THE WORLD’S PROBLEMS

Otago Daily Times, Issue 21978, 13 June 1933, Page 9

THE WORLD’S PROBLEMS

TASK BEFORE CONFERENCE NATIONS’ RESPONSIBILITIES DISASTROUS EFFECTS OF FAILURE (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 11. On the eve of the conference newspaper comment stresses the difficulties, but indicates that the world situation is so grave, and the consequences of failure so disastrous, that the nations will be driven to finding at least a partial solution of currency and trade problems. Thus, Sir Arthur Salter (a member of the Economic Advisory Council), in an article in The Times, declares that ' success means the turning of the tide, a revival throughout the world, and a diminution of economic nationalism, whereas failure would involve indefinite postponement. The conference must first face the question of a currency and monetary policy, because tariff negotiations are impossible except in relation to provisionally stabilised exchanges, while the task of adjusting indebtedness of all kinds can only be measured when it is known how far the monetary policy is to be directed to raising the price level. No exchange stabilisation can last, however, unless it is based on a reformed tariff system and a normally working credit system. America’s depreciation of the dollar has made stabilisation more imperative. According to the Weekly Dispatch, several foreigners, under the leadership of America, supported by Germany and Japan, will vigorously attempt to kill the Ottawa agreements in order again to undersell Britain in the Empire markets. The Russians are desirous of raising industrial loans. The Sunday Times says; “ Germany will urge the industrial States to exchange their manufactures for the raw materials of the undeveloped countries, T/bich is interpreted as an attempt to regain her colonies. Italy is, optimistic, and will press for reduced tariffs and trade quotas, the return to gold of the dollar and sterling, and the stabilisation of currencies at the highest possible , rate.” • : v THE PROBABLE PROCEDURE RAPID WORK TO BE FACILITATED (British Official ’ Wireless.) ■ , RUGBY, June 10., It is anticipated that the World Economic Conference will sit daily from about 11 o’clock in the morning until 6 in the evening. The procedure still remains to be definitely settled, but it is thought probable that any ■ suggestions brought forward during the second reading debate will be examined and collated 'by the conference secretariat, and the resolutions' to be laid before the conference will be framed accordingly. On the basis of the preliminary agenda prepared by the Committee of Experts, the conference is likely to set up two or three fairly large commissions after the second reading debate. | They will have their own sub-committees to consider details of the larger problems remitted, to the commissions, but every effort is being made to avoid cumbersome machinery and to, facilitate rapid work by the conference in order to release for their duties in their own countries the eminent statesmen who are serving as delegates to the conference. ’ • . . : v, BEHIND THE x SCENES A CONFERENCE OF BANKERS. LONDON, June 11. Manoeuvres behind the scenes in connection with the World Conference have already begun. The Su*n Service learns that important meetings held at the Treasury between Mr Montagu Norman, Mr Harrison (of the Federal Reserve Bank), and M. Moren (of..the Bank of France), with expert advisers, began on , Saturday and continued throughout Sunday. It is reported that they are endeavouring to reach a temporary stabilisation truce regarding the pound in relation to the dollar and the franc in relation to the pound, and will submit a fait accompli at the opening of the conference.

To-day’s comings and goings at Downing street were surrounded with secrecy. Some Ministers were hastily summoned to No. 10 to-night following a despatch from Washington. Sir John Simon, who was recuperating at Le Touquet, was recalle'd, and returned by special aeroplane and went immediately to No. 10. iThe invasion of London by delegates to! the conference continued all day, many arriving by air. Dr Dolfuss, 'who travelled in his own plane with a Fascist bodyguard, was greeted by Count Ciano and other Italians at the Croydon air port. "

The Times, in a leader, says: “The conference must not be allowed to fail. It must see the world on the way to recovery if the nations are not to lose all faith in the capacity of their statesmen.” It declares that the difficulties are not insuperable, and that the responsibility of the delegates is clear and inescapable. “With goodwill and determination they will certainly discharge it.” STABILISATION OF CURRENCIES GENTLEMEN’S AGREEMENT LIKELY. LONDON, June 12. (Received June 12, at 7 p.m.) The Daily Mail’s political correspondent says that considerable headway has been made by the bankers at the Treasury talks. An early announcement will be made with regard to the temporary stabilisation of currencies. M. Moret pressed for Britain’s return to gold, but the Government insisted that this must be preceded by a settlement of war debts, a redistribution of gold, and the abolition of exchange restrictions. Nevertheless Britain is ready to accept temporary stabilisation to avert the failure of currency stabilisation. The bankers discussed the possibility of constituting a joint Prench-Anglo-American equalisation fund or otherwise of France and America separately establishing funds on the British ind'del. _ It should then be relatively easy to stabilise currency. A gentlemen’s agreement is • considered most likely. IMPERIAL AIMS EMPIRE DELEGATES MEET. LONDON, June 12. (Received June 13, at l a.m.) The Empire delegates, including Mr I Stanley Bruce, Sir Thomas WilfordMr I’ Bennett, and General Smuts, met at | Downing street under the . || Mr Ramsay MacDonald, and discussed

with members of Cabinet the object of finding the extent of unity in Imperial aims to enable a clear understanding when voting at the conference is reached. Several further meetings will be held during the conference.

BROADCAST OF OPENING CEREMONY (Per United Press Association.) WELLINGTON, June 12. Advices from London give the following New Zealand times for the broadcast of the opening ceremony of the World Economic Conference' Opening announcement, 1.27 a.m.; King’s speech 1.30 a.m.: descriptive commentary, 1.37 a.m.; British Prime Minister, 2 a.m.; approximately close down 2.80 a.m. New Zealand YA stations will broadcast the recorded version of the King’s speech at 5.45 on Tuesday evening.