PACIFIC POWERS.

Auckland Star, Volume LXVII, Issue 233, 1 October 1936, Page 27

PACIFIC POWERS.

PACT IN THE OFFING. I HANDLING THORNY PROBLEMS OFFICIAL BRITISH REVIEW. (From Our Own Correspondent.) SAX FRANCISCO, September 5. "One, of the most interesting conferences I have ever attended," remarked Mr. Adrian C. Moreing, Conservative M.P. for Preston, Lancashire, and secretary to the Chinese Committee in the House of Commons, London, after his return to San Francisco, after participating prominently in the sixth biennial sessions of the Institute of Pacific Relations, held at Yosemite, California, where 250 delegates from eleven countries included some of the world's leading statesmen, New Zealand and Australia being represented by stalwart delegations. The British delegations was thoroughly representative, including Lord Snell, chairman of the London County Council and Leader of the Opposition in the House of Lords; Hon. A. V. Alexander, M.P. for Sheffield, former First Lord of the Admiralty; Alderman Sir Frederick Hayward, Mayor of Stoke-on-Trent, and chairman of the British Co-operative Movement; General Sir Kenneth Wigram, Chief of Staff of India; Rear-Admiral A. H. Taylor; Mr. C. R- Buxton, former M.P. for Accrington, Lancashire; Mr. Archibald Rose, formerly in the British Diplomatic Service'in China; and Mr. Hamilton W. Kerr, M.P. for Oldham, Lancashire, private secretary to the Secretary of State for War. Most of the conference deliberations were held in camera, but Mr. Moreing consented to give the first authoritative statement on the main topic of the conference, "The Peaceful Adjustment of the Various Questions Affecting the Pacific." In an exclusive interview with the correspondent of the "Auckland Star," Mr. Moreing, who is a member of the well-known firm of British mining engineers of Bewick and Moreing, of London, South Africa and Australia, said: "One of the most important subjects discussed was that regarding the textile industry of Lancashire, faced as it is by Japanese competition forced 011 us largely by Japan's desperate efforts to gef export markets in order to pay for her imports of raw materials. Japan's Expansion. "The British people do not object to Japan's legitimate trade expansion, but we do most emphatically complain of certain methods which the Japanese adopt, such as copying designs and illegally using our trade marks. We made "this fully clear during the full discussions at Yosemite sessions, and it was mentioned that cases had been published in the Manchester newspapers, with illustrations, showing how the Japanese had taken designs and trade marks without our authority. "We of the British delegation made our position clear, and indulged in some very plain speaking, which sank deeply into the minds of the Japanese delegates, who, at the outset, were not inclined to give direct replies to our accusations. We had a discussion as to the best, method to regulate Japanese trade in the colonial markets in this textile battle, which resulted in three methods 'being outlined. "The first method was that of a tariff, which really means a prohibitory tariff; secondly, import quotas by the Government of the importing country; and, thirdly, export quotas, which would be imposed by a manufacturers' association in the exporting country after consultation with manufacturers of similar goods in importing countries. "It was realised that this last method had the advantage in that it would be conducted by trade organisations free from Government interference, and in the specific case of Japan it would be facilitated l>y the large number of trade associations which, recently have been formed in Japan. "The British representatives had several discussions 011 the subject with the Japanese freely participating in the deliberations, and it was agreed that 011 the whole the third method provided the most hopeful prospect of a solution acceptable to both parties concerned. _ "On these trade questions both the British and the Japanese were impressed by the mutual expressions of goodwill and the desire to help each other as voiced by both sides. 611 the trade question the British were convinced there was a possibility of reaching an arrangement with the Japanese. Stabilising Currencies. "Representatives of the various nations declared the monetary policy of the U.S.A. had had a most unfortunate effect on the Far East, and evidence was presented showing that where the artificially high price given to silver by the U.S. Treasury the purchasing power of millions of Chinese had been disastrously reduced. "However, the view was expressed that the Chinese new monetary policy was founded 011 a firm basis and the delegates considered the prospects in this direction were of a decidedly favourable character. "The Dutch delegates, who were supported particularly by their British and American colleagues, expressed the view that the best term results could be achieved by a stabilisation of currencies, preferably on a metallic basis and by lowering of tariff barriers. The Dutch delegation, although much smaller in numbers than those of most other countries, impressed all who met them bv their great ability, more especially by the valued contributions by Dr. J. T. Moll and Mr. G. A. Dunlop, both of Amsterdam. Sino-Japanese Deadlock. "One of the outstanding factors of the conference was the fact that the Japanese considered that any question dealing with the future of Mancliukuo must start from the basis that the Japanese occupation is recognised and they also claimed frith vigour that Japan's interest in North China should be taken into consideration, with the stipulation that the position at present existing in North China must be used as a basis for future discussion. "The Chinese delegates held out strongly that should any discussion eventuate it should be on a pre-1931 basis. The -Japanese spokesmen's com- j plaints against the Central Chinese Government at Nanking' and their' allegations that China was to a great extent rent by internal disorder made a bad "impression on their listeners. The Japanese delegates invariably declared: 'If we have to go and occupy bits of China, it: is Jjecause there is no law and order there at all.' "Chinese delegates protested strongly, against the widesprad smuggling in North China, which is largely being lied on by Japanese and Koreans, and •

