SUBSIDISED SHIPS

Hawke's Bay Herald-Tribune, Issue 43, 6 March 1937, Page 19

SUBSIDISED SHIPS

[a]

America Now Understands British Position NEW Y0RK DISCUSSI0NS

(By Teletrrapb-

'"•M>ynaht v

NEW YORK, March 5. j The official American position con-J cerning the shipping situation can be ! said to be as follows. It is surprised that competition supplied by United States Jines in the Pacifie is considered unfair and holds that British shipping has always been heavily subsidised. It f eels that American lines have developed the Australian and New Zeajland passenger traffic enormously from 150 passengers a month a few years ago to five hundred now, of whom 250 are tourists. ' There is traliic enough for British lines also and these are welcomed. There is concern over the Tasman, laws but hopes that these will not be instrumented and it will not be necessary to deprive American lines of a share in the Tasman revenue which aiinually approximates £50,000, particularly now that two British vessels will also be subsidised. Associated Press learns authoritative•ly that only after protracted discussions between British and American officials has there arisen a real appreciation of the true merits of the British position concerning Pacific shipping. The British viewpoint, which has been made clear to the iState department, is that a genuine difference exists between subsidies of sueh a moderate nature tfhat I they aid lines which legitimately sefve a worthy national purpose and sulvidies of such an unrestricted nature that they become instruments for driving competition from seas or use the taxpayers money to enable favoured private interests to accumnlate large profits. This viewpoint can be said to have made a definite impression on the American official mind and there is some reason to believe that certain influential quarters view with satisfaction the impending revision of American siibsidies and allowances, particularly if they are downward.