BASIC PRINCIPLES

New Zealand Herald, Volume LXXV, Issue 22949, 29 January 1938, Page 13

BASIC PRINCIPLES

INTEENATIONAJj LAW SERIES OF SHOCKS •PERNICIOUS INFLUENCE By Telegraph—Press Association—Copyright LONDON, Jan. 27 In the course of his report on the economic appeasement of Europe. Dr. van Zeeland takes the view that repeated shocks to the basic principles of international law are a pernicious influence on politicoeconomic relations, and that it is high time to restore the sanctity of plighted engagements and respect for international law. The report recommends the suppression of industrial quotas. This Buppression of quotas would not imply a ban against dumping measures or the suppression of cartels. Dr. van Zeeland outlines the ill effects of currency instability. He says he considers it is too early to return to the gold standard, but it would be possible to revise and extend the tripartite monetary agreement between Britain, France and the United States to include Belgium, Switzerland, the Netherlands, and any other countries agreeable. The report emphasises the urgency for suppressing restrictions on payments for merchandise, but recognises that itis necessary first to arrive at an agreed adjustment of external debts. Evils ol Abnormal Tariffs Debtor countries must be supplied with credit facilities to enable them to support their export trade and finance part by their imports, says Dr. van Zeeland. He outlines machinery for doing this through the Bank for International Settlements. The report specially commends the suggestion that the collaborating nations should establish a common fund, the resources of which might be applied to facilitate and finance legitimate trade. The fund would merely operate where normal methods were not sufficient.

The need for exceptional measures would very soon disappear if international economy recovered its vigour and flexibility.

Commenting on the evils of abnormal tariffs, Dr. van Zeeland says he considers it necessary that Governments should undertake not to raise or widen the range of tariffs, but to carry out a gradual reduction of duties. The amount of bilateral commercial agreements based on the most-favoured-nation clause remains one of the most efficacious methods of removing tariff barriers.

It is impossible to over-estimate the direct and indirect result of a trade agreement between Britain and America. Outlook not Thought Hopeful The Australian Associated Press says it understands that it may be assumed that other countries will he ready to join in practical action on the lines of Dr. van Zeeland's report. Britain is prepared to play her part. Public interest in the report is so keen that the French and British Governments, with the concurrence of Dr. van Zeeland, decided to publish it immediately it was received. Therefore they have not had an opportunity to styidy the proposals fully or jointly. It is likely that after very close study there Anil be an informal exchange of views between the countries concerned to test the atmosphere for a formal meeting, but the outlook does not appear to be very hopeful.

It is understood that Dr. Tan Zeeland traversed such a thorny path across the principal countries of Central and Western Europe, and found such suspicion among leading financial and economic authorities, that he declared he would not ever like to take on such an arduous and thankless task again.

COMMENT WITHHELD. MATTER REQUIRES STUDY EUROPE AND AMERICA (Received January 28, G. 5 p.m.) LONDON, Jan. .28 Summaries of Dr. van Zeeland's report ■were published in Home and Berlin without comment. Official circles aro similarly reticent, saying that the matter is too complicated for comment at present. A ihcssage from New York states that the New York Times says: "It is not prejudging the conclusions ill the report to say that the brightest hope of international co-operation in the world to-day lies in the prospect of a closer partnership between democratic nations which have common standards and kindred purposes." A telegram from Washington states that the Secretary of State, Mr. Cordell Hull, declined to discuss the report on the ground that ho had not sufficiently studied it yet. However, he praised the undertaking.

Otlior comment apparently will also be delayed pending a further exploration of the meaning and significance of tho document, though it is felt that Dr. van Zeeland generally follows the concepts of trade relationship long held by the American Government.