TASMAN AIR MAIL.

Manawatu Standard, Volume LVII, Issue 206, 31 July 1937, Page 9

TASMAN AIR MAIL.

TERMS OF AGREEMENT. “THOROUGHLY SATISFACTORY. ’ ’ WELLINGTON, July 30. The statement by Sir Archdale Parkhill concerning the trans-Tasman air service was amplified by the Prime Minister (Rt. Hon. M. J. Savage) in a statement issued to-day. He said the statement from Sydney by the Australian Defence Minister was in conformity with the terms of the agreement arrived at by the Civil Aviation Conference between representatives of the United Kingdom, Australia and New Zealand, at Wellington, in September and October of last year. The terms were also further discussed in London during the period of the Imperial Conference.

“The agreement provides for the creation of a new operating company registered in New Zealand to conduct the trans-Tasman air service,” said Mr Savage. “The Governments concerned shall each appoint either a Government Air Commission or an existing company, or shall constitute a new company to represent their interests, and each commission or company so appointed shall nominate three directors of the operating company. In effect, this arrangement will result in each Government being represented on the joint board of the operating company, and the performance of the terms of the agreement •hall be supervised by three Government representatives, one to be appointed by each of the three Governments. “It is provided that the operating company shall be licensed to operate the trans-Tasman air service, and shall be granted contracts for the carriage of mail by New Zealand, the Commonwealth of Australia, and the United Kingdom. To enable the service to be carried on the three Governments shall make annual payments to the operating company, these payments to be subject to revision at the end of three years from the commencement of the service, and thereafter at three-yearly intervals during the continuance of the agreement. 4 ‘During the first three years ot operation,” the Prime Minister explained, “the three Governments concerned shall make contributions in these proportions: Australia, 23 per cent.; United Kingdom, 38 per cent., and New Zealand, 39 per cent. “The revenue from the postal rates to be charged to other countries during the service shall be apportioned to the three Governments on the basis I have mentioned regarding contributions to the operating company. “Although somewhat delayed . because of the necessity for three-cor-nered negotiations, it is throughly satisfactory to New Zealand. the operating company is to be under our eyes, and an important part or its services to be in close touch with the interests of the people. It is true that our part in the contributions is the largest, but then so is our, share in the distribution of revenue. It is understood that the percentages were arrived at after an estimation of the probable quantity of mails that will he carried, and the benefit ot the lervice to the respective countries.