British Pacific Shipping

Effect of Huge American Subsidies

IF there is one factor which contributes, more than another, to the lack of ade quate transport in the Central and East ern Pacific, it is the murderous competi tion of the heavily-subsidised American shipping line. It is crippling the enter prise and activities of the Union Steam ship Company of N.Z. Ltd.; yet such British territories as Fiji, Samoa, Tonga and Cook Islands, and the French colony of Tahiti, are almost wholly dependant upon the Union Co. for the provision of adequate communication with their usual and natural markets.

For several decades the Union Co. car ried on the Pacific Islands and Inter- Islands services without subsidy and, generally, the Islands flourished. Then, in the post-war years, the Matson Com pany came into the field, with huge sub sidies from the United States Govern ment; and, with this advantage, it has been able to take the cream of the traffic from the Union vessels. As a conse quence, the Union services have been re duced; and the Islands planters, being correspondingly cut off from their cus tomary markets, have suffered accordingly.

Efforts have been made again and again to secure co-operative govern mental action against the Matson Line, to protect the interests of British shipping, but nothing yet has been done. The posi tion may easily cause an unpleasant argu ment between Britain and America. Yet it is manifestly unfair that the Monterey and Mariposa, bought and equipped for the most part with U.S.A. subsidies, should come into Suva, Auckland and Sydney, and carry off the best of the traffic, while British ships may not under any conditions engage in similar traffic between Islands and American ports in the North Pacific.

The following was published in Sydney early in April: “Canberra, Wednesday. Negotiations Letween the British, Australian, and New Zealand Governments to combat competi tion by foreign subsidised shipping in the Pacific will be renewed when the New Zealand Prime Minister arrives in Lon don. This information was given by the Acting Prime Minister (Dr. Page) to Sir Charles Marr, (U.A.P., N.S.W.), in the House of Representatives.”