Us Government’S

Washington Debate.

Aid For

New Matson Ships

DOUBTS about the early appearance of Americ passenger liners on reg' service in the South Pacific crop up at Washington in July.

On July 29, however, the Mai Line announced at Sydney that 14,000-tonners would be on California-Australia run in tim bring Americans to Australia the 1956 Olympic Games.

It was said tjhat the Un States Government had agreec pay part of the 47,000,000 do! (£A21,000,000) required because ships “will be serving an esser foreign trade route.”

Between them the liners w make 15 round trips a year.

Earlier, at Washington, Randolph Sevier, president of Matson Navigation Co. and subsidiary, the Oceanic Steam Co., had told the House of Re sentatives Merchant Marine C mittee that he was “very hesit to put 15,000,000 dollars into two proposed new passenger li for the South Pacific route bee of maritime labour unrest in United States.

Still earlier it had been repc that Matson’s proposed conve: of two Mariner-type freighter into liners that would each c 370 passengers and a crew of was “hanging in the balance.”

The ships are the Free £ Mariner and Pine Tree Marine IN July the sale of the shiß Matson by the United S Government was attache* the Senate by Senator Williams (Delaware).

Senator Williams described! deal as “fantastic.”

“Two ships about two years which cost more than 17,50 dollars, were sold for 10,00 dollars,” he said.

“Now, 30 days later, we are asked to give the buyers 11,3 c dollars in cash towards impr: these same ships and making suitable for passenger service..

“As if that is not enought proposal is that the taxp: subsidise their operations for next 10 years.”

A Matson spokesman said that the 11,300,000 dollars won to shipyards, and not to theE for converting the vessels.

IN June, Mr. Sevier said press statement that in of the substantial amou:i private capital involved me proposed programmes, the mat ment and directors of the;

corporations were concerned “with factors that might render the services unprofitable or imprac ticable.”

The Matson ships will compete with the post-war British Orient liners, which, after careful experimenting, have found the Pacific extension of the England- Australia service to be both popular and profitable.

BEFORE the war, Matson competed with the Canadian- Australasian Line’s Vancouver- Sydney service. Matson linked San Francisco, Los Angeles, Honolulu, Pago Pago, Suva, Auckland and Sydney, while the British line covered Vancouver, Honolulu, Suva, Auckland and Sydney.

Until October, 1936, the Union Royal Mail Line served San Francisco, Papeete, Rarotonga, Wellington and Sydney, but this line expired with a British withdrawal due largely, it was claimed, to the competition of the newer, Washington-subsidised Monterey and Mariposa, which were much more luxurious than the vener able Makura and Maunganui, of the Ibion fleet. |The folding-up of the Union Royal Mail Line left Tahiti high and dry. Strenuous efforts were made to lure the Matson ships to Papeete, but without avail. And thereby hangs a tale.

IN December, 1936, PlM’s Papeete correspondent recalled that in the early 1900’s a Matson shin had regularly sailed from San Francisco for a four-day call at Papeete. Then the Union Royal Mail Line was established, and the arrival of the first through Union ship was signalised by the return to California of the Matson ship in ballast.

Whereupon the Matson (Oceanic) president, Mr. Spreckels, withdrew the ship and, it is alleged, swore that as long as his line remained in service no ship under its flag would ever again call at Tahiti.

This story was strenuously revived when, in 1936. Matson rejected Papeete’s application.

The ban was presumably lifted when Papeete was included in the

new Matson ships’ itinerary.

Mr. Warren Bean, a representa tive of Matson-Oceanic Lines, was in Tahiti in July carrying out further discussions there in connection with the resumption of the Matson trans-Pacific service late next year and with the con struction of a hotel in the interim.

With Mr. Bean was Mr. Frank C.

Kugelberg, for many years associated with Tahiti business interests, who was taking movie shots of the island for publicity use in the United States. *1 Mr. T. L. Macdonald, NZ Minister of Island Territories, became the first Cabinet Minister to visit the remote Tokelau Group when he made a flying-boat visit to the islands from Samoa in July.