WORLD CRISIS

Southland Times, Issue 21998, 24 April 1933, Page 7

WORLD CRISIS

SEEKING WAY OUT

RESTORATION OF TRADE

WASHINGTON PARLEY

MR MACDONALD ARRIVES

(United Press Assn—Telegraph Copyright.)

New York, April 21. On his arrival at New York to-day Mr Ramsay MacDonald was given an official reception and was met by the British Ambassador, Sir Ronald Lindsay, who later travelled with him to Washington. The officials accompanying Mr MacDonald include Sir Robert Vansittart, Sir Leith Ross and Mr A. C. Overton (Board of Trade). In a written statement to the Press Mr Macdonald said:— “I hope to have with the President a frank exchange of views over a wide range of issues, both economical and political. In the short time at our disposal definite arrangements, of course, are not to be looked for. They concern other countries as well as ourselves, but the way must be paved for concerted action, and I believe our meeting is necessary to that end. I wish to take the opportunity as I land in the United States, of greeting my American friends. I well remember the warm welcome and generous hospitality you gave me in 1929.

Courageous Efforts.

“The friendship between our countries was then augmented and has continued, I am happy to feel, to this day. Particularly am I pleased to meet your President and discuss with him our common responsibilities. On March 4 I listened to his inaugural address, Since that day I have followed with increasing interest the courageous efforts he has been making to fulfil the expectation which sprang from that remarkable speech. "Your President has been good enough to invite me, both as Prime Minister of my country and as chairman of the World Economic Conference to come over to explore the problems which have to be dealt with at the gathering. I have accepted because I believe we two are in harmony of spirit regarding all great world causes, and agree that the most pressing of these at the moment is the removal of the economic stress that has befallen us. We must strive to clear the obstacles which block the highways of trade, both within our own countries and between nations, and so restore hope of employment to the workless millions who look to earn their living in factory and field.” Abandonment cf Gold.

Mr MacDonald added: "The abandonment of the gold standard by the United States affects England not at all so far as I am concerned.” Asked in a brief interview if, he were disappointed in Mr Roosevelt s action he replied: “Oh gracious, no,” adding that he really was without information concerning the development, aside from the bare fact that this country had for the time being abandoned the gold standard. “It only brings out in a higher light,” he said, “the distress of the world, and that is what your President and I are trying to face and, I hope, to face successfully.”

FRIENDLY WELCOME

MR RAMSAY MACDONALD.

MEETING WITH MR ROOSEVELT.

(United Press Assn.—Telegraph Copyright.) (Rec. 6.30 p.m.) Washington, April 22. Mr MacDonald banished with emphatic words to-night all talk of a British estrangement with the United States as a result of abandoning the gold standard, and began with Mr Roosevelt quiet talks on which the world has built hope for the beginning of better times. The British leader was welcomed in hearty and unceremonious fashion by the President and his family. Mr and Mrs Roosevelt walked out beneath the portico of the executive mansion to greet the guest with outstretched hands and friendly smiles. The President made Mr MacDonald welcome to an intimate informal dinner, then settled down for neighbourly conversations out of which both hope will come international currency stabilization and the end of the ills which have beset the commerce of the world. From the President’s own desk at White House Mr MacDonald in an emphatic manner told the world through the Press that no British official holds in his heart any enmity towards the United States for its sudden departure from the gold standard.

CONVERSATIONS BEGUN

CURRENCY STABILIZATION.

TRADE AND TARIFFS.

/United Press Assn--Te’egraph Copyright.) (Rec. 7.25 p.m.) Washington, April 22. Having turned over the details of economic matters to their respective experts for further discussion, Mr Roosevelt and Mr MacDonald appear to be awaiting the arrival of M. Herriot to see if his views fit the general scheme so far drafted. Despite protestations in all quarters of amity and a feeling of co-operation, the super-heated political atmosphere in Washington is certainly not conducive in a traditional sense to calm, reasoned decisions. There was unusual warmth in Mr MacDonald’s Press Club address, but by intimation he made it plain that he considered America’s abandonment of gold at least over hasty. The conversations between Mr Roosevelt, Mr MacDonald and their advisers have been strictly private. Meagre information represents them as amicable and clear of any apparent suspicion on the part of the visitors that the gold embargo was either retaliatory or solely for bargaining purposes. It is understood that two general proposals were projected: (1) Currency stabilization through a multilateral treaty fixing gold and silver at parity. It was suggested that the “metallic coverage” be reduced which would be in line with the Administration’s inflation tendencies. (2) Multilateral and bilateral trade and tariff agreements with horizontal tariff cuts.

All ceremonial calls by Mr MacDonald on Government officials were called off on Saturday at the wish of Mr Roosevelt to give them more time to pursue their discussions. In a joint statement following Saturday’s discussions the two leaders said that the main problems for the World Economic Conference were considered. A decision had been reached that these be allocated in the first instance to experts who would commence their discussions this afternoon and continue them to-morrow. The dominant place accorded world money stabilization remained plainly evident in the light of emphasis placed on the question at White House and the State Department. Suggestions are being considered for negotiations to re-

duce the gold backing behind national currency units, the aim being to lift commodity prices all over the world, and thereby spur world trade.

