PACIFIC AIR ROUTE

Manawatu Standard, Volume LVII, Issue 216, 12 August 1937, Page 9

PACIFIC AIR ROUTE

CRITICAL STAGE OF TALKS. DOMINION AND AMERICA. LANDING RIGHTS QUESTION

(United Press Association —I3y Electric Telegraph—Copyright.) WASHINGTON, Aug. 10. The Australian Associated Press learns authoritatively that the negotiations between New Zealand and Pan-American Airways are at a most critical stage. It is feared they ( may be broken off. It is understood that the issue is whether imperial Airways should be allowed to maintain virtually a competitive New Zea-land-North American service with PanAmerican Airways.

x. m .ue New Zealand Government is insisting that Imperial Airways should tie given landing rights at Honolulu and ban Franbisco, making it possible lor Imperial ' Airways to carry New Zealand and Australian passengers desirous of crossing the United States, Imperial Airways’ normal terminal being Vancouver. Imperial Airways is believed to be offering a plan whereby passengers may use tickets that are interchangeable on both lines.

Negotiations between the State Department, the British Embassy and rail-American and Imperial Airways have reached a point where the PanAmerican company’s principal negotiator will probably proceed to New Zealand in a few days in an effort to secure a closer approximation to the Government’s alleged original promises.

BRITISH FIRM’S RIGHTS. PREMIER’S COMMENTS. Per Press Association. WELLINGTON, Aug. 11. _ ‘•'Our agreement provided for reciprocal rights,” said the Prime Minister (Rt. Hon. M. J. Savage) when invited to-night to comment on the cable message from Washington on the air services. Mr Savage said the New Zealand Government considered that the British company should have the same rights as the Government was granting to Pan-American Airways. The Government, however, was deal- : n« with tlm company and not with the American Government. Just how far the Minister of Finance (Mr Nash) had got with_ the question during liis visit to the United States he could not say and until the return of Mr Nash at the weekend, there was little more he could say.