GERMANY IN THE SOUTH SEAS

Taranaki Daily News, Volume LI, Issue 116, 7 May 1908, Page 2

GERMANY IN THE SOUTH SEAS

NEW GUINEA SHIPPING SUBSIDV PROPOSAL.

REDUCED BY THE REICHSTAG.

lloecived Otli, 10.47.p.m. Berlin, May li. The debate on the New Guinea mail subsidy led the Reichstag to eliminate the proposed services between German New Guinea and Singapore, and reduce (lie proposed additional grant of i-20,0UU in aid of the so-called Australian-Japan-

ese line to £11,500. llerr Ivanilz (Canservative) uigui that in view ul the Empire's financial embarrassments, strict economy was n.. lierative, Up to the present, the North Herman Lloyd's subventions totalled ■>■">oo 000. The company, there! ore, was scarcely a necessitous undertaking. lien* Jlormaun, Radical Deputy foi Bremen, declared that unless the comreceived further liuvcrii.mm assistance, British shipping would benefit !>V the consequent decrease in efficiency oil Hie part of the company, winch oug.it to be subsidised as long as the services

were not remunerative. llerr Deniburg declared that the Bill was all act of colonial policy, and argued that the commercial prospects oi German New Guinea warranted the outlay. lie emphasised that the German colonies in the South Seas imported 150,000 sterling worth of German goods. The prosperity of the islands, he said, would increase next decade, when the copra trade was fully developed. Received oth, 11.40 p.m. Berlin, May

llerr Dernburg, continuing, said the company's services in the South entailed a loss. It was highly important to retain regular communications between Australia, German New Guinea and Germany. Increased trade implied increase in Customs. Australian competition in the South Seas was very keen, and this competition must drive tliem out of the field, since it would seriously resriet the market for German goods unless large and fast German steamships were available to maintain communication with the German colonies. He added that if the German Hag disappeared, it would create a bad impression. The subsidy was asked in the interests of the German South Sea islands, lest for the sake of a paltry sum tile Hag .should lose the respect whereto it was entitled.

DEFINING NEW GUINEA BOUNDARIES.

lleceived 7th, 12.25 a.m. ; Berlin, May 6. The German semi-official telegraph agency, in recording the opinions of Australian newspapers relative to the Cologne Gazette's suggestions in connection with New Guinea, adds that Germany, by virtue of the control of the Hower c'ourse of tile river Hira, holds the advantage, and it is for lit>r, rather than Australia, to impose conditions in any coming negotiations