and some move looking to co-operative action in this direction seems to be indicated. The obstacles which confront any effort to work out mutually beneficial co- Operation are not easy to overcome. Some of them might be summarized as follows:— The tendency of both nations to adhere to the principle that their respective coasting trades should be reserved to ships of their own registry. Seasonal and one-way character of the traffic. Disparity between Canadian and United St ates port charges. Disparity in subsidies and subventions, paid by Canadian and United States Gov ernments to domestic water carriers for mail service, etc. Differential in wage levels between crews of Canadian and United States ships. A number of proposals have been advanced. It has been suggested that an effort be made to take advantage of lower transportation costs, on trafhe moving between United States interior points and Alaska, afforded by the rail connection to Prince Rupert, and that if no United States water carrier interested in providing the service between the Prince Rupert railhead and Alaskan ports can be found, then the Canadian steamship lines might be permitted to provide such a service. Present arrangements in Prince Rupert provide for the use of facilities there for inbound assembly and furtherance to United States points of fishery products from Alaska. No more formality than has been found Necessary in carrying out the above arrangement should be needed to set up and Operate at Prince Rupert a Foreign Trade Zone (Free Port) for the handling in bond of goods moving in the reverse direction, from United States interior points to Alaska. Canadian ships are designed for and are well adapted to the passenger trade, and are superior in speed and appoint- ments to those of the United States, which are primarily freight carriers. The suggestion has, therefore, been made that in return for access by the United States lines to the local freight business of the British Columbia Coast and the Yukon, Canadian lines might be given access to the local passenger and express business of southeastern Alaska. It may be concluded that any practical approach to a solution of the problem of ocean transportation in the interest of both countries in the North Pacific should be one that will produce savings to the carriers on both sides. Automobile Ferry The newly developed highways in Yukon and Alaska may be expected, whenever post-war conditions permit, to offer considerable attraction to motorists drawn by a desire to see some part of these lands of mystery and romance. The route to Yukon and Alaska over the Alaska Highway, the only road access from the continental highway systems, is long. In some part the terrain it traverses is barren and featureless and even under full maintenance it may offer some difficulties to the pleasure driver. Moreover, since few drivers are inclined to follow the same route on their return journey, it may be expected that most motorists will want to make either their entrance or their exit through the coastal gateways. Present accommodations for auto- mobiles on passenger ships Operating between Seattle, Vancouver, Prince Rupert, and Skagway are limited, and expansion of these facilities is likely to be demanded. Plans now being drawn for new passenger vessels are providing some extra space for the transportation of tourist automobiles, but such arrangements as are at present visualized would be far from adequate to meet the increased demand that many people expect. Various suggestions have been advanced, One proposal was the provision of a semi-weekly ferry service each way during the summer months, between Prince Rupert, Juneau, Haines, and Skagway. Such a service would enable auto- mobile tourists from the south and east who have driven through British Columbia over the Cariboo Highway thence to Prince Rupert, to embark at the latter point. They would disembark at Haines and reach the Alaska Highway over the Haines Cut-off. For this purpose, specially designed craft with substantial automobile capacity have been proposed. Another Suggestion was that certain types of released naval craft, such as beach landing craft, be adapted for use as ferries. This subject is developed further under the heading of “Highways”. The question of the future maintenance and possible extension of the Alaska Highway and the Haines Cut-off, and of the establishment of facilities for the servicing of S cars and the accommodation of tourists alor ig the highways will have to be determined before any serious consideration can be given to plans for tt ne water carriage of highway vehicles between road terminals on the Pacific Coast. [95 ]