SECOND EDITION

New Zealand Herald, Volume LX, Issue 18520, 3 October 1923, Page 9

SECOND EDITION

Policy flf the empire. ;• '• '■Jli\::J,J^ i —.——v-;.'v 1 EUEOPEAN SITUATION. REPARATIONS' PROBLEM. LIMITATION OF FORCES. MUTUAL <TEADE INTERESTS. By Tolegrraph—Press ■' Awe«ia4ion~<^.ynehfc (Received 2 a.m.) - A. and Renter. LONDON.'; Oct. 1i.,. ■ : Mr. S. Baldwin, in his opening - speech • at'the Imperial Conference,, very heartily welcomed the delegates. Ha pointed out : that except for General, Smuts, Mr. Massay, and s the -Marquis Curzorij ivho had taken an; important part in the confer-;' • ences since 1917, the ; delegates except Mr. ;, Burton were attending thelmperii; Con?

iarence for the first time. He cordially •; welcomed Mr. ? Cosgrave and his colleagues, also Mr. Mackenzie King, on V whom.he* said they would rely' to con- . tinue the r high traditions of - his predeces- ■ sors. They would be; especially 'glad, to, benefit ■?■ by [_ his knowledge " of .industrial problems. Mr. Warren was T no •■ stranger • to England, vor was Mr; De Wet, whom Mr. Baldwin cordially greeted, It .was a pleasure to ; have with; them .the : distinguished representatives "of the Indian Em-

pire. * ■•:.•:•. •; •■..'. .■•..■' ■■.■- -v * _ Reviewing the ;history, of the reparations problem since May, 1921, Mr. ■& Bald-.... - win emphasised that there was no differ- .?.".' ; ence of' opinion among the Allies ;on .thei principle 'that Germany should ;be maoTe to pay to the utmost limit of her ability. The Government had no easy i'a.sk in carrying out the policy of ■ neither ;help- ,; ing.; nor hindering the* action; of the '.-Al-lies,-but dared t;hope, to» succeed in- the main in'maintaining .strict *' : The Notes 'exchanged f between ;SriEaiJi and, France since the conference in;-January more and more revealed honest divergence .;■':■ of opinion in regard to the best method . of, obtaining f reparations i and advancing -■ the cause; of •■: the - permanent '■',- peace ;• of .-..:|" ,-■ Europe. :'_.'■; This ' J divergence .''■ reflected '{■'-. the; '■■} differences of temperament and in- outlook of the two; nations', I '"which it would < be foolish to ignore, but-the last'twenty" years had : shown .' they were . not :• incom- : ■■:■ patible with ; whole-hearted ■ co<,oration in the face <oi.. grave danger;.- - . * Good "'Work of the league. ''' Mr. Baldwin, referring to. the crisis bo- i?; % ... tween " Italy and Greece, drew particular attention to the very useful effective part played by the League of Nations. > Mem- . bers of the Council of the League deserved the greatest credit for placing the permanent interests, of peace above what : ; might 'have .'seemed';the, immediate inter- • ests of the League. Had the League no(& existed and not acted as it. -resort to

amis woulA almost inevitably have oc- •'v ' curred. ■' The moderation' ?• and':.'• common- •-, . . sense shown by the League in very ing circumstances -had'strengthcnediV its :•■"■- hold upon ,the v confidence toft reasoning men 'everywhere. They had every reason to be satisfied with the part, played' by .the t British Empire delegations at Geneva in contributing to, this happy result. ' Dealing with the Turkish'Treaty,'Mr* "• Baldwin said he was of-opinion; that after -. ; ;> hearing -the; statement by Lord Curzqn in ;-• that connection, k the delegates would agre» that the- Treaty-- not -only- safeguarded o{the essential interests of the 'British Empire without , damaging British prestige, . - but had 'done something to reconcile iih'e ;.- different national;; and'; religious-interests, which so often troubled that quarter -of , . the! world, :-. and■ ■.■ had ? laid the . foundation.. • for a ■'■ period of I comparative ' tranquility and economic reconstruction; ;-; - Standard of British Credit. Referring' to the .debt to : the 'United ~ States, he X emphasised < the fact',that "> the •:■-■' burden was' .;; very .heavy, amounting '"'s•. sevenpence in the, pound income tax. ■;. Be- ■■•. payment would "demand all our-', energies, but 'funding was the only course consist- ' ent with ; the supreme standard of British credit,. which was' an essential prelimin- - ary, to the restoration, of th«, normal economic ; life of {*■ the- world! ■ • V Debts • ; of great nations must" be recognised if the - | foundations of commercial progress are; to . stand. t ' "**■ Referring to Imperial defence, he said .-•,. the results bl; the Washington Conference ■)'■ l;„ were' exceeding 'the ..most sanguine expec- -- tations. They were in'no> small measure, ■ due to the J last Imperial ; Conlerente and : \ : -' the-'successful^ co-operation "of'the British ,'-'■ ; , Empire Delegation; Referring to -the decision> >to reinforce' : ■ the defensive air forcesi'f he reiterated the willingness of . the -Government to . CO-.'.'../ operate with other,' Governmentsin limit- . ing air armaments. • ' \ Dealing' with the effects of post-war "' unsettlement, ; Mr:. Baldwin saiaY.that un-, - happily the recent improvement in trad* had been checked. He pointed* out .that \ there were -still 2,250,000 unemployed, com-■ ■..:?; pared with a little over 1,500,000 when the ;■:■.-.;■: last conference met. ' The question ; of . .inter-Imperial trade.-, was one of the : most; important items on the agenda'. He wan . confident they would ba able •to devisft ;: mutually. advantageous measures; by way ;. of redistributing population, , ,! improving transport, means -,- of ■'>', communication - and generally ; increasing .the ■. facilities' for the * - growth of trade within the Empire.