GATHERING- OF NATIONS

Manawatu Standard, Volume LIII, Issue 166, 13 June 1933, Page 7

GATHERING- OF NATIONS

KING OPENS CONFERENCE

BRITISH PREMIER SAYS: "WE MUST NOT FAIL”

WAR DEBTS MUST BE SETTLED

(United Press Association. —By Electric Telegraph.—Copyright.)

Received June 13, 10.10 a.m

LONDON, June 12

His Majesty the King declared the World Economic Conference open at 3 o’clock this afternoon, when his speech was broadcast throughout the world. His -Majesty said: “At this time of widespread economic distress it is with a feeling of deep responsibility that I welcome you to this country. I wish to express my confidence that this common endeavour will have beneficial results.”

The greatest gathering of statesmen ever assembled attended the opening in the Geological Museum.

The King was followed by the President of the Conference, Mr Ramsay MacDonald, who said, among other things, that the question of war debts must be settled once and for all. “We must not fail. We are determined to succeed,” he said.

MOMENTOUS_ASSEMBLY. GREAT PUBLIC INTEREST.

Mr MacDonald said: “The war debts question must be dealt with before every obstacle to general recovery has been removed and it must bo taken up without delay by the nations concerned. Lausanne has to be completed and this vexed question settled once for all in the light

HIS MAJESTY’S ADDRESS

(British Official Wireless.) Received June 13, 11 a.m. RUGBY, June 12. When His Majesty the King opened the World Monetary and, Economic Conference ho addressed the representatives of sixty-six nations containing two thousand million people. Three hours before the Conference began, a great crowd, notably cosmopolitan in character, had assembled outside the entrances and the King, who drove from "Windsor Castle, was loudly cheered on his arrival, and as he left. As the King entered the Conference, escorted by Mr Ramsay MacDonald, Sir Eric Drummond, Sec-retary-General of the Leagce, and M. A vend, Secretary-General of tire Conference, everyone present rose and remained standing while His Majesty delivered his address.

of present world conditions. “This Conference is a sequel to the work done at Lausanne last year, when, by a conditional agreement on how to deal with war debts and reparations, Europe was saved from immeTliate financial collapse, said Mr MacDonald. The world could not right itself without international agreement. The last few years had proved that a puroly national economic policy impoverished other nations and those who pursued it. The nearer they could make the world ail economic unit the better would it be for each nation. The Prime Minister stressed the fact that rapidity of agreement was essential to success.

One of Mr MacDonald’s best declamations was undemonstratively received. It was that the war debts question must be settled, indeed, taken up immediately and the seal put on Lausanne’s labours.

He referred to the work of the League of Nations, which he had always followed with the keenest appreciation. He said that, without the League and its ideals, he doubted whether the Conference would ever have taken place. He also recognised tire spirit of helpful co-operation which had brought the representatives of States which were not members of the League to these discussions, and extended a special welcome to the Empire delegates. Interposing a passage in French, the King said:

Mr MacDonald trenchantly condemned self-sufficing economic nationalism and again and again affirmed that ‘‘we must not fail.” He was equally insistent on the need for speedy relief.

BUREAU SET UP. On the proposal of the President the Bureau of the Conference was constituted as follows: —One representative from the delegation of each of tire following countries: Argentina. China, Czeclio-Slovakia, France, Germany, Great Britain, Hungary, Italy, Japan, Mexico, the Netherlands. Spain, Sweden, the United States, the Union of Soviet Socialist Republics, and one British Dominion (Canada). The bureau held a private meeting at the end of the plenary session. The Conference resumes to-morrow when Mr Cordell Hull, United States, will be among the sneakers. NEEDS OF THE EMPIRE. The Conference is unique because it was inaugurated without a single nation suggesting a vestige of policy. There is at least one point on which the Empire delegates are in strong agreement uplifting commodity prices. General Smuts revealed that it is the crying need of his country, and found Australia and New Zealand were similarly obsessed. KING’S SPLENDID KEYNOTE.

“It is with very profound emotion that I see around me this august assembly, which seems so vast, but which represents an infinitely vaster contemplation—the hope and wishes of the entire world, a world that is in an unquiet state, and for you who, from to-day, begin the work of restoration the task is heavy. Tt is not to be achieved except through goodwill and sincere co-operation. I extend my hand to you and with all my heart I wish that your efforts will he brought to the happy result which the peoples of the world await with impatience.”

