WORLD CONFERENCE

Southland Times, Issue 22041, 14 June 1933, Page 7

WORLD CONFERENCE

OPENED BY THE KING DELEGATES WELCOMED OVER SIXTY NATIONS COMMON ENDEAVOUR The World Economic Conference was opened in the Geological Museum, South Kensington, London, on Monday afternoon, when the representatives of over 60 nations were present. The object of this great conference, which was opened in person by his Majesty the King, is to resolve the “prevailing conflict of national economies” and to concert measures for the economic and financial reconstruction of the world. The Preparatory Commission of Experts for the conference which completed on January 19 at Geneva the task of drawing up a draft annotated agenda, in its report gave the peoples of the world a grave warning that failure in this critical undertaking threatened a world-wide adoption tf ideals of national self-sufficiency which could unmistakably thwart the lines of economic development. The responsibility of Governments was clear and inescapable, for the consequences of failure would be the result not of any inevitable natural law, but of the failure of human will and intelligence to devise the necessary guarantees of political and economic international order. The report gives the following agenda for the conference:— (1) Monetary and credit policy. (2) Prices. „ (3) Resumption of the movement of capital. (4) Restrictions on international trade. (5) Tariff and treaty policy. (6) Organization of production and trade.

KING'S SPEECH

HOPES FOR SUCCESS NEED OF GOODWILL AND CO-OPERATION DEBTS MUST BE SETTLED (United Press Assn—Telegraph Copyright.) London, June 12. His Majesty the King declared the World Economic Conference open at 3 o’clock this afternoon. His speech was broadcast throughout the world. His Majesty said: At this time of widespread economic distress it is with a feeling of deep responsibility that I welcome you to this country. I wish to express my confidence that this common endeavour will have beneficial results. The greatest gathering of statesmen ever assembled attended the opening in the Geological Museum. The King was followed by the president of the conference, Mr MacDonald, who said, among other things, that the question of war debts must be settled once and for. all. “We must not fail—we are determined to succeed,” he said. Crowd Cheers His Majesty. When the King opened the conference he addressed representatives of 66 nations containing 2,000,000,000 people. Three hours before the conference began a great crowd, notably cosmopolitan in character, had assembled outside the entrances and the King, who drove from Windsor, was loudly cheered on arrival and as he left. As the King entered the conference, escorted by Mr MacDonald, Sir Eric Drummond, Secretary-General of the League, and M. Avenol, secretary-general of the conference, everyone present rose and remained standing while his Majesty delivered his address. He referred to the League, the work of which he always followed with the keenest appreciation, and said that without the League and its ideals he doubted whether the conference could ever have taken place. He also recognized the spirit of helpful cooperation which brought the representatives of States, not members of the League, to these discussions and extended a special welcome to the Empire delegates. Interposing a passage in French the King said:— It is with very profound emotion that I see around me this august assembly which seems so vast, but which represents an infinitely vaster contemplation—the hope and wishes of the entire world. The world is in an unquiet state and for you who, from to-day, begin the work of restoration the task is heavy. It will not be achieved except through goodwill and sincere co-operation. I extend my hand to you and with all my heart I wish that your efforts will be brought to a happy result which the peoples of the world await with' impatience. Desire To Reach Agreement. Continuing in English, the King said the evidence of a real desire to reach agreement gave him hope. All nations were suffering from a common ill shown only too clearly by the unemployment figures, the meaning of which in terms of human suffering had been his constant concern in recent years as it had been of everyone present on whom the responsibility of government had rested. “It cannot be beyond the power of man so to use the vast resources of the world as to ensure the material progress of civilization,’’ said his Majesty. “No diminution in those resources has taken place. On the contrary discovery, invention and organization have multiplied their possibihties to such an extent that the abundance of production has itself created a new problem and, together with this

amazing material progress, there has come a new recognition of the interdependence of nations and the value of collaboration between them. Now is the opportunity to harness this new consciousness of common interests to the service of mankind.” The King concluded: “I pray that the results of your labours will set the world once more on the path of prosperity and ordered progress. ’ The King remained while the speech was translated, after which he left, escorted by the Prime Minister. Mr MacDonald’s Speech. Mr MacDonald, on returning, addressed the conference and briefly outlined the state of the world that made the conference necessary. “The economic life of the world,” he said, “has for years been suffering from a decline which closed factories, limited employment, reduced the standard of living, brought some States to the verge of bankruptcy and inflicted upon others recurring budgets that cannot be balanced. Since 1929 prices have fallen and kept well below the level at which production can be remunerative. They have fallen irregularly, moreover, and have distorted normal economic relationships. The fall in prices has add-

ed oppressively to the burden of world indebtedness. In 1932, compared with 1929, the production of raw material fell 30 per cent, and exchange between town and country has been tragically limited. The national income has fallen seriously everywhere—in some countries between 40 and'so per cent. The general crisis is accentuated by restrictions, by tariffs, by quotas, by exchange control. It has reduced international trade between 1929 and 1932 to less than threequarters in volume and to about half the price. Inevitably, irrespective of policy and forms of government, unemployment has mounted until the world figure has reached 30,000,000. This cannot go on.” War Debts. Behind the subjects he had mentioned, Mr MacDonald said, was another of first rate importance, namely, war debts. The conference was not constituted in such a way as to enable it to consider and settle the matter. Proceeding, Mr MacDonald said: “The war debts question must be dealt with before every obstacle to general recovery has been removed and it must _ be taken up without delay by the nations concerned. Lausanne has to be completed and this vexed question settled once and for all in the light of the present world conditions. This con-

