WORLD PROBLEMS

Otago Daily Times, Issue 21981, 16 June 1933, Page 9

WORLD PROBLEMS

SEARCH FOR A SOLUTION POLICY OF GREAT BRITAIN OUTLINED BY CHANCELLOR tßrltlsh Official Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.) RUGBY, June 14. The general discussion was continued at the plenary sessions of the World Conference to-day. The British Government’s considered policy was stated by the Chancellor of the Exchequer (Mr Neville Chamberlain), who said that the fundamental monetary condition of recovery in prices was that credit should be actively employed. This, together with a revival of business confidence, must form an indispensable background of trade recovery. Central Banks should undertake to cooperate with a view to securing the monetary conditions required for a rise in prices. The question was whether the Governments could actively assist by schemes of governmental capital expenditure, which would also require consideration. The United Kingdom delegation would be very ready to examine with the other delegations how far employment could be stimulated by such action. Rises in the price levels and an increase in world trade would contribute powerfully to reduce exchange difficulties, and would assist in bringing to an end both the standstill arrangements in respect to short-term debts and the transfer difficulties as regards external indebtedness as a whole. These difficulties would also be-greatly diminished by the resumption of normal international lending.

Referring to the growing obstacles to international trade Mr Chamberlain expressed his willingness to examine proposals for attaining a reduction in excessive tariffs by mutual action. Any such proposal must be effective in securing really tangible reductions in excessive tariffs. It must command a sufficiently general measure of support and cover a wide enough area. It must not impose upon low tariff countries disproportionate sacrifices, and must not have injurious repercussions or lead to economic hostilities. The British view was that a reduction in Customs tariffs could best be achieved by a series of bilateral negotiations, which the conference should endeavour to promote. Commercial treaties should not be terminated before tariff negotiations were undertaken, and then only after every effort had been made to reach agreements by negotiations. The United Kingdom delegation strongly favoured the progressive abolition of all arbitrarily imposed quotas. In view of the disastrous slump in prices the British Government was engaged in promoting the regulation of supplies of several food products. It would be prepared to co-operate in regulating supplies of wheat and other foodstuffs with a view to restoring and maintaining a reasonable level of prices. Mr Chamberlain added: “If a creditor country wishes to obtain payment of claims on foreign countries it must accept goods and services in settlement of those claims over and above the imports it takes 1 in exchange for its own exports. A revival of trade largely depends upon the extent to which the creditor countries will be prepared to give practical effect to this principle. Moreover, international trade cannot prosper on a basis of the exchange of commodities between each two countries being precisely balanced.” Mr'Chamberlain, in referring to State subsidies on export trade and shipping, said they involved unfair competition, and the adoption of this policy by one Government tended inevitably to force this unsound expedient on the Governments of other countries engaged in the same trade. A determined effort should be made to secure a reduction and the eventual abolition of export and shipping subsidies by international agreement.

“ There is close connection between the monetary and economic aspects of our problem,” Mr Chamberlain added. “ Action in these spheres must be taken simultaneously. Any attempt to obtain equilibrium by further large reduction in costs would be attended by intolerable suffering without hope of success. The solution of the difficulties must be found in recovery of the price level. The immediate aim of the monetary policy should bn stabilisation of currency, and its ultimate aim the restoration of a satisfactory international standard for which gold seems most generally acceptable. We attach the greatest importance to the abolition of exchange restrictions and hope that the conference will take positive action to secure this end.” REMOVAL OF TRADE BARRIERS VAGUENESS OF MR HULL’S SPEECH. LONDON, June. 14. Mr Cordell Hull’s keenly awaited speech scarcely bore comparison with Mr Chamberlain’s analytical effort. Mr Hull skated over the whole surface of economics without even an indirect reference to war debts, though lie admitted that international co-operation was a fundamental necessity. He - even pleaded for the liberalisation of commercial policies, but left it to the individual im-

agination to decide whether he Included America among the nations eager to sell but unwilling to buy. In redemption for the vagueness of his speech he promised that America would submit concrete proposals in the committee stage. Mr Hull said the whole price-ridden world was looking to the World Conference for leadership with a programme of basic reliefs, and the distressed people in all lands expected concord, co-opera-tion, and constructive results. Trade barriers inevitably caused disastrous reaction upon production, employment, prices, and distribution. The strangulation of international trade revealed the most tragic phase of that short-sighted and ruthless policy. The inevitable effect had been to reduce to the lowesst level all prices of primary commodities. Had not the time come for Governments to cease erecting trade barriers with their excessive discriminations and hate-breed-ing reprisals and retaliations? International co-operation to-day was a fundamental necessity. The conference should proclaim that economic nationalism was a discredited policy. All excesses in the structure of trade barriers should be removed, and all unfair trade methods and practices should be abandoned. In the monetary field he urged suitable measures for the immediate policy giving the greatest possible measure of stability for a period during which- the groundwork would be laid for enduring reform. He demanded measures for the removal of exchange restrictions, and declared that America was prepared to offer concrete suggestions. CO-OPERATION BETWEEN BANKS ADVOCATED BY AUSTRIA. < LONDON, June 14. Addressing the conference Dr Dolfuss (Austria) said that it would certainly contribute a great deal towards the settlement of the debt problem if it could call into being the necessary negotiating body. A method of cooperation between the Central Banks should be adopted as a regular institution by the conference with a view to stabilisation and the maintenance of stability of currencies. He was pleased to announce Austria’s agreement to the tariff truce.