HOPE IN REAL DESIRE. Continuing in English, the King said that evidence of a real desire to reach an agreement gave him hope. That all the nations were suffering from a common ill was shown only too clearly by the unemployment figures, the meaning of which, in terms of human suffering, hpd been his constant concern in recent years, as it had been that of everyone present on whom the responsibility of government had rested.

General comment draws attention to tlie quiet simplicity of the opening; indeed the silence was almost grim. All agree that the King see a. splendid keynote with which Mr MacDonald’s supplementary reiteration against failure was in keeping, hut as yet it is too early to find any indication of reaction. , Mr, Cordell Hull says:, “We have some surprises to spring.” Tlie delegates wore morning dress and tho only touches of colour were two Arabian sheiks in flowing robes and cowls, and the inescapable heliotrope creation of General Sniuts’s woman secretary. . The speeches will begin at 10.3 U o’clock to-morrow morning.

“It cannot be beyond the power of mail so to use the vast resources of the Avorld as to ensure the material progress of civilisation. No diminution in those resources has taken place. On the contrary, discovery, invention and organisation have multiplied their possibilities to such an extent that the abundance of production lias itself created a neAv problem and, together Avith this amazing material progress, there has come a new recognition or the interdependence of nations and tho value of collaboration betAven them. Now is the opportunity to harness this neAv consciousness of common itiintorcsts to'the service of mankind.”

POOR RECEPTION IN AUSTRALIA

Received Juno 13, 10.5 a.m. SYDNEY, June 13. The broadcast of the King’s speech shortly ~ ter midnight was unfavourable to reception in Australia.

Tho King concluded: “I pray that tho results of your labours Avill set the Avorld once more on the path to prosperity and ordered progress.”

THE EMPIRE DELEGATES

The King remained while his speech was translated after whch lie left, escorted by the Prime Minister.

CONFERENCE AT DOWNING

STREET.

PRESIDENT’S DETERMINATION

Mr MacDonald, on returning, addressed the Conference and briefly outlined tho state of tho world that had made the Conference necessary.

LONDON, June 12. The Empire delegates, including lit. Hon Mr S. M. Bruce, Sir Thomas Wilford, Mr 11. B. Bennett (Canada) and General Smuts (South Africa), met at Downing Street under tho presidency of Mr llamsay MacDonald and had a discussion with Cabinet Ministers with the object of finding to what extent unity on Imperial aims was possible in order to enable a clear understanding when the voting at the Conference is readied. Several further meetings will be held during tho Conference.

“The economic life of the world,” he said, “has for years been suffering from a decline which has closed factories, limited employment, reduced tho standards of living, brought some States to tho verge of bankruptcy and inflicted upon others recurring Budgets that cannot be balanced.

“Since 1929 prices have fallen and kept avcll below the level at Avhich production can be remunerative. They have fallen irregularly, moreover, and have distorted normal economic relationships. Tho fall in prices lias added oppressively to the burden of Avorld indebtedness. In 1932, compared Avitli 1929, the production of raAV material fell 30 per cent, and exchange between town and country has been tragically limited. The national income has fallen seriously everywhere—in some countries betAveen 40 and 50 per cent. Tho general crisis, accentuated by restrictions, by tariffs, by quotas and by exchange control, has reduced international trade betAveen 1929 and 1932 to less than three-quarters in volume and to exchanging at about half the price. Inevitably, irrespective of jiolicy and forms of go,vernment. unemployment has mounted until the Avorld figure has reached thirty millions. This cannot go on.”

BANKERS’ CONFERENCE,

STABILISATION. OF CURRENCIES

MUCH PROGRESS EFFECTED

LONDON, June 12,

The political correspondent of the Daily Mail says that considerable headway has been made at the meetings of Treasury officials and Mr Montagu Norman, governor of the Bank of England; Mr Harrison, of the United States Federal Reserve Bank; and M. Moret, of the Bank of France. An early announcement is expected to be made in regard to the temporary stabilisation of currencies. M. Moret pressed for Britain’s return to gold, but the Government insisted that must be preceded by a settlement of war debts, the redistribution of gold, and tho abolition of exchange restrictions. Nevetheless, Britain was ready to accept temporary stabilisation proposals in order to avert failure of currency stabilisation. The bankers discussed the possibility of constituting a joint British-French-American equalisation fund, otherwise France and America should separately establish funds on the British model. It should then be relatively easy to stabilise currency. A gentleman’s agreement is considered most likely.

