SHIPPING PROBLEM

Evening Post, Volume CXXIII, Issue 136, 10 June 1937, Page 9

SHIPPING PROBLEM

LINERS FOR PACIFIC

ARRANGING FINANCE

United Press Association—By Electric Telegraph—Copyright. (Received June 10, 10 a.in.) LONDON, June 9. The Imperial Conference Conimittee which is dealing with the question of trans-Pacific shipping met Immediately aher breakfast in art endeavour to make headway a"nd avoid the p6ssibility of the discussions extending after the termination of the Conference. Though the Committee still has riot readied a decisidti, there is evferyhope tonight that agreeiritiht is witliin reach to coiistrufct two 20,000-tbii liners for the trans-Pacific route to cost approximacly £3,000,000, compared with the original estimate of £2,5C0,0d0. MORE FAVOURABLE TURN, The political writer of the Australian Associated Press agency understands that the discussions took a more favourable turn after the delegates had conferred with Sir Edward Beatty; chairman of Canadian Pacific Steamships; Ltd. An agreement would involve a compromise regarding financial guarantees by the British and Dominion Governments to shipping companies probably necessitating in each case1 a somewhat higher contribution than Was tentatively suggested.in Britains memorandum submitted to the Doming ions as the outcome of the Imperial Snipping Committee's report. The new vessels would be financed by the Governments similarly, to the Queen Mary, concerning which a Bill was passed at Westminster authorising the Treasury to advance up to £9,500 000. It is; believed that each Dominion would have to pass separate legislation.. » One of the major difficulties has been the substantially-higher expenditure that tfbuld be. : involved In building new ships, compared with the original estimates, as a result of the increased shipbuilding costs, There has also been difficulty in reconciling the shipping companies to the Government experts' figures.