U.S.A. and N.Z. by Air
p. 23 · Read in the full issue
Hitch in Plan to Link
Reciprocity Clause in Agreement Delays New Pacific Service
From Our N.Z. Correspondent
Auckland, Dec. 1.
IVI ORE than a year has now elapsed since the signing of an agreement be tween Pan-American Airways and the New Zealand Government for a trans pacific air service, but no indication of an early commencement of the line has so far been given.
Under the terms of the agreement, the service is to be in operation not later than the end of December, although the Minis ter for Transport is empowered to extend the starting time a year should any un foreseen difficulties be encountered.
In the absence of detailed surveys of the southern portion of the route, which the agreement lays down as between Sar Francisco and Auckland, it is certain that the service cannot be started before the end of this year. No announcement has yet been made of any application for an extension.
The original agreement provided the company with facilities and the right to operate an air service between the two countries, for 10 years, with at least two machines from each terminal each month.
It was agreed that no discriminatory tariff would be imposed on aircraft of the company landing at Auckland during the period.
British rights were safeguarded by a reciprocity clause, which has since been the subject of lengthy negotiations. This
provided that if a British company should fail to obtain similar facilities from the United States Government for a trans pacific service, the Pan-American agree ment could be cancelled after 12 months’ notice.
P.-A. Airways subsequently objected to certain of the terms of the agreement, especially the reciprocity clause, and the matter has been discussed between its representative, Mr. Harold Gatty, and the N.Z. Government.
There are grounds for believing that the British Government and the former N.Z.
Government did not see eye to eye on the reciprocity clause, and that Britain jumped at the chance of renewing its representa tions when, after the matter had appar ently been closed, it was re-opened through the new Labour Government referring to it again over the reciprocity clause.
The whole question was discussed, it is understood, during the recent conference at Wellington between representatives of New Zealand, Great Britain, and Australia on air matters.