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Hokitika Guardian, 2 September 1931, Page 4

According to the report of a subcommittee of the Associated Chambers of Commerce which is to urge that the Government make representations to the British Government to protect British shipping against foreign competition, such as that offering by the Matson Line, by retaliatory measures of prohibition, it was stated that the subsidy paid by the New Zealand Government to tlie Union Steam Skip Company, it was believed, did not transfer. th<j San Francisco route into a profitable one. Apart from being greatly superior iu type to any of the Union Steam Ship Company’s fleet, the new shins of the Matson Line were being built ,on terms that would en- ; able them not only to cut the rates, far 'below profitable rates, hut to keep running indefinitely without any return cargo or passengers, In view of the apparent scheme of the United Government to increase its maritime position ' internationally, that Goveminent appeared to he ready to stand the loss that must follow until tne Matson Line had overcome all competition. Then, and only then, would It be in a position to raise rates against—among others—New Zealand to an appreciable degree. It required little argument to appreciate the grave position in which New Zealand might find herself 4f her export trade to America were placed in the hands of a foreign nation. It was believed that the increased tourist traffic resulting from the Mat-on Line would be small, while unemployment would be greatly aggravated if the Union Steam Ship Company had to lay aside, ns was anticipated, some five ships. A matter of serious importance was the fact that if the Matson Line captured the New Zealand trade and put the Union Steam Ship Company out of this trade route, it would be encouraged to capture the pure coastwise trade between New Zealand ports. Tliat would be a serious blow to the British shipping trade, and would close tlie sea ns a profession to our nation- ’ ais. The remedy suggested was not free of difficulty, continued the report. To prohibit the Matson Line in the trade from Fiji to New Zealand, as the Union. Steam Ship Company Was prohibited from the Haiwaii-U.S.A. trade, seemed only just. To apply the prohibitions, however, was made difficult from the fact that Fiji was not a New Zealand protectorate. It seemed that the only way in which to deal with the position satisfactorily was to conclude an agreement between Australia, Fiji, and New Zealand on the basis of trade between the three countries being regarded as coastwise trade, and then all foreign- vessels could be prevented from competing between any -ports of the free countries. While it was thought that some surcharges might well be imposed on cargo imported into New Zealand under section 205 of the New Zealand Customs Lat Act, 1908, yet the inevitable clash between a country of the magnitude of the United States of America and a small country such as New Zealand was likely to result -rather to the latter. ,