WAR DEBTS PROBLEM. Behind the subjects lie had mentioned, Mr MacDonald said there was another of first-rate importance, namely, Avar debts. The Conference was not constituted in such, a Avay as to enable it to consider and settle the matter, he added.

GENERAL SMUTS’S ARRIVAL. (British Official Wireless.) RUGBY, Juno 10. General Smuts, the South African Minister of Justice, who lias flown by the Imperial Airways route from the Cape, L reached the Croydon airport this morning, to attend the World Conference.

ORIGIN OF THE CONFERENCE

A YEAR OF PREPARATION.

The matter of holding tho World Economic Conference first took shape a year ago when Sir John Simon, pursuant to the Lausanne" Conference, moved in the League of Nations Council, and the Council acceeded to a request by the Lausanne Conference that the League should convoke a conference on monetary and economic questions. A committee of experts was arranged, to which was given the task of preparing the agenda, each nation taking part in the Lausanne meeting sending, two representatives. America was invited to attend.

Britain, whence the suggestion originated, was standing on the threshold of the third winter of the depression. The whole northern world was in the same plight. The economic position was not that it was unjust to certain countries, but ruinous to all. The Conference was a hope held out to determine the future and found a basis on which to build a better edifice.

The expert committee got to work in October. Before it met, however, there was a rift. Sir Walter Layton, editor of the Economist, who is regarded as an exceptionally able man, resigned. He was, with Sir Frederick Leith-Ross, Deputy Controller of Finance at the Treasury, to represent Great Britain. His antagonism to the Ottawa policy of the Government, he stated, rendered his position untenable, his view being that high tariffs hindering the free transfer of goods constituted a wrong economic background when international relations involved the payment of large sums one to another. He was replaced by Mr Frederick Phillips, Under-Secretary of the Treasury. The committee met at Geneva, Dr Leonardus Trip, president of the Netherlands Bank, being elected president. . . Tho tariff question arose early. Mr Phillips explained the Ottawa agreement, emphasising that stabilisation of currency depended on better commodity prices and removal of trade barriers. This was opposed by the French, Belgian and American delegations, declaring that Britain’s abandonment of tho gold standard had forced her neighbours to increase trade barriers. Here had arisen an obstacle in the committee’s deliberations which was difficult to overcome. The subject persisted.

By the middle of November the situation appeared confused, and shortly afterwards it was apparent that a serious hitch had occurred. The experts had been at work trying to facilitate international finance. They were said in London to have misconstrued their terms of reference and to have embarked on a long programme of research, which, it was felt, lay properly within the sphere of the conference itself; that they had considered they were charged to investigate the currncy and economic questions, whereas their work was to prepare an agenda for the gathering of the nations. They had, it was revealed later, actually proposed . certain remedial measures, one of which was not denied, namely, that a return to gold by nongold countries was a condition precedent to a successful conference.

The committee dispersed with the object of resuming in January. After the tariff question had interrupted proceedings, war debts clouded the horizon a.ud there was a gap in the progress of the committee. Stabilisation of the pound sterling as a matter for concern for the British Government also provided difficulties. The war debts again came strongly into the discussion. The Times said in that connection: “No scaling down or moratorium will be of any service. Nothing is more certain than that the conference will break down unless some mutual arrangement is reached before June 15 (the date the instalments fall due), by wiping out the whole entanglement and accepting a final payment in full settlement.” The President of the United States Mr Roosevelt) sent invitations to the various Powors to go to Washington with the object of holding a conference preparatory to the World Economic Conference. Mr Ramsay MacDonald accepted, and went to America in April. In a speech in tho House of Commons in May, Mr MacDonald a.nnounced that war debts would not be discussed at the World Conference. He said that he and Mr Roosevelt had found themselves in complete agreement as to the objects in view. In their report to be submitted to the conference the experts expressed grave fears for the world’s economic, financial and social systems if tho conference failed. They emphasised that world prices had dropped by one third, primary products by one half, while wheat prices were the lowest tor 4UU years. Furthermore, it was stated, some countries’ exports were insufficient to meet the service of their foreign debts. They expressed unanimity that gold was the most suitable medium of economic intercourse, hut numerous provisos did not suggest that ail early return to gold was envisaged. Invitations to attend the Conference were sent to 60 nations, 56 being members of the League, the non-mem-bers invited including .the United States, Russia and Danzig.