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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

United Kingdom ,   pp. 1-135 PDF (51.1 MB)

Page 98

a fair deal in that it is prevented by United States law from partici-
pating in the Honolulu-United States traffic and as a result of United
States subsidies is being seriously prejudiced not only in the trans-
Pacific trade but also in the Tasman trade. They realise the political
difficulties in the way ot the admission of other than American ships
to the trade between Honolulu and the United States. As indicated
in the preceding paragraph they do not propose to restrict the through
traffic carried on American ships. But they are not prepared to see
the situation continue under which, by reason of subsidies paid by
the United States Government, the most valuable part of the local
traffic between Australia and New Zealand is diverted from the un-
subsidised Australian and New Zealand lines. In the circumstances
they feel that the Matson Line should meet them on the third of these
points to the extent of withdrawing voluntarily from the purely local
trade between Australia and New Zealand. In that event it can be
anticipated that the Australian and New Zealand Governments would
not proceed further with the application of the legislation under
  WAsINGToN, June 16, 1937.
  The, Chairman of the Maritime Commis8ion (Kennedy) to the
                        Secretary of State
                                       WASHINGTON, July 1, 1937.
  MY DEAR MR. SECRETARY: I have received your letter of June 18,
1937 99 transmitting a memorandum entitled "Shipping Situation
in the Tasman Sea," left by Mr. Chalkley and Mr. Keith [Officer]
of the British Embassy on the occasion of their meeting with Mr.
Dunn of the State Department on June 16th last. I have read that
memorandum with much interest, and enclose herewith a memoran-
dum in reply, which is self-explanatory.
  The New Zealand statute and the proposed Australian legislation,
if put into effect, would by its discriminatory provisions divert a dis-
proportionate flow of passenger business to the new liners which the
British are contemplating building for the south trans-Pacific service.
The British memorandum states that the Australian Government now
proposes to introduce amendments to the pending legislation to insure
that it will not affect through-traffic on the Matson Line. While in
view of the present itinerary of the Matson Line, no American line
would be affected by the restriction in the New Zealand statute it
I Not printed.

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