WORLD CONFERENCE

Otago Daily Times, Issue 21980, 15 June 1933, Page 7

WORLD CONFERENCE

PRELIMINARY DISCUSSION NECESSITY FOR AGREEMENT RECOGNISED BY DELEGATES (British Official Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.) RUGBY, June 13. Several prominent delegates took part in the preliminary general discussion at to-day’s session of the World Economic Conference. While different aspects were discussed by the different speakers, there was a general recognition that agreement had to be reached and vital decisions taken by the conference unless the world situation was to develop into one of extreme and incalculable gravity. M. Daladier (France) said: “We believe that it is first necessary to put an end to the war of money and its instability, and give commercial exchange an indispensable guarantee of monetary security.”' Signor Jung (Italy) stressed the necessity of real stability of values. He said it was useless to create illusive values. Stimulus of credit could not bo increased merely by increasing the supply of credit. General Smuts (South Africa) emphasised the need of quick decisions. Count Ishii (Japan) said they had burned the bridge behind them, and failure would mean disaster. Japan desired conditions making possible a general restoration of the gold standard. M. Beck (Poland) considered that stabilisation of currency should be kept in the forefront. No artificial measure could restore prices to where they were before the crisis. All efforts should be directed towards reconstructing the stability of international relationships. Senor Marino (Cuba) said: “If the conference does not succeed in reducing the very high rate of tariffs existing in the world to-day it will have failed in its principal task.” Baron von Neurath (Germany) emphasised the desire of his country to collaborate in the spirit of the King’s opening address. He remarked that the interests of the creditor and debtor countries seemed to differ, and the gold standard countries seemed to have other interests than the countries which had abandoned the gold standard, .or which required exchange regulations for the protection of their currencies; but the conference, in its overwhelming desire to acknowledge common interests, had proved most strikingly that all those differences were only differences in appearance. Industry could not prosper if agriculture did not flourish. A creditor could not exist if the debtor perished, and vice versa. Gold currency became meaningless if the free circulation of gold was not guaranteed. They must find courage to carry through the solutions while remembering that the success of the conference was largely dependent on the fulfilment of great political tasks. Mr Chamberlain will make an important statement, putting forward the British proposals, at to-morrow’s sitting. Dr Dolfuss is also expected to speak before returning to Vienna.

PROBLEM OF ADJUSTMENT

EVILS OUTSIDE MONETARY FIELDS. LONDON, June 13. Signor Jung (Italy) emphasised the great importance of a settlement of war debts. The fact that all nations (wealthy and otherwise) suffered from the same ills—unemplyment and a decline in real prices—proved that the evils were outside the monetary fields. It was not logical to deplore an excess of productive equipment and simultaneously to expand it by forced injections of credit. It was a problem of adjustment, and they must co-operate to enable investors to fee] that their interests were safeguarded. Economic efficiency was paramount. General Smuts (one of the three survivors of the Peace Conference) said that he had seen the fears of economic warfare realised. He now feared for the fate of civilisation if the conference failed. He implored the conference to separate politics from economics, and to appoint committees of experts to advise on the right steps for world recovery. EFFECT OF DEBT NEGOTIATIONS REDRAFTING OF MR HULL’S SPEECH. LONDON, June 13. Although the afternoon session of the Economic Conference was timed to end at 6 o’clock it lapsed an hour earlier, no speakers being available. A contributory reason was the all-day distraction over the fate of the Anglo-American debt negotiations, which inevitably precipitated themselves into the atmosphere of the conference from which Mr Hull was an absentee. Many delegates preferred to go to the House of Commons to hear Mr r Chambcrlain’s statement.

