WORLD ECONOMICS

New Zealand Herald, Volume LXXV, Issue 22950, 31 January 1938, Page 12

WORLD ECONOMICS

VAN ZEELAND REPORT CLOSE STUDY BY BRITAIN BILATERAL AGREEMENTS By Telegraph—Press Association —Copyright (Received January 30, 6.55 p.m.) British Wireless liUGBY. Jan. 20 The Chancellor of the Exchequer, Sir John Simon, speaking at Leeds, said Dr. van Zeeland's report on the economic appeasement of Europe would be studied by the British Government with very close attention.

Referring to the importance which Dr. van Zeeland attached to bilateral commercial agreements Sir John said it was only since Britain had her own tariff system that such an agreement could be secured by her. This new policy mnde possible a wholo series of tariff agreements with foreign countries, greatly to the advantage of various classes of British exporters, which certainly could not have been obtained without a fiscal instrument. The same policy would continue to be pursued.

OPINION IN JAPAN PESSIMISTIC ATTITUDE INTERNATIONAL UNREST CAUSES NOT TOUCHED (Received January 30, 5.5 p.m.) TOKIO, Jan. 29 Industrial and financial circles in Japan maintain a pessimistic attitude to Dr. van Zeeland's report. They point out that it does not touch the fundamental cause of international unrest, namely the unequal distribution of the world's wealth and the antagonism between tl\e "have's" and the "have liots," but on a technical solution of the questions of trade and currency. These are regarded in Japan as only side issues. Scepticism is general regarding the possibilities of a world conference.

REACTIONS ABROAD GERMANY AND ITALY SELF-SUFFICIENCY QUESTION Times Cable LONDON, Jan. !?8 Tho Berlin correspondent of the Times says the Government reserves comment on the van Zeeland report, pointing out that 'it is primarily a FrancoBritish document, in which Germany has not a part. Moderate quarters do not seem displeased with the report, but the newspapers are hardly optimistic of any results.

The Koine correspondent of the Times says the tendency in Fascist circles is to decry the report, as the author is a democrat, and was sponsored by democratic Powers.

Nevertheless, commercial opinion is inclined to be sympathetic, as the report offers a means of obtaining credits, which are vitally necessary, as Abyssinia and Spain are slowly sucking Italy's capital dry. There is also a strong feeling that the pursuit of self-sufficiency has been pushed too far, and is driving, up prices and causing widespread hardship. These considerations may lead Signor Mussolini to view the van Zeeland report more attentively.