Britain Agrees to Aid Pacific Shipping

With Dominions’ Assistance, Capital and Subsidy Will Be Provided to Meet Matson Competition

A FTER protracted negotiations in Lonbetween Australian, New Zealand, Canadian, and British representatives, the British Government plans to aid Pacific shipping by a form of capital assistance in the building of ships and an annual subsidy, in co-operation with the dominions concerned.

In announcing this development on July 15, it was stressed that this action is not in a spirit of antagonism to the United States, but is simply for reasons of self preservation.

It is likely that the construction of two 26,000-tons liners with a speed of 22 knots will be undertaken as soon as details of the subsidy are worked out.

These vessels will replace the Aorangi and Niagara on the Australia-N.Z.-Fiji- Vancouver run.

No definite indication has been given of the probable amount of the subsidy, but quotas mentioned in London during the talks on British shipping in the Pacific were: United Kingdom, £90,000; Canada, £80,000; Australia, £50,000; New Zealand,,,. £25,000; and Fiji, £10,000; mak ing a total of £255,000. The Matson Line

receives an annual grant of £148,000 from the American Government.

As the Union Co.’s Sydney-N.Z.-Cook Is.-Tahiti-’Frisco service is to be with drawn at the end of this year, it has been suggested that the two new vessels should call at San Francisco on their return trip from Vancouver to Australia.

To provide passenger and cargo facili ties from Australia and New Zealand to Tahiti, the U.S.S. vessels Limerick.

Hauraki, Waiotapu, and Wairuna will make regular calls at Papeete en route to American Pacific coast ports. Pas sengers and cargo for the Cook Islands will be catered for by the new Islands vessel Matua.

Queen Salote Tubou, D.8.E., of Tonga, who arrived in Australia in June to seek medical advice, has been resting in Syd ney during the month. Her Majesty’s health has improved considerably, and it is understood that she will not be com pelled to undergo treatment in hospital.

Queen Salote probably will return to Nukualofa in September.