson Line should be permitted unchecked to engage in the important maritime traffic between Fiji, New Zealand and Australia.

The Federal Government has an nounced that it regards the position thus placed before it as one of first rate importance; and it has given the impression that it is taking up the matter vigorously and at once with the British, New Zealand and Fijian Governments.

The Matson Line, for many years, has been growing steadily in strength and influence. It did particularly well in the boom years of 1924-1929, when the tremendous trade drive made by American manufacturers in Australia and New Zealand gave it a huge cargo business. It is now setting out to capture the passenger traffic, and two magnificent liners are shortly to come on to the run. The present itinerary is San Francisco, Honolulu, Pago Pago, Suva, Auckland and Sydney, and back by the same route. Devel opments in regard to the Matson Line therefore; are of great importance to the Islands groups of the Central Pacific.

If the four British Governments mentioned are to act jointly, in a policy of making the South Seas Ter ritories more or less of a close preserve for British shipping, it is likely that Islands Territories, other than Fiji and Samoa will be affected.

The questions raised may possibly embrace the operations of the German N.D.L. steamer. Bremerhaven, whose activities in the out-ports of New Guinea have been a source of irrita tion to Australian-owned shipping companies. There appears to be no objection by British shipping com panies against regular calls at main ports by steamers of foreign lines; but there does seem to be a very strong objection to foreign-owned ships engaging irregularly in the carrying trade as between British South Sea ports—and this is the gravamen of the charge made against foreign ship ping companies in the particular cases under note.