M. Litvinoff (Russia), in jerky English, did his best to convince the conference that Russia was in no way responsible for the world crisis with its acute difficulties, which were inherent in the capitalistc system. Russia was ready, he said, if credit facilities were forthcoming, to place orders abroad to the extent of one billion dollars for the development of her resources. REAL WORK OF CONFERENCE TO BEGIN ON MONDAY, LONDON, June 14. With most of the more important nations having spoken the conference debate is expected to finish on Thursday night. Mr Bruce has still not submitted his name to speak. Mr Forbes is unlikely to do so at the present stage. Mr Bennett may expound the Canadian view to-morrow.

The creation of commissions will mean that the actual work will be begun on Monday. With the Australian and New Zealand /Parliaments out of session it is not expected that either will notify acquiescence to Mr MacDonald’s tariff truce appeal. In any case, it is only for the duration of the conference and is subject to a month’s notice of termination. NEW ZEALAND DELEGATES ARRIVE INTERVIEW WITH MR FORBES. LONDON, June 14. Mr Forbes, Mr Masters, and party arrived all well. ' Mr Forbes said he regretted that he had heard nothing of the opening proceedings of the conference. The people of Ne'w Zealand were placing great hopes in the conference. New Zealand had felt the full effects of the world-wide depression. The heavy drop in prices had necessarily reduced her capacity to buy British manufactures. He thoroughly approved of the limitation of the general debate of the conference in a desire to obtain quick decisions. He had no cut-and-dried views on any conference questions. He was only eager to co-operate in every way towards world recovery. There was no immediate prospect of an alteration in the New Zealand exchange except in accordance with the decisions of the conference. VISIT TO HOUSE OP COMMONS. LONDON, June 15. (Received June 15, at 6.5 p.m.) Mr Forbes, , accompanied by Sir Thomas Wilford, visited the House of Commons, and heard Mr Chamberlain’s statement. Mr Forbes was delighted to hear his Majesty’s and Mr MacDonald’s conference speeches by wireless on board the ship. THE OTTAWA AGREEMENTS EVIDENCE OF FOREIGN DISAPPROVAL. LONDON, June 14. (Received June 15, at 5.5 p.m.) There is unmistakable and growing evidence in the lobbies of the Americans’ and Europeans’ determination to attack the Ottawa agreements. American journalists sought Mr Bruce (Australia) to discover his views on Mr Hull’s and M. Litvinoff’s speeches, which they interpreted as implying the strongest disapproval of Ottawa, but the Australian and other dominion delegates saw nothing with the slightest bearing on Ottawa in the speeches. CURRENCY STABILISATION EARLY AGREEMENT EXPECTED. LONDON, June 14. (Received June 15, at 7 p.m.) The Financial Nows says: “Real progress has been made towards a general understanding on the subject of cur- ! rency stabilisation. M. Bonnet bad long conversations with Mr Chamberlain and Mr Hull. Well-informed French circles believe that an agreement will be only a matter of days.” QUOTAS OPPOSED POSITION OF PRIMARY PRODUCING COUNTRIES. LONDON, June 14. (Received June 15, at 5.5 p.m.) Senor Le Breton (Argentina) opposed ; quotas, and added that primary producing countries were encouraged to produce during the war. Now acute nationalism in Europe had closed the markets, resulting in an excess of agri- I cultural products. MR LLOYD GEORGE’S VIEWS I LONDON, June 14. I (Received June 15, at 5.5 pun.) Mr Lloyd George, speaking at Carnarvon, said: “If the Economic Conference succeeds it will be splendid. If | it fails it will not be an irrevocable 1 disaster, provided failure is not marked by serious resolutions resolving that

nothing must give the world a chance of saving itself, of which it is quite capable.” MENTION OF WHEAT POLICY CURTAILMENT OF ACREAGE URGED. LOInTDON, June 15. (Received June 16, at 0.55 a.m.) The pace of the conference is beginning to tell. The long sessions, unofficial meetings, and nightly social engagements resulted in barely 100 being present at the opening session. The speech of Senhor Damatta (Portugal) failed to arouse interest, but the attendance was large, including Mr Forbes and Mr Masters, when Mr Soong (China) spoke. Sir Bruce will not participate in the main .debate, reserving the Australian case until the committees meet. The conference heard a vigorous speech from Mr Bennett (Canada), who made the first definite disclosure of a wheat policy and strongly urged the curtailment of acreage pari passu and a concerted effort by importing countries to enlarge their demand instead, as hitherto, of aggravating a fall in price by defensive tariff increases. There is a suggestion in the lobbies that Argentina will be among those nations favouring restrictions.