Abandoning the traditional policy of free competition, the British Government has heeded the plea of British shipowners and shipbuilders and has decided on a system of subsidies t> meet subsidized foreign competition. Thi decision has been forced on British shipping interests by the almost universal system of state-aid for ping introduced in the last fey years and which has proved detrimental to British activities. The British Chamber of Shipping recently reported that more than 30 countries in the world now give government assistance to their mercantile marines, and only Britain and a few others are exception to the rule, and suffer accordingly. Under the new British Government scheme, financial assistance will be made available for tramp shipping, and appropriate grants will be given to assist owners of tramps and cargo liners who order new ships during the next few months, and £10, 000,000 will be made for loans to shipowners over a period of two rs for new tonnage. Another £2,000,000 will be provided, with Parliamentary sanction, for the purchase of suitable vessels on the United Kingdom register which, still capable of service, would otherwise? be sold to foreign owners for breaking up purposes. As regards passenger liners excluded from these foregoing conditions, an advisory committee will be established for two years to examine and advise the Government on requests for assistance from liner companies suffering {rom subsidized foreign competition, The wisdom of this decision, in view of existing conditions, will not be' challenged. Shipping interests have been for some time attempting to impress on the Government the necessity for such a step, and while there is a feeling that the decision has been taken rather late in the da, and it will be two years or so before its effect will be appreciatively felt, yet it will give imte confidence to shipowners that the Goy-ut is supporting them in their efforts to foreign competition, and maintain the volume and prestige of the British shipping. Another important aspect of this decision hinges on the vital necessity of maintaining an adcquate mercantile fleet in view of uncertain political conditions existing in the world. With out an adequate merchant fleet Britain, dependant on overseas sources for so much of he~ uppiles, is at the mercy of other countries better equipped, and this applies also to the Far East where the expanding state-aided Japanese mech cantile marine has progressed by leaps and bounds as a world ocean carrier. The Imperial Shipping Committee emphasized this point i a recent report which urged better equipment for British ships, and a greater devolution of enagement, including more authority for tern representatives. The report stated: "The involved concern naval and economi: ence in time of peace and war. What Sin-re is to the Navy and Air Force, that the markets in the Orient are to marine. Th prosperity of British mercantile banking intere depends on the ability of British merchant ping to keep its share in the carrying trade Eastern waters. sion of the Japanese authorities in to reopen the inner harbour, and perird party neutral shipping to make use of the wharves is welcomed as one of the real contributions which Japan has made towards a better understanding of her position. It would have been better if the concession had been made in the absence of those financial restrictions which still hamper foreign trade, other than anese in North China, but on the principle that half a loaf is better than no bread, it is perhaps just as well to accept this gesture as an earnest of future Japanese intentions. The removal of discrimination against the trade of third pa: serve greatly to h those other Po relations which are watching developments in this part of the world with no small degree of anxiety, and irritation. It i to be hoped that the reopening of Tsingtao will pave the way for further improvements in regard to the position of nationals not politically involved in these hostilities. It will be rome: ered that the restoration of Seekingjao to the Shanghai Golf Club caused a most favourable impression in foreign circles in Shanghai, as did, so much earlier, the reopening of Hungjao. Without tackling the major questions there is still a large number of matters with regard to which the Japanese could show the same grace.
ye been mentioned so frequently that to detail them now would be superfluous, but as it has been pointed out on numerous occasions, a great deal of the criticism about which se complain would be completely removed if there were more tangible evidence of a real desire on the part of the Japanese to recognize foreign interests and rights in this part of the world to a greater degree than has rent up to the present, The Tsingtao is, however, heartily welcomed as a step in the right direction, and, it is hoped, as for further improvement.
Text read from the printed page and cleaned; old type leaves the occasional error.