THE VANCOUVER SERVICE.

Taranaki Daily News, Volume L, Issue 61, 16 December 1907, Page 2

THE VANCOUVER SERVICE.

WITHDRAWAL OF CANADA'S SUBSIDY. IS IT RETALIATIONY Received December 15, 4.52 p.m. London, December 14. Although the Ottawa Free Press describes the cancelling of the mail subsidy as retaliation against the Commonwealth, The Times' Ottawa correspondent declares that this opinion is not endorsed, for it would be absurd on the part of Canada to retaliate on her sister > colony when Mr. Deakin had promised to negotiate for better trade arrangements after the Commonwealth tariff is settled. .ail iJHlifti Silt .lAMEK MILLS INTERVIEWED. Per Press Association. Dunedin, Saturday Night. Interviewed here, Sir James Mills doubted whether the statement that the Vancouver subsidy would be discontinued owing to the Federal tariff was correct. He pointed out that quite recently the Canadian Government signed an agreement with the Union Steamship Company to maintain the service for another two years. If it was now decided to discontinue the subsidy the probabilities ■were that this contract would be allowed to run its course.

The lines on which Canada vainly asked the Commonwealth for preference were:—Bicycles, timber, furniture, leather, boots, siloes, chairs, agricultural implements, harvesters, apparel, and cotton piece goods. According to figures lately published in Australia, the present subsidy to the Vancouver service is £OO,OOO a year, divided as follows:—Canada, £97,090 Ills 8d; Commonwealth, £20,626 10s; Fiji, £2282 5s 4d. In .Tune last the Commonwealth Post-master-General announced a renewal of the contract on these terms, for two years, with the Union Company; but the contract could be terminated at the end of tbe first year at the option of the Commonwealth Government if the latter gave four months' notico of exercise of that option. ' It is not clear at whnt date Canada's discontinuance will take cfi'ect, nor what relation this action hears to Canada's advocacy of a very much faster and more costly All-Red roue.