To Cease

Sydney-Tahiti-’Frisco Line

THE Union S.S. Co. Ltd., on April 15, formally announced that the trans pacific service, which links Sydney, Wel lington, Rarotonga, Tahiti, and San Fran cisco, will cease at the end of the year.

The Maunganui will tie up when she re turns to Wellington or Sydney in Novem ber, and the Makura in December.

The service has been making a heavy loss for years. The Company cannot com pete against the American shipping com panies, which enjoy State subsidies.

The other Union Co. service (Sydney, Auckland, Fiji, Hawaii, Vancouver) is similarly threatened.

Three of the four ships carrying on these services are old, and even the Aorangi is not startingly modern. The Co., in the circumstances, could not afford to write off the ageing vessels, and so they have remained on the runs.

For the comfort of Pacific communities threatened by this development—es pecially Cook Islands and Tahiti—it may be said that the outlook is not as black as it appears. The British Imperial Gov ernments are not going to allow British lines to be driven off the Pacific, in this fashion. If subsidies are necessary to ensure their continuance, then subsidies will be paid. Conferences are now pro ceeding in London, at which Britain, Aus tralia, New Zealand and Fiji are repre sented, and it is certain that a prac ticable scheme will be devised for the maintenance of the services.

There are two main difficulties, one old and one new. The old one is the unwil lingness of the British Government to fight American interests over Pacific shipping—it is felt that Britain and the United States have a joint responsibility for maintaining good order and peaceful development in the Pacific, and trade rivalry must not be allowed to disturb their friendly relations.

The new factor is the rather pathetic little Labour Government which has sprung up in New Zealand. This admin istration is trying, through the same mouthpiece, to bark like a Socialistic wolf, and bleat like a well-intentioned lamb.

It announced a few weeks ago, with hearty gestures, that it certainly would not allow British shipping to be driven off the Pacific. Now it says: “We are not going to be pushed into granting sub sidies or taking any other action, just be cause the Union Co. suddenly decides to withdraw its service.” (Mr. Savage, Pre mier, on April 16.) What actually has happened is that the N.Z. Government demanded, as the price of its help, some measure of control over the Union Co.’s services; and was politely told by the other Governments and in terests concerned to go and chase itself.

These N.Z. Ministers, in a political sense, seem to be simple, unsophisticated folk.

If they had any knowledge whatever of the history of State-controlled steamship lines, they never would advocate anything so impracticable. They should study the story of Australia’s notorious experiment.

However, these troubles will be solved, and we shall see stronger and better Bri tish lines in the South Pacific. The old ships will disappear, as soon as modern vessels can be made available.

Present indications are that financial assistance will be given to the Co. to carry on the services, pending the build ing of modern 20,000-tonners, in connec tion with which Government aid also will be needed.