TWO ESSENTIALS

Hawke's Bay Tribune, Volume XXI, Issue 303, 7 December 1931, Page 7

TWO ESSENTIALS

TARIFF & WHEAT QUOTA DISCUSSIONS IN THE HOUSE. STATEMENT BY NEVILLE CHAMBERLAIN. (British Official Wireless. j (Received 7, 12.30 p.m.) Rugby, Dec. 5. Further discussion of tho measures contemplated to meet the economic situation will commence in the House of Commons next week. Before the House rises for the Christmas recess on Friday, the Government will make a definite announcement on its agricultural policy which it is anticipated will include acceptance not only of the principle of the quota for home-grown wheat but of the quota of wheat imported from the Dominions and used by British millers. This will leave the way clear for discussions regarding details with the Dominions before tho Imperial Economic Conference assembles at. Ottawa in July. The Government has also allocated time in the House of Commons for a debate on Wednesday on the application of the emergency duties, under the Abnormal Importations Act, to imports of iron, steel and cotton goods, particularly cotton piece goods. The tariff question was referred to by Mr. Neville Chamberlain at Newport, when he frankly welcomed the desire expressed by other countries for a friendly mutual discussion of tariffs, but he said that no binding agreement could be concluded until after the Ottawa conference. Britain must claiii. the right exercised by other countries to direct her fiscal policy according to her own interest. The recent French surtax on British exports was peculiarly damaging to the British coal industry because it did not apply to some of their principal competitors, who were quoting their prices in depreciated sterling, and it came on top of a strict import rationing system. The British Government had made strong representations to France, and he trusted that they would very shortly receive due consideration. POSITION OF STERLING. Mr. Neville Chamberlain said that he saw no reason why the depreciation of, the value of sterling should be substantial or prolonged, but a satisfactory settlement of the reparations question would do more than anything else to remove the nervousness that was now so widespread over the world. Various causes which had led to tho recent depreciation in the external value of the pound were discussed by Mr Neville Chamberlain, who said that one of the chief causes was perhaps the general uneasiness of foreign holders of sterling balances in London who saw hanging over Europe a cloud of uncertainty about the future, and who thought they would be more comfortable if they had liquid resources at home, where they would be available at short notice. Ho had no doubt that those foreign holders of sterling balances who had been taking their funds away from London would presently find that they had made a bad bargain. FRENCH “WAIT AND SEE” ATTITUDE. (United Press Assoelatton—By CableCopyright.) (Received 7, 8.40 a.m.) London, Dec. 6. A Central News Paris message says that Britain has replied to the French request for negotiations in regard to tho customs duties, admitting the principle of amicable conversations, but expressing the opinion that premature duties cannot bo modified at the moment Both Governments therefore await a more favourable opportunity. BRITAIN’S GOLD POLICY. The “Observer’s” diploniaic correspondent, in reference to the stabilisation of the pound, says that' British Ministers told M. Flandin that this is not to be effected until three conditions are fulfilled: (1) The British trade balance must be restored; (2) the reparations problem must be settled on a permanent basis, and (3) a guarantee must be forthcoming that the international monetary policy will not again be misused as an instrument against the pound if and when it is restored on a gold basis.