§ 76. Mr. SIMMONDSasked the Under-Secretary of State for Air to what extent His Majesty's Government is bound to Imperial Airways, Limited, on routes not at present operating?
§ Sir P. SASSOONPerhaps I shall best answer my hon. Friend's question by saying that His Majesty's Government is under contractual obligation to confine to Imperial Airways the grant of subsidy for services in Europe and on the routes to the East. As regards routes in the Mediterranean area and in Africa, there is also a contractual obligation to give the first offer of subsidy to that company.
§ Mr. SIMMONDSIs the House to understand that on all other routes new companies will stand in exactly the same 553 favourable light as Imperial Airways, Limited, in connection with any possible negotiations with His Majesty's Government?
§ Sir P. SASSOONThe policy of His Majesty's Government is to make use of this one great commercial company under proper guarantees of efficiency rather than dissipate available supplies in other ways.
§ Mr. SIMMONDSDoes not the Under-Secretary understand that that policy is preventing a large number of desirable companies, including great shipping companies, from undertaking trans-oceanic services from this country to South America and to North America?