PAN-AMERICAN AIRWAYS

Evening Star, Issue 22143, 25 September 1935, Page 8

PAN-AMERICAN AIRWAYS

THE PACIFIC SCHEME EXTENSION OF SERVICE TO NEW ZEALAND PROPOSALS BEING DISCUSSED WITH IMPERIAL AUTHORITIES [From Ock Parliamentary Reporter.] WELLINGTON, September 25. When the Right Hon. J. G. Coates, Minister of Finance, passed through the United States on his return from England recently he discussed with the principals of the Pan-American Airways their plans to extend their Pacific service to New Zealand. This information was given your correspondent by Mr Coates, who, when informed that a number of details bad been published in the Dominion, remarked that he probably knew a good deal more about the matter. Mr Coates confirmed the statement that full information regarding the proposal had been cabled to the Imperial authorities.

“Wc are keenly interested in the proposals being made,” he continued, “ and it is a question which concerns the Empire Governments. Therefore, communications are in the course of transmission at the moment concerning the Pacific scheme. Of course, New Zealand is tremendously interested from two angles, both of the Pacific and the Tasman, and in general we are anxious, isolated as we are in the South Pacific, to improve our communications.”

The Pan-American Airways proposal to extend its Pacific service beyond American Samoa to Auckland was explained fully to the New Zealand Government by its representative, Mr Harold Gatty, and is regarded in official circles as extremely attractive. There are, however, some important national considerations which explain wl.y Mr Gatty was unable immediately to complete the agreement with the New Zealand Government, which involves on the Dominion’s mrt no financial obligations any British airways concern could not secure from the American Government under the present conditions. The landing privileges needed by Pan-Ameri-can Airways in New Zealand and the whole question have been made familiar to New Zealanders in connection with the discussion over the subsidised foreign shipping in the Pacific. The Pan-American Airways plans for including New Zealand in its Pacific service have been communicated by cable to the British Government, and inquiries in official circles here show that this has been done, not because the approval of the Imperial authorities is required, bat to obtain their comment on the proposal that a foreign company intends to include New Zealand in its services. The Pan-American Airways does not propose to extend the route to Australia, but having an obligation under its subsidy arrangement with the American Government to fly to American Samoa it is considered a commercial proposition to make the comparatively short extension to Auckland. Generally speaking, the whole proposal is regarded by New Zealand as quite attractive, and the requirements of the American concern from the New Zealand Government are not unreasonable, .though Ministers at this stage are not prepared to express official opinions. An important aspect of the subject is its bearing on the overseas mail services, particularly the arrangement under which the imperial Airways and the associated concern will in 1937 extend their Croydon-Sydney service across the Tasman by flying boats. If the Pacific service operates prior to the Empire route it is not expected to complicate the position, as the New Zealand postal authorities, while naturally prepared to utilise any fast means of transit, would not regal’d the Pacific service as in any way replacing the existing contract services by steamer to San Francisco and Vancouver, Letters forwarded by the proposed Pacific air route would be subject to the similar special charges now imposed on the existing Empire air service, the American Airways being paid on a poundage basis by New Zealand.

When the All Empire route —New Zealand to England—operates the postage will be much lower, though an ideal expressed by the British Post-master-General of penny postage is not a final statement of the position, its practical bearings having not yet been decided. As for the existing annual subsidy to the San Francisco and Vancouver steamer services, this is on a continuing basis, and not for a fixed period. It can be said definitely that the American proposals have not been considered by New Zealand in a postal sense. In fact, Mr Gatty’s consultations have been almost exclusively with Mr Coates, Minister of Customs and Finance, and he did not approach Mr Hamilton ■ (Postmaster-General) while these discussions with Mr Coates were in progress. It was an interesting coincidence that the Australian and New Zealand representative of the Imperial Airways, Mr A. E. Rudder, stationed at Sydney, visited Wellington to discuss further plans regarding the coining Imperial air service and its extension to New Zealand, and he attended a conference with Cabinet to submit the latest details of the scheme. _ From inquiries made here to-day it was ascertained that Mr Gatty had expressed the view that in the event of Auckland being the terminal it would be necessary for the machines to land in the Rangitoto Channel, as thenweight made other places impossible owing to the shallow waters and theuncertainty of weather conditions. On the other hand, he is said to favour Wellington as the terminal on account of the deepness of the water close in and the large area of sheltered water.

MB GATTY'S NEGOTIATIONS [Per United Press Association.] WELLINGTON, September 25. Negotiations were commenced some weeks ago by Mr Harold Gatty on behalf of the Pan-American Airways Corporation with the New Zealand Government for the right to use Auckland Harbour as the southern terminus of the transpacific service on a n.500-mile route San rrancisco, Honolulu, Kingman Ree* Pago Pago, and Auckland—by a flying boat. This would be the southern extension of tho company’s North Pacific 9,000raile service to the Philippines. The company asked for no financial assistance, but for the right to operate for 10 years. It is proposed to use Martin or Sikorsky clipper ships. The service would bring £an hraucisco within three clays of Auckland. The company made no proposals as to the Tasman.

No decision has yet been made by the Government, which is in consultation with the British and America# Governments. .

Mr Gatty left by the Monterey on Saturday, but has appointed an attorney to carry on the negotiations. SUPPORT OF MANUFACTURERS [Per United Press Association.] AUCKLAND, September 25. # Tho opinion that manufacturers in New Zealand would enthusiastically support the proposed Transpacific air service was expressed by Mr J. A. C. Allum, president of the Auckland Manufacturers’ Association. The speeding up of the mails, he said, would mean a tremendous saving of time, and firms would be able to carry smaller stocks. The Chamber of Commerce held t meeting this morning and subsequentlymade the following statement: —.“Unless there are political or military reasons for withholding approval, we urge that immediate consent be given, otherwise there will be a grave danger of missing the opportunity of bringing New Zealand closer to the Northern Hemisphere.”