WORLD AFFAIRS

Southland Times, Issue 22040, 13 June 1933, Page 5

WORLD AFFAIRS

EVE OF CONFERENCE MANOEUVRES BEHIND SCENES IMPORTANT MEETINGS (United Press Assn—Telegraph Copyright.) London, June 11. Manoeuvres behind the scenes in connection with the World Economic Conference have already begun. The Sun Service learns that important meetings have been held at the Treasury between Mr Montagu Norman, Mr Harrison, of the Federal Reserve Bank, and M. Moeren, of the Bank of France, with expert advisers. These began on Saturday, and . continued throughout Sunday. It is reported that they are endeavouring to reach a temporary stabilization truce regarding the pound in relation to the dollar and the franc in relation to the pound, and will submit a fait accompli at the opening of the conference. To-day’s comings and goings at Downing Street are surrounded with secrecy. Some Ministers were hastily srunmoned to Number 10 to-night, following a despatch from Washington. Sir John Simon, who was recuperating at Le Touquet, was recalled and returned by special aeroplane. He went immediately to No. 10. The delegates’ invasion of London continued all day, many arriving by air. Dr Dolfuss, the Austrian Chancellor, who travelled in his own plane with a Fascist bodyguard, was greeted by Count Ciano and other Italians at Croydon air port. The Times in a leading article says the conference must not be allowed to fail, but must see the world on its way to recovery. If the nations do not lose all faith in the capacity of their statesmen, the difficulties are not insuperable. The responsibility of the delegates is clear and inescapable. With goodwill and determination they certainly can discharge it. Grave Situation. On the eve of the World Economic Conference the newspaper comment stresses the difficulties, but indicates that the world situation is so grave and the consequence of failure so disastrous that the nations will be driven to finding at least a partial solution of the currency and trade problem. Thus Sir Arthur Salter in an article in The Times declares: “Success means the turning of the tide, a revival throughout the world and a diminution of economic nationalism, whereas failure would involve an indefinite postponement. The conference must first face the question of currency and the monetary policy because tariff negotiations are impossible, except in relation to provisionally stabilized exchanges, while the task ot adjusting indebtedness of all kinds can only be measured when it is known how far the monetary policy is to be directed to the raising of the price level. No exchange stabilization can last, however, unless it is based on a reformed tariff system and a normally working credit system. America’s depreciation of the dollar has made stabilization more imperative. ’ According to the. Despatch several foreigners under the leadership of America and supported by Germany and Japan will vigorously attempt to kill the Ottawa agreements in order to again undersell Britain in the Empire markets. The Russians are desirous of raising industrial loans. Italy Hopeful.

The Sunday Times says Germany will use industrial States to exchange manufactures with the raw materials of undeveloped countries, which is interpreted as an attempt to regain her colonies. Italy is optimistic and will press for reduced tariffs and trade quotas, a return to gold of the dollar and sterling and the stabilization of currencies at the highest possible rate.

It is anticipated that the conference will sit daily from about 11 o’clock in the morning until 6 in the evening. The procedure still remains to be definitely settled, though it is probable that any suggestions brought forward during the second reading debate will be examined and collated by the conference secretariat and the resolutions to be laid before the conference will be framed accordingly. On the basis of the preliminary agenda prepared by the committee of experts, the conference is likely to set up two or three fairly large commissions after the second reading debate. They will have their own sub-commit-tees to consider details of the large problems remitted to the commissions, but every effort is being made to avoid cumbersome machinery and facilitate rapid work by the conference in order to release for their duties in their own countries the eminent statesmen who are serving as delegates to the conference. EMPIRE DELEGATES MEETING AT DOWNING STREET. (United Press Assn.—Telegraph Copyright.) (Rec. 1.0 a.m.) London, June 12. Empire delegates to the World Conference, including Mr S. M. Bruce, Sir Thomas Wilford, Mr R. B. Bennett and General Smuts, met at Downing Street under the presidency of Mr MacDonald and held a discussion with members of Cabinet with the object of finding the extent of unity in Imperial aims to enable a clear understanding when voting at the conference is reached. Several further meetings will be held during the conference. WORKLESS HdSTS IMMEDIATE ACTION URGED. (United Press Assn.—Telegraph Copyright.) Geneva, June 11. The Labour Conference urges the Economic Conference to agree upon immediate action in the interests of the 30,000,000 unemployed. GERMANY’S UNEMPLOYED. (United Press Assn.—Telegraph Copyright.) Berlin, June 12. The unemployed in Germany on May 31 totalled 5,000,000, a decrease of 1,000,000 this year. CURRENCY PROBLEMS GENTLEMEN’S AGREEMENT LIKELY. (United Press Assn. —Telegraph Copyright.) (Rec. 7 p.m.) London, June 12. The political correspondent of the Daily Mail says that considerable headway has been made with talks between bankers and the Treasury. An early announcement will be made in regard to the temporary stabilization of currencies. M. Moret pressed for Britain’s return to gold, but the Government insisted that it must be preceded by a settlement of war debts, a redistribution of gold, and the abolition of exchange restrictions. Nevertheless Britain is ready to accept temporary stabilization to avert the failure of currency stabilization. The bankers discussed the possibility of constituting a joint French-Anglo-American equalization fund, other-wise France and America could separately establish funds on the British model. It should then be relatively

easy to stabilize currency. A gentlemen’s agreement is considered most likely. BROADCASTING PLANS THE OPENING CEREMONY. (Per United Press Association.) Wellington, June 12. Advice from London gives the following New Zealand times for the broadcast of the opening ceremony of the World Economic Conference:—

Opening announcement 1.27 a.m., June 13. King’s speech—l.3o a.m. Descriptive commentary—l. 37 a.m. Close down —2.30 a.m. The Nev/ Zealand YA stations will broadcast the recorded version of the King’s speech at 5.45 on Tuesday evening.