It was not a surprise when Mr MacDonald announced that nobody was ready to continue the debate. It is an open secret that Mr Hull :s redrafting his speech in the light of the war debts negotiations, and also the outspoken references to them in most of the speeches. It is fairly certain that specific subjects will be referred to commissions on Friday when the real work of the conference will begin. General Smuts’s suggestion to leave economics wholly to experts is not finding favour. The politicians assert that they always in the long run have to cut the knot to save the experts from debating interminably. Count Ishii left no doubt that lower tariffs are au essential condition of Japan’s willing co-operation, a sentiment which disturbed the other manufacturing countries. NO CONNECTION WITH OTTAWA STATEMENT BY BENNETT. LONDON, June 13. The Prime Minister of Canada (Mr R. B. Bennett) told journalists that the World and Ottawa Conferences were ! n no way related, except that the latter reached agreements. Lot us hope that we shall agree here.” Important questions for the conference, he said, were the use of silver as an alternative to gold and stabilisation. Failing stabilisation, it would become almost impossible to transact international business. Canada had come to London in her own interests. “So far as we are concerned there is no common plan. It is impossible f or any statesman' to speak on behalf of .he whole Empire,” he concluded. VIEWS OF JAPAN REMOVAL OF TRADE BARRIERS. LONDON, June 13. Count Ishii advocated immediate temporary measures in connection with currency, credit, trade barriers, and price levels! Japan, he said, was ready to consider the obviation of exchange fluctua-

tions pending a final return to gold. He advocated the unrestricted application of the most favoured nation clause. Baron von Neurath urged a clear understanding of Germany’s situation as a prelude to the selection of proper remedies. International debts could only be paid in goods and services after credit and financial problems had been satisfactorily settled through peaceful cooperation. Herr Hitler’s declaration had paved the way to a return of confidence in Germany's acceptance of Mr MacDonald’s plan as a basis of a convention, and had given disarmament a new im pulse. The spirit inspiring these actions would characterise Germany’s approach to the world’s financial and economic problems. The conference adjourned. PLANS WITHHELD M. DALADIER CREATES IMPRESSION. LONDON, June 13. \ The opening of the conference 'was marked by the grey skies, which brought gloom to the chamber. Informal conver sations indicated that few constructive speeches are likely, as the delegates are withholding their plans until the committees are constituted. Fruitful work in the chamber is rendered extremely difficult by the prohibition of smoking, the delegates spending most of their time in the lobbies, where they are able to exchange ideas in friendly confidence.

M. Daladier, nuggety, and filled with Gallic fire and Breton caution, spoke from a manuscript, but seldom referred to it. He possesses a manly voice, with a delightful timbre. He is always arresting, and made a great impression. Signor Jung, who is a sexagenarian, is thick set, and of medium height. He was wearing a Fascist emblem in his buttonhole. He spoke with a perfect English accent, and has a deliberate and quiet delivery. He briefly mirrored Signor Mussolini’s practicality, an interpreter translating his speech into French. Signor Jung approached nearer bleak facts than any statesman has yet dared. THE MONETARY COMMISSION AMERICA’S DESIRE FOR CHAIRMANSHIP. LONDON, June 14. (Received June 14, at 8 p.m.) A conference at which the delegates do not want to speak is somewhat of a novelty, but yesterday’s, renunciations mean a speedy winding up of the general debate and the early appointment of the two main commissions—-monetary and economic. The French are advocating a third commission to deal with questions of production and labour. Tlie American delegation strongly desires to secure the chairmanship of the monetary commission, but its claim is opposed by a majority both of the great and smaller Powers, among whom the unchecked depreciation of the dollar aroused criticism. Probably a neutral chairman will be chosen. Conversations continue between the British and French bankers and Treasury experts, and Dr Schacht has resumed his talks with representatives of Germany’s creditors.

SECOND DAY OPENED

RAISING OF PRICE LEVELS,

LONDON, June 14, (Received June 15, at 0.30 a.m.)

M. Hymans (Belgium) was appointed vice-president of the conference. The sunny morning session began in a buzz of expectancy with the announcement of the speeches of Dr Dolfuss, Mr Neville Chamberlain and M. Ljtvinnff. Most glamour centred in the diminutive boyish figure of the Austrian Chancellor, who is beset with a tense anti-Nazi situation at home and for whom an aeroplane was waiting at Croydon to whisk him to Vienna to-day. His speech was a model of gravity. He plumped heavily for a reduction in wheat production as a check on the depreciation of prices. Mr Chamberlain’s 35-minute survey created an excellent impression with detailed suggestions based on the uplifting of the price levels after a final settlement of the war debts. TARIFF TRUCE ARRANGED - LONDON, June 14. (Received June 15, at 0.25 a.m.) Mr Ramsay MacDonald said that 19 States, the majority of which played an important part in world economy, had agreed to a tariff truce for the duration of the conference. He earnestly appealed to all States to give adherence to the truce by Friday, which would be a good augury for the work of the conference.