Matson Subsidy

Australasian Governments to Discuss Problem

IT is understood that the question of imposing some restriction on the Mat son liners, which now run between North American ports via Suva and Auckland to Sydney, will be discussed between New Zealand and Australian ministers at a conference which will take place shortly at Canberra. The matter has been the subject of communications for some time, but the Lyons Government post poned the discussion until after the gen eral elections.

It is some years now since the agitation was started in favour of giving the British-owned shipping companies some protection against the heavily subsidised American line; but the thing involves very delicate international considerations, and the three Governments most con cerned —Australia, New Zealand, and Fiji —have shown much reluctance in hand ling it. Public opinion, however, has forced action upon the Governments; but there is some indication that develop ments in America will determine the em barrassing situation.

It is said that U.S.A. public finances are in that condition now that it is not possible to continue the huge subsidies to shipping companies, and that the Matson line in future may have to de pend upon its own resources. In that event it is possible that the action to be taken by the three British Governments against the Matson line will be less dras tic than might otherwise have been the case.