LONDON CONFERENCE

Evening Post, Volume CXV, Issue 108, 10 May 1933, Page 10

LONDON CONFERENCE

N.Z. DELEGATION

MR. FORBES & MR. MASTERS

LEAVING NEXT FRIDAY

A statement was made by the Prime Minister (the Right Hon. G. W. Forbes) last evening confirming the unofficial intimation made in "The Post" yesterday that Neiv Zealand's delegation to the World Economic Conference' would be led by the' Prime Minister and the Minister of- Industries, and Commerce (the Hon. R. Masters). Mr. Forbes also announced that the Ministers would be accompanied by Mr. Q. C. Rodda, Assistant Secretary to the Treasury, Professor A. H. Tocker, of Canterbury College, and Mr; C. A. Jeffery, private secretary to the Prime Minister The delegation will leave Wellington on Friday by the Rangitata. During Ac absence of Mr. Forbes from New Zealand the Minister of Finance (the Right Hon. J. G. Coates) wijl act as Prime Minister. "I desire to say," said .Mi^qrbes, "that in determining on this course, the Government considers *at» »»™1 portant as the Economic Coherence must be to the whole world, the gathering of representative Ministers from every part of the British Empire ri*o affords an opportunity for consultation wMcJ must Tot be *W«f^P"g.' larly in view of the rapid developments . Knnefction with the trade Rations of Great Britain, not only with the countries of the Empire but its foreign . customers who are competitors of Em pire producers in the ■ British market. Theware also other vitally matters directly Meeting Zealand which need discussion and decision, to which I will later refer. ; . ■ "No words of mine are needed-to emphasise the importance ;of, the Economic Conference, which to discuss frankly and, if possibly to, solve a most complicated' and difficult set of problems, And-on the practical and prompt results largely' depends whether the world is to drift on info economic chaos and general default, or whether, as the happier alternative, it will regain that confidence which will lead to restoration of prosperity. ; -,:,,. "Nature has not been unkind; . t&e problem is not one of famine, but ..of over-supply, and this surely is capable of solution now that all nations recognise the gravity of the B ituation,, when in spite of all measures so far devised by them, world, trade has been so. depressed that countries are; admittedly not far away from general economic collapse, with at i least thirty million of workers out.of employment." - ; THE MAIN PROBLEMS. , ■■ Mr. Forbes said the main questions for consideration at the World Conference might be briefly set out as follows: —. ■'■'<•-* ■/.■■■ " (a) Financial Questions: Monetary and credit policy; exchange problems; the level of prices;: the -movement of capital. . ■.-, . ■ ■ •■ '. , ; (b) Economic. Questions: Improved conditions of production and trade interchanges with particular attention to: —Tariff- policy; , prohibitions and restrictions of importation and exportation, quotas, and other barriers to trade; producers' agreements. " "The monetary objectives," continued Mr: Forbes, '' will undoubtedly be the restoration of an effective international monetary standard, and the general stabilisation, of currencies, combined with steps to bring about a higher level of world prices.. Such questions as war debts and other debts, the international use of gold and central banking policies , must also come up for consideration. ,On the economic ' side efforts will be directed towards lowering tariffs, and removing restrictions and hindrances to greater freedom ■ .of international.trade.- •. OUR ECONOMIC FUTURE. "New Zealand's prosperity depends on the vitality and soundness of overseas markets for its products; it is a "debtor country with obligations impossible to meet fully without a profitable return upon its'exports. ■-'■■ Every question on the Conference agenda bears upon cur own economic, future. "But, apart from these ■ questions, I visualise the valuable opportunity of discussing with the. representatives of the other Dominions of the Empire, and with British Ministers, many important questions of direct and immediate application, to our own difficulties. For example, questions of quota restric-* tions cm food products vitally concern us. • Our interests have also to be watched when, as is becoming quite evident,, the whole question of Empire preference will come under review. ■•'.■ "Another matter in which we have a live interest is that of embargoes imposed by foreign countries on our trade. An opportunity wijl be presented, for very useful discussions with representatives of these countries with a. view to a widening of the basis of distribution of our surplus produce, and in this connection the presence and co-operation of my colleague, the Minister of Industries and Commerce, will be most valuable. ", MONETARY STABILITY. '•'The reactions of the Economic Conference decisions upon methods of monetary stabilisation will, of course, directly affect New Zealand, which may be called upon to consider its own plans as a basis for its own monetary ■stability.' , '.'.■-. ' "So far as lay within its own power,. ■ New-Zealand adjusted itself to the drop in national income. ■" Severe retrenchment,', interestrreductipn measures, and" protection of the mortgagor .have assisted to relieve the position and to bridge the gap between costs and prices; and the unemployment problem has been and still is a constant and predominant concern of the Government, which can fairly claim that within the-limits of -financial resources (in this instance strained to the utmost) it'has done its best to relieve temporarily a difficult and distressing situation. "But the real and permanent solution of the, unemployment problem which practically every country is ai} present facing must depend upon, an'improvement in world conditions. Earnest hopes we centred universally in the forthcoming World Economic, Conference to. succeed in bringing about a substantial' improvement in conditions, which must inevitably . reflect itself in easing the unemployment situation in.New Zealand, and in thus enabling numbers of those, who are now out of work again to be placed in permanent occupation. jTHE RIGHT ATMOSPHERE. "The recent loan conversion -in respect to - our internal Public Debt indicated the willingness of our own people to meet conditions which imperatively demanded a reduction in the taxpayer's burden, and by their example they have, created the right, atmosphere for making proposals in j respect to the larger portion of our'indebtedness, which is domiciled, overpeas. ........ *'TMs question, involving t^9;iigbts

of investor^ outside the Dominion, requires careful approach, and can ,in the last resort be favourably ' settled only by direct negotiation with the representatives of the interests concerned. If success in reducing our overseas debt charges is to be achieved, it will only be possible! by •'responsible Ministers presenting the case in London. This question I regard as one of paramount importance to our own Dominion. "Unpalatable as many of our remedial measures have been—though the community as a whole has loyally accepted them—the Government has gone a long way towards meeting the situation within the Dominion-, and it is firmly-convinced that all the major measures now required to restore economic stability can .'only be devised at, and following, the Economic Conference. ' "In the subsequent adaptation by Parliament of New Zealand's policy to co-operate in anjr general plan for economic rehabilitation, the advantage of .personal discussions with British Ministers cannot be over-estimated. Opinions can in this way be expressed and advice tendered in a manner quite impossible by exchange of formal, communications between, the Motherland and the most distant part of the Empire. : . .. ... , ■ TWO REPRESENTATIVES NECESSARY. ■ "The Et. Hon. J. G-. Coates, Minister of Finance and Customs, will.be Act-ing-Prime Minister, during the absence of the delegation," concluded Mr. Forbes. "Having regard to the importance of the World Conference and thp serious problems to be considered, Cabiaet felt that.it warranted the attendance of both myself and the. Minister of Finance, but halving-regard to the difficult position in the Dominion Mr. Coates felt that he should remain .behind. "Many matters to be dealt, with by the Conference will be of direct concern to the portfolios which he holds, and we will keep in close consultation with him and with other colleagues at home in the matters affecting the Dominion which will be the subject of consideration by,the Conference."