Attitude of Comonwealth

German Ships In

N. Guinea

Attitude of Comonwealth Government

THE Commonwealth Government refused a request from Pacific shipping interests that the coastal clauses of the Navigation Act be re-imposed on trade between Australia and New Guinea. The object was to restrict the proposed new activities of the N.D.L. Line, but the problem has been solved in the meantime by the sale of the two German ships (Neptun and Merkur) to Messrs Burns Philp and Co. Ltd.

The Prime Minister (Mr. Lyons) an nounced that after full consideration the Government had decided it could not ac cede to the request.

Strong-representations were made to the Government by planters and other interests in New Guinea against the re imposition of the Navigation Act.

It was explained that the coastal clau ses provide that only Australian or British vessels with special permits may trade round the Australian coast.

The restrictions on foreign vessels were lifted on the Australia-New Guinea trade in December, 1925, when, after inquiry, it was decided that the development of New Guinea would benefit.

The Government, it is believed, takes the view that similar conditions pre vail now.