No Decision

Incorrect Report of Subsidy for C.A. Line

SPHERE have been various reports dur ing the past few months to the effect that Britain, Australia, New Zealand, and Fiji have agreed jointly to pay a substan tial subsidy to the Canadian Australasian Line Limited, so as to enable the line to compete on something approaching equal terms with the Matson Line.

It will be remembered tlPat an official announcement was made several months ago that if no such subsidy is available the Canadian Australasian Line may be compelled to cease operations at an early date.

The latest official pronouncement on the subject comes from the Prime Minis ter of Australia (Mr. J. A. Lyons), who stated on September 7 that ‘‘no decision has yet been reached concerning a sub sidy.” He said that the Federal Cabinet was waiting for a report from the Im perial Shipping Committee, which was then sitting in London.

It was reported in June that the four Governments had agreed to provide an annual subsidy of £250,000 for the Canad ian Australasian Line. This caused much satisfaction in the Central Pacific, where it was believed that the two trans-Paciflc lines (Canadian Australasian and Mat son), working under subsidy conditions, would provide Central Pacific territories with first-class transport services.

The disclosure that nothing yet has been done will cause dismay in many quarters. It is an outstanding example of the manner in which important Imperial interests are being hamstrung by im potent and muddling Governments.