Withdraw”

“Union Co. Will

Outspoken Statement Causes Stir in Pacific Shipping Crisis

IT required the downright pronounce ment of the head of the P. and O.

Line —that, unless some protection were afforded against the heavily subsidised American liners, the Union Company will discontinue, within a few months, its trans-Pacific services between Australia and North America —to get action from Australia and New Zealand. They said, then, that they were arranging to hold in London, before the end of the year, a conference attended by the representa tives of the Matson Line, the Union Line, and the Governments of Australia, New Zealand and, presumably, Fiji.

The London conference idea is in line with the feeble policy which has been followed by Australia and New Zealand — and the British Government, too —ever since this trouble developed, at least three years ago.

The position is perfectly plain. The Matson Line, assisted by huge subsidies from the United States Government, has been able to build and to run luxury liners between San Francisco and Aus tralia and New Zealand, and has mopped up the cream of the Pacific and trans- Tasman trade. The Union Company, be ing unsubsidised, and being moreover forbidden by American laws from engag ing in the trade between Hawaii and Western America, has fought a gallant, but definitely a losing battle.

For a dozen obvious reasons —which will appeal just as strongly to the Ameri cans as to ourselves British shipping servicing British countries must be al lowed to compete on equal terms at least with American shipping; and if the British lines are not to have subsidies, then they must be given some correspond ing assistance. It is unthinkable that, in the present condition of world affairs, British shipping lines should be driven out of the Pacific in any circumstances —and especially by such conditions as are rep resented by the Matson subsidies.

The situation calls now—as it has called for three years—for quick firm, intelligent action by the British, Australia and New Zealand Governments, acting in unison, and the impulse must come from Aus tralia and New Zealand. Mr. Lyon’s London conference plan and the consul tation with the Matson Line —which was received with astonishment by the P. and O. spokesman —is an exhibition of flabbi ness which is irritating to competent observers, and profoundly discouraging to the shipping interests concerned.

When Mr. Lyons went off on his recent holiday trip, he was expected to discuss this matter of Pacific shipping in London.

Apparently, he did nothing at all, until he found himself in San Francisco, about to board a Matson liner; then he had a pleasant little chat with some of the Matson directors, and this precious London plan was evolved.

If we have to depend upon Messrs.

Lyons and Forbes, we need not look for any remedial measures for another period of years. Fortunately, the P. and O. Company now is on the warpath, and the British Government does not not try to solve its problems by forgetting them.