3. Proposed Conference on i.iattoro concerning
ik^fi^-Ciflo Islands between _.H..iv^Oovemaonts
or the United Klni?lorat AuatraXia and
3
The Committee had under consideration paper I.A.G.610
on the subject or the proposed Pacific Air Conference,
Hi- Harry Butterbce     had no observations to offer on
the Air Ministry note;     but he thought it must bo for the
Jonfercnco to consider what was the best form of a joint
operatinp Company to suggest to the partner Governments.
There wbb, of course, the existing Trans-Tasraan organisation
but he was doubtful how fur that organisation would be
suitable, having regard to the fact that the shares of the
partners in it were proportional to their postal interest in
that particular line of communication and wore not related to
their status.
The Chairman pointed out that the new Corporation
which was now being formed ralftfit eventually becomo an Empire
Corporation subsuming existing Companies, and he took the
view which was shared by the Committee and by Sir John Rolth,
that regard should be had to this possible ultimate
development.
Sir Donald Banks      observed that the North
Atlantic Joint Operating Company which had been rather foroed
on the was not the happiest of models* and ho therefore
felt that the idea of the ultimate utilisation of the Imperial
Corporation should be kept In mind, and that, meanwhile,
the
the idea of using the Trans-Tasman organisation need not
neoeflfiorily be dismissed.     Its capitalisation would have
to be increased if it were to tako on the Trans-Pacific
service and this would provide the opportunity for a read-
justment of the share holdings of the respective countries.
.f;ir Harry Batterbeo felt that Australia -rould certainly
demand an equal status with Hew Zealand but if the facade of
the Trans-Tasman Company could be changed in the Ci.ainer
surgosted, he saw no reason why it should not form a
satisfactory intermediate organisation.   .:>ir Joim Keith was
anxious that Imperial Airways should be associated in the
development of the Pacific, and was   ipprehensive lest the use
of the Trans-Tasman organisation should involve a repetition
of the immense amount of negotiation necessary in the
oase of the Taswan service*   He agreed, however, that it
rai.rht be desirable to utilise it as an interim organisation,
and he added that a Director of Imperial Airways in Australia
had recently taken the view that an ultimate Jfrnpire Corpora*
tion might be achieved sooner if the arrangements for the
future followed for a time the pattern which had been
pursued in the past.
The Committee was informed that the immediate
urgency of the question had receded somewhat as the proposed
conference had been deferred until April; and it agreed that
in the meantime consideration of the detailed questions in
paper I.A.0.510 should be remitted to a sub-committee composed
of representatives of the Air Ministry, .Dominions Office,
Foreign Office, Colonial Office and Treasury vith air John
Reith.