WORLD PARLEY

Southland Times, Issue 22011, 10 May 1933, Page 6

WORLD PARLEY

N.Z. DELEGATION PRIME MINISTER GOING MR MASTERS INCLUDED DEPARTURE ON FRIDAY (Per United Press Association.) Wellington, May 9. The Prime Minister (the Rt. Hon. G. W. Forbes) announced last evening that the question of the representation of New Zealand at the World Economic and Monetary Conference, which is to commence in London on June 12, under the auspices of the League of Nations. had been fully considered by Cabinet and it had been decided that, the Prime Minister and the Minister of Industries and Commerce (the Hon R. Masters) should represent the Dominion. The delegation will also comprise:— Mr C. G. Rodda, Assistant-Secretarv to the Treasury. Professor A. H. Tocker, economist, of Canterbury University College, Mr C. A. Jeffery, private secretary to the Prime Minister. It is necessary that the delegation should leave Wellington by the Rangitata on Friday. Importance of Conference. “I desire to say,” stated Mi - Forbes, “that in determining on this course, the Government considers that it is all important, as the Economic Conference must be to the whole world the gathering of representative Ministers from every part of the British Empire. It also affords an opportunity for consultation which must not be neglected, particularly in view of the rapid developments in connection with the trade relations of Great Britain, not only tn the countries of the Empire, but its foreign customers, who are competitors of the Empire producers in the British market. There are also other vitally important matters directly affecting New Zealand, which need discussion and decision. No words of mine are needed to emphasize the importance of the Economic Conference, which meets to discuss frankly and, if possible, to solve a most complicated and difficult set of problems. On the practical and prompt results largely depends whether the world is to drift on into economic chaos and general default, or whether, as the happier alternative, it will regain that confidence which will lead to a restoration of prosperity. Nature has not been unkind. The problem is not one of famine, but of over-supply, and this surely is capable of solution now that all nations recognize the gravity of the situation, when in spite of all measures so far devised by them, world trade had been so depressed that countries are admittedly not far away from general economic collapse, with at least 30,000,000 workers out of employment. Questions For Consideration “The main questions for consideration at the World Economic Conference may be briefly set out as follow: — (a) —Financial questions: Monetary and credit policy, exchange problems, the level of prices and the movement of capital (b) —Economic questions: Improved conditions of production and trade, interchanges with particular attention to tariff policy, prohibitions and restrictions of importation and exportation quotas, and other barriers to trade producers’ agreements. “The monetary objectives will undoubtedly be the restoration of an effective international monetary standard, and the general stabilization of currencies, combined with steps to bring about a higher level of world prices. Such questions as war debts and other debts and the international use of gold and central banking policies must also come up for consideration on the economic side. Efforts will be directed towards the lowering of tariffs and removing restrictions and hindrances to the greater freedom of international trade with New Zealand. Prosperity depends on the vitality and soundness of the overseas markets for its products. It is a debtor country with obligations impossible to meet fully without a profitable return upon its exports. “Every question of the conference agenda bears upon our own economic future, but apart from those questions I visualize the valuable opportunity of discussing with the representatives of the other dominions of the Empire, and with British Ministers, many important questions of direct and immediate application to our own difficulties. For example, the question of quota restrictions on food products is vitally concerning us. Our interests have also to be watched then as is becoming quite evident. The whole question of Empire preference will come under review. “Another matter in which we have a live interest is that of embargoes imposed by foreign countries on our trade. An opportunity will be presented for very useful discussions with representatives of these countries with a view to a widening of the basis of distribution of our surplus products, and in this connection the presence and co-operation of my colleague, the Minister of Industries and Commerce will be most valuable. Monetary Stabilization. “The reactions of the Economic Conference decisions upon methods of monetary stabilization will, of. course, directly affect New Zealand which may be called upon to consider its own plans as a basis for its own monetary stability. So far as it has lain within its own power, New Zealand has adjusted itself to the drop in the national income. Severe retrenchment, interest reduction measures and the protection of the mortgagor have assisted to relieve the position, and to bridge the gap between costs and price, and the unemployment problem has been, and still is, a constant and predominant concern of the Government which can fairly claim that within the limits of its financial resources (in this instance strained to the utmost) it has done its best to relieve temporarily a difficult and distressing situation, but the real and permanent solution, of the unemployment , problem, which practically every country is at present facing, must depend upon an improvement in world conditions. Earnest hopes are centred universally in the forthcoming World Economic Conference to succeed in bringing about a substantial improvement in conditions, which must inevitably reflect itself

in easing the unemployment situation in New Zealand and thus enabling numbers of those who are now out of work again to be placed in permanent occupation. Rights of Investors. “The recent loan conversion in respect to our internal public debt indicated the willingness of our own people to meet conditions which imperatively demanded a reduction in the taxpayers’ burden, and by their example, they have created the right atmosphere for making proposals in respect to the larger portion of our indebtedness, which is domiciled overseas. The question involving the rights of investors outside the Dominion requires careful approach, and can, in the last resort, be favourably settled only by direct negotiation with the representatives of the interests concerned. If success in reducing, our overseas debt charges is to be achieved, it will only be possible by responsible Ministers presenting the case in London. This question I regard as one of paramount importance to our own Dominion. “Unpalatable as many of our remedial measures have been, though the community as a whole has loyally accepted them, the Government has gone a long way towards meeting the situation within the Dominion, and it is firmly convinced that all the major measures now required to restore economic stability can be devised only at, and following the Economic Conference and in the subsequent adaptation by the Parliament of New Zealand of a policy to co-operate in, and a general plan for, economic rehabilitation. The advantage of personal discussions with British Ministers cannot be over-estimated. Opinions can in this way be expressed and advice tendered in a manner quite impossible by exchange of formal communications between the Motherland and the most distant part of the Empire. Mr Coates Acting Prime Minister.

“The Rt. Hon. J. G. Coates, Minister of Finance and Customs, will be acting Prime Minister during the absence of the delegation. Having regard to the importance of the World Conference and the serious problems to be considered Cabinet felt that it warranted the attendance of both myself and the Minister of Finance, but having regard to the difficult position in the Dominion, Mr Coates felt that he should remain behind. Many matters to be dealt with by the conference will be of direct concern to the portfolios which he holds and he will keep in close consultation with his colleagues at Home in the matters affecting the Dominion which will be the subject of consideration by the conference.”