i) 
RecoMmeENDATIONS OF MINORITY: 
Whilst I am in agreement with the other members of the Committee as to their recom- 
mendations concerning the conditions under which tenders for the Pacific Islands shipping services 
should be called, viz., that contracts should be for a period of five years, and that at least twelve 
months should elapse between the dates for the acceptance of tenders and the inauguration of the 
services, and also that the vessels to be employed should be of adequate capacity to properly cater 
or the passenger and cargo business offering, and have an economic speed of at least twelve knots, 
[ desire to go further and recommend that the Commonwealth subsidy should be available only to 
Australian firms employing white crews. 
In my opinion, the best interests of Australia, and of these Territories and islands will be 
served hy the continuance of separate services to (a) Papua; (b) New Guinea : (c) the British 
Solomon Islands ; and (d) the New Hebrides, Norfolk, and Lord Howe Islands—somewhat on the 
ines of the current routes, but omitting entirely the Rabaul-Solomons service. The calling of 
senders for such services separately, with the conditions already enumerated, would, I consider, 
1ave the effect of stimulating competition amongst local companies, and result in more favorable 
passenger and freight rates, which are urgently needed. 
As a result of my visit to the islands and a careful study of the evidence placed before the 
Committee, 1 am unable to subscribe to the recommendation that there should be only two main 
services, viz., one to serve the Territories of Papua and New Guinea, and the other to combine 
he Solomon Islands with the New Hebrides, Norfolk Island and Lord Howe Teland 
A combined service to the Territories of Papua and New Guinea was not urged nor supported 
by the local Administrations, nor by the commercial representatives. Such a service was conducted 
some years ago, but was abandoned under pressure from the local Administrations, as it was found 
that the interests of one Territory were subordinated to the other and difficulties in the cargo and 
passenger traffic resilted. Any action designed to reduce the ports of call on the main services and 
increase the number of places to be covered by local services will not satisfy the needs and wishes 
>f the Administrations or of the residents generally. The benefits which it is claimed are Likely 
to accrue to the Territories by opening the way for a through route, will be largely counteracted by 
wdditional coastal rates and transhipment charges. I consider that a three-weekly combined 
service catering for Papua and New Guinea, with a view to securing connexion with south-east Asia, 
s not justified. Whilst such a connexion would be of benefit to the Territories by providing 
reduced freights on rice and gunny bags, a three-monthly service through to south-east Asia would 
ve ample to provide for their requirements in such goods. As a matter of fact, special freights on 
shese commodities are already in existence—enabling them to be landed in the Territories almost 
as cheaply as by a direct service. Further, as there is no market for copra in the East, little outward 
cargo from Papua and New Guinea would be available. as this product would continue to be shipped 
yverseas ‘bv chartered vessels 
There 1s no definite evidence in support of the proposed route combining the Lord Howe 
[sland-Norfolk Island-New Hebrides service with the ‘Solomon Islands. The Solomon Islands 
Administration strongly urged the maintenance of the existing service, which was entirely satis- 
actory and adequately met local requirements, and for which it was prepared to increase its contri- 
sution from £1,800 to £3,000 per annum. The Committee's proposal does not provide for a direct 
service, but adds nearly 700 miles to the route—necessitating several days extra running, with the 
attendant inconvenience and delay to persons travelling between Australia and the Solomons. 
Moreover, passengers booked for Lord Howe and Norfolk Islands would monopolize the greater 
sortion of the passenger accommodation to the exclusion of passengers for the Solomon Islands, 
and the accommodation necessary for the nearer islands would be unoccupied for the major portion 
~f the rote 
The Solomon Islands trade is valuable to Australia. Its exports of copra to a large extent 
supply the raw material for an important secondary industry in the Commonwealth, and the 
majority of the people there and the greater portion of the capital invested is Australian. for 
hese reasons, I consider that the interests of the Solomons and Australia are best fostered and 
developed bv a direct exclisive service as at present. 
The service to the New Hebrides is admittedly maintained only for political and inter- 
nternational reasons, and if such considerations demand the retention of a service. such service 
should net be operated to the detriment of the Solomons. 
The recommendation of the Committee that there should be no increase in fares and freights 
by the adoption of the routes proposed would have the effect of partially nrotecting those who