RESTORATION OF PROSPERITY

Otago Daily Times, Issue 21979, 14 June 1933, Page 7

RESTORATION OF PROSPERITY

UNITED EFFORTS OF THE NATIONS ECONOMIC CONFERENCE OPENED THE KING’S WELCOME TO DELEGATES A LONDON, June 12, His Majesty the King declared the World Economic Conference open at 3 o’clock this afternoon. 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.

TASK OF THE CONFERENCE WORLD AWAITING OUTCOME THE KING'S GOOD WISHES (British Official Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.) RUGBY, June 12. When his Majesty the King opened the Monetary and Economic Conference he addressed the representatives of 66 nations, containing 2,000,000,000 people. Three hours before the conference bv gan a great crowd, notably cosmopolitan in character, had assembled outside the entrances, and the King, who drov ; e from Windsor, was loudly cheered on his arrival and as he left. . As the King, entered the conference hall, escorted by Mr Ramsay MacDonald, Sir Eric Drummond (Secretary-general of the League of Nations), and M. Avelol (secretary-general of the conference);' everyone present rose and remained ' standing while his Majesty de-. livered his address. He referred to the League of Nations, the work of which, he said, he had always followed with the keenest appreciation, and said that without the League and its ideals he doubted , whether the conference would have ever taken place. The King said he also recognised the -spirit of. helpful co-opera-tion, which, had- brought representatives of States not members of the League to these discussions, and he extended a special welcome to the Empire delegates. Interposing a -passage in French, the King said: "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. The world is in an nnquiet state, and for'you who from today begin the work of restoration the task is heavy. It cannot be achieved except through goodwill and sincere cooperation. I extend my .hand to you, and with all my heart I wish that your efforts shall be brought to a happy result, which, the peoples of the world await with impatience."

Continuing in English', the King said that the evidence of a real desire to reach an agreement gave hope. All the nations were suffering from common ills. This was shown only too clearly by the unemployment figures, the meaning of which in terms of human suffering had been his Constant concern in recent years, as it had been of everyone present on whom the responsibility of government had rested.

“It cannot be beyond the power of man,” continued his Majesty, “ so to use the vast resources of the world 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 an abundance of production has itself created a new problem, and together with this amazing material progress there has come a new recognition of the interdependence of nations and the value of collaboration between them. Now is the opportunity to harness this new consciousness of common interests fo the service of mankind.” The King concluded; “ T pray that the results of your labours will set the world once more on the path of prosperity and ordered progress.” The King remained while hi* speech was translated, after which he left, escorted by the Prime Minister. i. THE NATIONS’ BURDENS WAR DEBTS QUESTION A SOLUTION IMPERATIVE * (British Official Wireless.) / RUGBY, June 12. Mr MacDonald, on returning, addressed the conference briefly. He outlined the state of the world that had

- made the conference necessary. “ The economic life of the world,” he said, “has for years been suffering from a decline which closed factories, limited employment, reduced the standards of living, brought some States to the verge of bankruptcy, and inflicted upon others recurring Budgets that cannot be balanced. Since 1929 prices have fallen and kept well below the level at which production . can be remunerative. They have fallen irregularly, moreover.

and have distorted normal economic relationships. The fall in prices has added oppressively to the burden of the world’s indebtedness. In 1932, compared with 1929, the production of raw materials fell by 30 per cent., and the exchange between town and country has been tragically limited. The national income has fallen seriously everywhere —in some countries between 40 and 50 per cent. The general crisis has been accentuated by restrictions, by tariffs, by. quotas, and by exchange control, and has reduced international trade between 1929-32 to less than three-quarters in volume, exchanging at about half-pride. Inevitably, irrespective of policy and forms of government, unemployment has mounted until the world figures have reached 30,000,000. This cannot go on.”

Behind the subjects that he had mentioned, Mr MacDonald said, was another of first-rate importance —namely, war debts, but the conference was not constituted in such a way as to enable it to consider and settle that matter. Mr MacDonald continued: “The war debts question S must be dealt with before every obstacle to a general recoyery had been removed, and it must be taken up without delay by the nations concerned. Lausanne has to be completed, and this vexed question settled once and for all in the light of present world conditions. This conference is the 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 an immediate financial collapse.” The world could not right itself without international agreement. The last few years had proved that a purely national economic policy impoverished the other nations and those who pursued it. The nearer they could make the world an economic unit the better would it be for each nation. The Prime Minister stressed that rapidity of agreement was essential to success. COMMODITY PRICES

