No Subsidy Yet

Imperial Conference Fails To Agree on Pacific Shipping Question

'X'HE Imperial Conference ended with * out any decision having been reached on the question of subsidising the Canadian - Australasian steamship line, which runs in competition with the sub sidised American (Matson) line.

An extraordinary amount of inaccurate rubbish was supplied from London to the Australian newspapers, which published it with all kinds of sensational heads. We were told, variously, that an agreement had been reached; that two 22,000 tons liners would be built, at a cost of £3,000,- 000; and that the substantial subsidy thereon would be borne by Britain, to the extent of 51 per cent, and that 49 per cent would be divided between Aus tralia, New Zealand and Canada. It was said, also, that an arrangement was t being made with the United States under which if U.S.A. allowed British ships to trade between Honolulu and ’Frisco, the Em pire Governments would allow Matson liners to continue to trade between New Zealand and Australia.

Actually, nothing was agreed upon.

There seems to have been an enormous amount of talk—and then the Imperial Conference ended.

At this date (June 21) the matter of subsidising British shipping in the Pacific is being considered in London by a com mittee, which “hopes to reach a provi sional agreement that can be referred to the Governments interested.”

There is an indication that the whole subject is tied up with an apparent need to subsidise British shipping in the north west Pacific, which is severely feeling the growing competition of the cheaply run Japanese lines.