ference is the sequel to the work done at Lausanne last year when, by conditional agreement on how to deal with war debts and reparations, Europe was saved from immediate financial collapse.” The world could not right itself without international agreement. The last few years had proved that a purely national economic policy impoverished other nations and those who pursued it. The nearer they could make the world an economic unit the better would it be for each nation. The Prime Minister stressed that rapidity in agreement was essential to success. A Bureau Formed. On the proposal of the president a bureau of the conference was constituted as follows: One representative from the delegations of each of the following countries: Argentina, China, Czechoslovakia, France, Germany, Great Britain, Hungary, Italy, Japan, Mexico, Netherlands, Spain, Sweden, the United States, the Union of Soviet Republics and one British Dominion (Canada). The bureau held a private meeting at the end of the plenary session. The conference will resume tomorrow, when Mr Cordell Hull (United States) will be among the speakers. COMMODITY PRICES URGENT NEED FOR RAISING. SIMPLE OPENING CEREMONY. (United Press Assn.—Telegraph Copyright.) London, June 12. The conference is unique because it was inaugurated without a single nation suggesting a vestige of policy. There is at least one point on which the Empire delegates are in strong agreement —the uplifting of commodity prices. General Smuts revealed that it was the crying need of his country and he found Australia and New Zealand similarly obsessed. General comment draws attention to the quiet simplicity of the opening; indeed the silence was almost grim. All agree that the King set a splendid keynote with which Mr MacDonalds supplementary reiteration against failure was in keeping, but as yet it is too early to find any indication of a reaction. Mr Cordell Hull said: We have some surprises to spring. The delegates wore morning dress only. Touches of colour were two Arabian Sheiks in flowing robes and cowls and the inescapable heliotrope creation of General Smuts woman secretary. The speeches begin at 10.30 to-mor-row morning. OPENING SPEECHES REDUCED PURCHASING POWER. A PROBLEM OF ADJUSTMENT. (United Press Assn.— Telegraph Copyright.) (Rec. 12.5 a.m.) London, June 13. Showing an earnest desire to get to grips with the problems before it, the World Conference did not dissent from the bureau’s proposal to limit the general debate to three days and the speeches to 15 minutes. The president has discretion to extend them if a speaker is making a useful contribution to the conference’s work. The opening speaker was M. Daladier. M. Daladier, who spoke for eight minutes, traversed the difficulties .of production and exchange under which two-thirds of the world’s population were existing. Agriculture, he said, suddenly found that prices had fallen by half, sometimes by two-thirds. How could they be deprived of purchasing power and continue to be customers in industry? To the evil of post-war mass production was added the instability of currency. A restoration and maintenance of the freedom of the movement of gold was as indispensable as a restoration and circulation of goods. What would they say of an engineer who worked with an indiarubber footrule? The adoption of a 40-hour week within an international framework was worthy of consideration. There was a tendency for all Government policies to run counter to one another. These must be harmonized to avoid economic warfare. Signor Jung (Italy) emphasized the transcendence of a settlement of war debts. The fact that all nations, wealthy and otherwise, suffered the same ills, unemployment and a decline of real prices, proved that the evils were outside monetary fields, he said. It was not logical to deplore an excess of productive equipment and simultaneously expand it by forced injections of credit. It was a problem of adjustment. They must co-operate to enable the investor to feel that his interests were safeguarded, and in this connection economic efficiency was paramount. General Smuts (South Africa), one of the three survivors of the Peace Conference, said he had seen fears of economic warfare realized. He now feared the fate of civilization if the conference failed. He implored the conference to separate politics from economics and appoint committees of experts to advise on the right steps for world recovery, NO SMOKING FRUITFUL WORK DIFFICULT. IMPRESSIONS OF SPEAKERS. (United Press Assn.—Telegraph Copyright.) (Rec. 1.25 a.m.) London, June 13. The opening of the conference was marked by grey skies which brought gloom to the chamber. Informal conversations indicated that few constructive speeches were likely. The delegates arc withholding their plans until the committees are constituted. Fruitful work in the chamber was rendered extremely difficult by the prohibition of smoking, the delegates spending most of their time in the lobbies where they were able to exchange ideas in friendly confidence. Even with the delegates in lounge suits the conference retained its atmosphere of homogeneity, though many delegates were less impressive in appearance. M. Daladier, nuggetty, and filled with the Gallic fire of a Breton, spoke with manuscript, but seldom referred to it. He possesses a manly oice with a delightful timbre and is always arresting. He made a great impression. Signor Jung (Italy), who is a sexagenarian, is thick set and of medium height. Wearing the Fascist emblem in his buttonhole, he spoke with a nerfect English accent. He has a deliberate, quiet delivery. Signor Jung approached nearer to bleak facts than any statesman has yet dared. GOVERNMENT BANQUET DELEGATES ENTERTAINED. DIFFICULT WORK AHEAD. (United Press Assn.—Telegraph Copyright.) (Rec. 7 p.m.) London, June 12. The Government gave a banquet to 600 conference delegates at Grosvenor House Hotel, Mr MacDonald presiding. M. Daladier (France) was on his right and Mr Cordell Hull (United States) on his left. Mr de Valera was the only notable absentee. General Sir lan Hamilton, who was attending another dinner in the hotel, sent in five pipers of the Gordon Highlanders to play a triumphal march round 50 tables. Mr MacDonald, in proposing the toast

of the guests, said they were facing the hardest work ever attempted by any conference. M. Daladier, responding, expressed a hope for the success of the conference. Mr Hull said that commerce between the nations was the world’s real peacemaker. Miss Ishbel MacDonald presided at a dinner at the Dorchester Hotel to 110 wives of the delegates, who later attended Grosvenor House.