an increase essential LONDON, June 12. One of Mr MacDonald’s best declamations, which was undemonstratively received, was that war debts must be settled; indeed, taken up immediately and a seal put on Lausanne’s labours. Mr MacDonald trenchantly condemned self-sufficing, economic nationalism, and again affirmed “we must not fail.” He was equally insistent on the need of speedy relief. 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 —the uplifting of commodity prices. General Smuts revealed it as the crying need of his country, and found Australia and New Zealand similarly obsessed. General comment draws attention to the quiet simplicity of the opening; indeed, the silence was almost grim. All agree that the King set a splendid keynote with which Mr MacDonald’s supplementary reiteration against failure was in keeping, but as v yet it is too early to find any indication of reaction.

Mr Hull says:, “We have some surprises to spring.” The delegates wore morning dress. The only touches of colour were provided by two Arabian skeiks in flowing robes and cowls and the inescapable heliotrope creation of General Smuts’s woman secretary.

The speeches will begin at 10.30 tomorrow morning.

CONFERENCE BUREAU CONSTITUTION APPROVED. (British Official Wireless.) RUGBY, June 12. On the proposal of the president, the bureau of the conference was constituted as follows: —One representative from the delegation of each of the following countries:—Argentina, China, Czechoslovakia, France, Germany, Great Britain, Hungary, Italy, Japan, Mexico, the Netherlands, Spain, Sweden, United States, the Union of Soviet Republics, and one British dominion (Canada). The bureau held a private meeting at the end of the plenary session. The conference will resume to-morrow, when Mr Cordell Hull (America) will be amongst the speakers. POST-WAR DIFFICULTIES M. DALADIER'S ADDRESS. LONDON, June 13. (Received June, 14, at 0.5 a.m.) As there is an earnest desire to get to grips with the problems of the conference there has been no dissent from the Bureau's proposal to limit the general debate to three days and speeches to 15 minutes. . The president has discretion to extend the time if the speaker is usefully contributing to the work of the conference. The opening speaker was M. Daladier, who, addressing the conference for eight minutes, traversed the difficulties of production and exchange under which two-thirds of the world's population is existing. Agriculture, he said, had suddenly found that prices had fallen by half and sometimes two-thirds.. How could they, deprived of purchasing power, continue to be customers in industry? To the evil of post-war mass production was added the instability of currency. The restoration and maintenance of freedom of the movement of gold was indispensable to the restoration of the circulation of goods. What would they say of an engineer who worked with an indiarubber footrule? The adoption of a 40-hour week within the international framework was worthy of consideration. There was a tendency for all Government policies to run counter to one another. These must be harmonised in order to avoid. economic warfare. DINNER TO DELEGATES "COMMERCE THE REAL PEACEMAKER." LONDON, June 13. (Received June 13, at 7 p.m.) The Government gave a banquet to 600 delegates to the conference at the Grosvenor House Hotel. Mr MacDonald presided. M. Daladier was on his right and Mr Cordell Hull on his left.

Mr de Valera was the only notable absentee. /, ..General Sir lan Hamilton, who was attending another dinner in the hotel, sent in five pipers of the Gordon Highlanders to play a triumphal march round the 60 tables. Mr MacDonald, in proposing the toast of “The Guests,” said that they were facing the hardest work ever attempted by any conference. M. Daladier, in response, expressed hope for the success of the conference. Mr Hull said that commerce between the nations was the world’s real peacemaker. WIVES ENTERTAINED. LONDON, June 13. (Received June 13, at 7 £.m.) Miss Ishbel MacDonald presided at a dinner tendered at the Dorchester Hotel to 110 wives of delegates, who later attended Grosvenor House. BROADCAST OF KING’S SPEECH AN UNFAVOURABLE RECEPTION. The broadcast of the King’s speech and also that of Mr Ramsay MacDonald, as recorded at the time of delivery and later relayed from the Empire short wave station at Daventry, was not received well in Dunedin last evening. Listeners-in were unable to gain any coherent idea of the tenor of the addresses given, and at Station 4YA the reception was by no means good, although it was stressed by officials last evening that this was not due to receiving conditions but rather to daylight factors and characteristics of transmission. Mr MacDonald’s speech was a little more intelligible than that of his Majesty the King, but at its best it was not capable of accurate translation to paper. POOR RECEPTION IN AUSTRALIA. (United Press Association.) (By Electric Telegraph—Copyright.) SYDNEY, June 13. The broadcast of the King’s speech shortly after midnight was unfavourable to reception in Australia.