in this they were warmly supported by | their British - confreres. Personally, I was especially interested in this matter, inasmuch as I had introduced many phase,-; of this grievance 011 the floor of the House of Commons in London. 1 "Still, 011 the political side, anxiety was voiced in relation to probable developments in the Philippines consequent upon the American withdrawal. A splendid suggestion was advanced that there might be a mutualisation pact of the Philippines guaranteed by the great Paeilie Powers, and it was agreed, ■should such a pact be brought I into being, it would prove to be the ; first step toward securing a peaceful solution of Pacific problems. Collective Security. "Following up this line of thought, a further proposal was made that in the ' interests of collective security it might be possible to devise a regional pact for the Pacific which would embrace those nations with interests in the Pacific, which would include (freat Britain, Canada, Australia, Xew Zealand, France, Holland, Kussia, United States, Japan and China. Such a pact would be modelled 011 the provisions of the League ; Covenant, providing machinery for the declartion of punishment of an aggressor. It was pointed out that under such a regional league it would be possible for military sanctions to be applied by the signatory Powers of the regional pact, and economic sanctions would be applied by those countries which, while not members of the regional organisation, would be members of the League of Nations or regional organisation in other parts of the world. "This proposal gave rise to extensive discussion, and, while sympathetically received, it was felt that its prospects of adoption' were remote, owing to the isolationist policy of the United States | and to some extent the British Dominions. "Another proposal was advanced that there might be a Pacific Union, an unofficial body 011 the lines of the PanAmerican Union, which could meet at intervals and discuss Pacific problems under the aegis of their respective Governments. Kealising such a conference would have no practical effect, the proposal of a mutualisation pact for the Philippines was regarded as the most promising and immediate step in peaceful adjustment of Pacific difficulties. Chinese Sparkling Diction. "The Chinese delegates made a impression on the confernce with their undoubted ability and eloquence, Mwf : complete mastery of the English lan- j guage, in which latter respect they were : in marked contrast to the Japanese, who ' lacked the perfect knowledge of the English tongue gained by the Chinese in English and American universities. "The general background of the conference was the sincere desire to get to understand each other's point of view, and an endeavour to find a peaceful solution of the diverse problems at present agitating the Far East. This conference attracted more world-wide attention than any of its predecessors, and its assembling brought together a much more influential representation of the nations than hitherto. British Pacific Shipping. "Under the discussion of general trade questions, the British delegation raised the question of shipping subsidies and pointed out the serious effects which British shipping interests were experiencing in the Pacific through the opera-1 tion of foreign subsidised lines. Eventu- j ally it was felt that as long as tax- | payers in other countries were prepared j to be taxed to pay such subsidies to | "bolster trade that a change in the policy j of subsidies was unlikely. Some of the J delegates were outspoken in their declarations that high tariffs, Government subsidies, Government interference in industries, and Government control of ail unanchored currency system were amongst the most serious evils affecting the world to-day, and the sooner they could be eliminated the better for the world generally." , Sir. Moreing disclosed that he himself discussed the United States finan- , cial policy, strongly advocating a return , to a gold standard, "although," he said,! "not to the old gold standard of prc--1931." He also urged a minimum of Government interference with industry, and objected to any Government attempting to fix any price levels. In this he was supported by the Dutch 1 delegation, and by some members of the ; Canadian and United States delegations, j After a leisurely trip through the ' southern States, Mr. and Mrs. Moreing j expected to depart from New York for . Southampton and his home in London,! reaching there about September 20. He, said a report would 'be filed in London ! at Chatham House eventually, and he j anticipated that important results would ; accrue from the Institute of Pacific i Relations conference at Yosemite, Cali- j fornia. I