ECONOMIC CRISIS

Southland Times, Issue 22012, 11 May 1933, Page 7

ECONOMIC CRISIS

WASHINGTON TALKS STATEMENT IN HOUSE OF COMMONS . TARIFF TRUCE PLAN (British Official Wireless.) Rugby, May 9. During a statement in the House of .Commons on the Washington conversations, Mr Ramsay MacDonald announced that information had just reached him that there had been a further exchange of views with the United States and he was now able to say that subject to the settlement of the actual words and while protecting the essential position of both Governments, there was every possibility of reaching an agreement as to the advisability of an immediate tariff truce. By this was meant the avoidance of any increase in the great variety of difficulties now impeding international commerce. Mr MacDonald said his four days in Washington were all too brief for agreements to be reached, but were long enough to enable Mr Roosevelt and himself to survey the ground. There were three big sections they must examine, namely, debts, the business to come before the conference, and the third section on which fairly prolonged conversation was essential so that he might inform the President how the British Government regarded the European situation with the object that their co-operation at Geneva, without forming any alliance and without reaching any solid and sound agreement, should be as complete as a human being with goodwill could make it. There was complete unanimity of opinion that the International Economic Conference could not be fully successful unless the debt difficulty was removed, and the final settlement was going to take a little time. 1 I do not mean that it will be a longish time, but there arc so many issues involved in a complete and final settlement,” said the Prime Minister. Awkward Hurdle.

Mr MacDonald said it was never contemplated tha»t war debts should come before the Economic Conference, and debt negotiations would have to go on concurrently and on parallel lines. The instalment due on June 15 would be an awkward hurdle, but what was required was a quiet survey of the possibilities. In the meantime he hoped nothing would be said that would increase the difficulties. Mr MacDonald also referred to the importance the British and American Governments attached to raising wholesale prices and reaching an agreement on the international relationship of currencies. Security was also very fully considered. “I am very happy to say the United States is prepared to play a further part in tranquilizing Europe by agreeing, if the Disarmament Conference comes to anything like a successful issue, to take part, in consultative pacts, the effect of which will be to increase the security . of Europe and the safety of nations against war,” said Mr MacDonald. “This is a very considerable advance. Mr Stimson began it in that very courageous statement he made before he went out of office regarding the need to redefine neutrality, and the present Government has expressed its intention of going further and making those obligations definite and authoritative.” No Concrete Proposals. Mr G. Lansbury, Leader of the Opposition, complained that Mr MacDonald had submitted no concrete proposals which the Government intended to advocate at the World Conference, and the House had been told nothing definite on the war debts question. “We ought not to be too mealy-mouthed on the subject, seeing that we cancelled £1,000,000,000 of Italy’s and France's debts to us and we allowed many more millions to go by default,” he said. He wanted to know exactly what was meant by raising world wholesale prices. The poor would have to pay them. Thus they were another form of reducing wages. The world’s troubles had been caused by the huge pile of debts. Instead of the Governments facing this it was renewing loans and increasing the difficulties. Sir Herbert Samuel said Mr MacDonald was entitled to the country’s thanks for his talks with Mr Roosevelt, for economic and political AngloAmerican co-operation ought to be the keystone of our international policy. The world depression emanated from America, and when prosperity returned there it would return to the world. The House did not desire to embarrass the Government. They had been reticent on the war debts question, but the opinion should now be voiced that the United States should show an accommodating spirit. Sir Herbert Samuel continued: We are practically the only country fulfilling the war’s financial obligations. The Government would be impotent to lead the World Conference owing. to contradictions in its own tariff policies. While seeking world tariff reductions it was busy imposing new duties and quotas.” , Greater Security. Sir Austen Chamberlain said the best news from America for many years was the decision that if a satisfactory disarmament convention was reached the United States would participate in consulative pacts for the greater security of the nations. For this alone, which would deeply affect the peace of the world, Mr MacDonald’s trip had rendered a great national and international service. ' Sir Samuel Hoare said that an AngloAmerican common aim to raise the prices of commodities was the most hopeful feature which had arisen for three years. This was far more likely to succeed since the United States had gone off gold. He suggested that the best way of meeting our debt to America, even if reduced, would be to purchase silver from the Indian Treasury and transfer it to the United States. This would stimulate, trade with India and China by raising the price of silver. Sir John Simon, replying, said that while a tariff truce was necessary tor the period of the conference, it by no means followed that the present comparative levels between high and low tariff countries would continue ad infinitum. It was a great thing that Mr Roosevelt and the British. Government had agreed upon great objectives—disarmament, increased security, cutting of trade barriers, and stabilization of currencies. These were highly valuable results of Mr MacDonald’s visit. DEBT DISCUSSIONS INDEPENDENT OF CONFERENCE. (United Press Assn.—Telegraph Copyright.) Washington, May 9. The Secretary of State, Mr Cordell Hull said to-day that it was expected to carry on the war debt negotiations during the time of the World Economic Conference, but to conduct them independently of its sessions. Mr Hull added that it had not been decided yet whether these negotiations should take place in London or through diplomatic channels in Washington. Asked whether this plan for discussing the war debts simultaneously with the conference would not require special powers from Congress, Mr Hull (said the negotiations could be con-

ducted without such a resolution, though in that case definite commitments could not be made. “A LANDMARK IN HISTORY” NEW ZEALAND’S REPRESENTATION. (Per United Press Association.) Auckland, May 10. The importance of New Zealand’s representation at the World Economic Conference was emphasized by Lord Bledisloe speaking at the teachers’ refresher course at the Auckland Training College. “The announcement of the New Zealand delegation to the conference is a landmark in the history of the Dominion,” said his Excellency. “We all, I am sure, wish every success to the mission of the Prime Minister and the Minister of Industries and Commerce. There is no country in the Empire so dependent for its economic existence upon external trade, and none therefore more concerned to see a sound and permanent solution of the problem of international commodity distribution and a reliable system of world currency which may set the wheels of industry once more in motion. Our statesmen delegates, whatever be their political convictions, can be trusted to remember New Zealand’s trade interests are inseparably bound up with those of the Motherland. No scheme which is inimical to her manufacturers, farmers or shipping is calculated in the long run to benefit any class in this Dominion. The hopes and prayers of every section of the community for the successful outcome of their labours will go with them.”