Disarmament and agreement among the nations that would solve monetary problems were pointed to by My MacDonald as the first steps needed to start the world moving back towards better days in a speech before the National Press Club on Saturday afternoon. “If you want to be secure and protected, come to an agreement with other nations on currency. Agreement is the only protection,” he said. Mr MacDonald told of Britain’s efforts to preserve the gold standard and, referring to the United States’ departure from gold, said it had created a very delicate situation internationally. It could not be helped and no one could be blamed. One of the great purposes of the World Economic Conference, he said, would be to save democratic government. He emphasized that democracy had raised expectations. Empty promises could no longer be given by governments. He urged unity among the nations to meet their common problem. He denied Britain’s intentions to adopt a retaliatory policy. “Retaliation is repulsive,” he said. “Retaliation is to drag conditions down.” He urged the completion of agreements, and then said those agreements should be carried out by Americans like honourable gentlemen. , ~ T Meanwhile, in the Senate Mr Lewis (Illinois) predicted failure for the Economic Conference if, European Powers insisted upon a discussion on war debts before international commercial co-operative steps. Mr Lewis said he understood that Britain and France were contemplating efforts, before any concessions were made to the United States touching on trade, that there shall first be an understanding of some form on the cancellation or revision of debts. If this were so, he said, the proceedings had best end now, for the American people were in no temper for such threats. AT WHITE HOUSE

MR MACDONALD INTERVIEWED.

NO SPECIFIC PROGRAMME.

(United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) Washington, April 21. Soon after his arrival at White House to-night Mr Ramsay MacDonald dedicated himself to - seeking with Mr Roosevelt a solution of the economic crisis, brushing aside suggestions of British anxiety over the recent American action in going off the gold standard. He told newspapermen that it was his purpose to work whole-heart-edly with Mr Roosevelt to improve conditions. Standing behind the desk of Mr Roosevelt in the executive office, he unfolded his hopes for the conference. He declined to be quoted directly. In an informal talk he stressed the need for starting again an exchange ot trade in international commerce. Asked if war debts would come up in the conference, Mr MacDonald said this was one of the features of the landscape that must necessarily be surveyed. He said he did not know about an’- specific proposal on debts. To a question about the stabilization of currency, he replied that the United Kingdom had long sought an oppoi - tunity to bring this about. Mr MacDonald emphasized that he was a guest and as such was submitting no specific programme, at least just now. But he added that there would be a holding back on his part to pool his thoughts with those of Mr Roosevelt and the statesmen of other countries in a thorough exploration of the world economic situation.

CONFERENCE TOPICS

UNITED STATES’ POSITION.

DEBTS ONLY ONE FACTOR.

(United Press Assn—Telegraph Copyright.) Washington, April 21.

The position of the United States on most of the outstanding subjects to be taken up by Mr Roosevelt and Mr MacDonald was outlined in well-in-formed circles as follows: War Debts.—The Administration is definitely committed against cancellation by the Democratic platform, but is not committed against their postponement or reduction, though such action will require Congressional approval. The Administration has drawn a distinction between the nations which have met their payments, such as Britain, and those which have not, notably France. It regards debts as only one factor in the world economic condition. ... ,• Currency stabilization is internationally regarded as fundamental to a revival of world trade and the United States is ready to join in efforts to establish a revised international standard to which national currencies will be attached at new parities. _ Tariffs—The Administration is willing to reduce tariffs on condition that the other nations do likewise, and favour.. a policy of tariff-bargaining by mutually advantageous reciprocal agreements. Wheat—An agreement will be sought among the other leading wheat-pro-ducing nations to cut the production to fit world consumption and avoid heavy surpluses which have beaten down the price. , . ... Silver.—The Administration is willing to discuss means of improving the price by international agreement. It would consider bimetallism if all the nations adopt it. Disarmament.—The heavy expenditure on armies, navieS and air forces is regarded as a drag upon the world. In the efforts to recover economic equilibrium any reasonable movements for reducing armaments or abolishing those designed particularly for aggression will be joined. , . . . , World Peace.—The Administration is committed by its Democratic platform to new provisions for the Pact of Pans to provide for consultation among the signatories in the event of any threat of a breach of its pledges against the use of force in settling international disputes. It is carefully watching public opinion on this point, however, before agreeing to such a consultative plan as that which has been proposed by Mr MacDonald at the Geneva Arms Conference.

FRENCH DELEGATION

NEW PROGRAMME NECESSARY.

(United Press Assn.—Telegraph Copyright.) New York, April 21.

A message from the He de France states that the members of M. Herriot s party fear that they face failure m the Washington conversations as the result of the United States’ action regarding gold. The delegation resented the sudden action as throwing France into monetary isolation. They doubted whether they could make any satisfactory trade arrangements with the United States now.. Complete new instructions from Paris were to be transmitted by telephone to the delegation. M. Herriot was obviously cast into gloom, but was more cheerful to-day with the prospect that at least a little time remained to work out a new programme.