THE CONFERENCE

Southland Times, Issue 22042, 15 June 1933, Page 7

THE CONFERENCE

OPENING DEBATE AGREEMENT IMPERATIVE THE GOLD STANDARD RESTORATION URGED (British Official Wireless.) Rugby, June 13. Several prominent delegates took part in the preliminary general discussion at to-day’s session of the World Economic Conference. While different aspects were discussed by different speakers, there was a general recognition that an agreement had to be reached and vital decisions taken by the conference unless the world situation was to develop into one of extreme and incalculable gravity. M. Daladier (France) said: “We believe it is first necessary to put an end to the war of money and its instability and give commercial exchange an indispensable guarantee of monetary security.” . ~ Signor Jung (Italy) stressed the necessity for a real stability of values. He said it was useless to create illusive values. The stimulus of credit could not be increased merely by increasing the supply, of credit. . General Smuts (South Africa) _ emphasized the need for quick decisions. Mr Ishii (Japan) said they had burned the bridge behind them and failure would mean disaster. Japan desired conditions making it possible for a general restoration of the gold standard. Mr Ishii advocated immediate temporary measures in connection with currency and credit, trade barriers and price levels. Japan was ready to consider the obviation of exchange fluctuations pending a final return to gold. He advocated the unrestricted application of the most favoured nation clause. Stabilization of Currency. M. Beck (Poland) considered the stabilization of currency should be kept in the forefront. No artificial measure could restore prices to where they were before the crisis. All efforts should be directed towards reconstructing the stability of international relationships. Senor Marino (Cuba) said that if the conference did not succeed in reducing the very high rate of tariffs existing in the world to-day, it would have failed in its principal task. Baron von Neurath (Germany) emphasized the desire of his country to collaborate in the spirit of the Kings opening address He remarked that the interests of the creditor and debtor countries seemed to differ, and the gold standard countries seemed to have other interests than the countries which had abandoned the gold standard or which required exchange regulations for the protection of their currencies. But the conference in an overwhelming desire to acknowledge common interests had proved most strikingly that all those differences were only differences in appearance. Industry could not prosper if agriculture did not flourish. A creditor could not exist it a debtor perished, and vice versa. Trie gold currency became meaningless it the free circulation of gold was not guaranteed. They must find courage to carry through the solutions while remembering that the success of the conference was largely dependent upon the fulfilment of great political tasks. Need of Clear Understanding. Baron von Neurath urged a clear understanding of Germany s situation as a prelude to the selection of proper remedies. International debts could, only be paid in goods and services after credit and financial problems had been satisfactorily settled through peaceful co-operation. Herr Hitler’s declaration paved the way to a return of confidence for Germany’s acceptance ot Mr MacDonald’s plan as a basis for a convention, and it gave _ disarmament a new impulse and spirit, inspiring the hope that these actions would characterize Germany’s approach _to the world’s financial and economic probNeville Chamberlain will make an important statement putting forward the British proposals at to-morrow s sitting. , , ' . Dr Dolfuss is also expected to speak before returning to Vienna. _ Although the afternoon session of the conference was timed to end at six, it lapsed an hour earlier, _ no speakers being available. A contributory reason was the all-day distraction as to the Anglo-American debt negotiations, which inevitably precipitated themselves into the atmosphere of the conference, from which Mr Cordell Hull was an absentee. Many of the delegates preferred to go to the House, ot Commons and hear Mr Chamberlain s statement. It was not surprising when Mr MacDonald announced that nobody was ready to continue the debate. Mr Hull Redrafting Speech.

It is an open secret that Mr Hud is redrafting his speech in the light of the war debts negotiations and also the outspoken references thereto in most of the speeches. It is fairly certain that specific subjects will be referred to in the House of Commons on Fnaay, when the real work of the conference will begin. . General Smuts’ suggestion to . leave economics wholly to experts is not finding favour. Politicians assert that they always in the long run have to cut the knot and save the experts debating interminably. Mr Ishii left no doubt that lower tariffs are an essential condition of Japan’s willing co-operation, a sentiment which has disturbed other manufacturing countries.

USE OF SILVER QUESTION FOR CONFERENCE. (United Press Assn.— Telegraph Copyright.) London, June 13. Mr R. B. Bennett told journalists that the World and Ottawa Conferences were unrelated except in that the “latter reached agreements. Let us hope we shall agree here.’’ Important questions for the conference were the use of silver as an alternative to gold and its stabilization. Failing stabilization it had become almost impossible to transact international business. Canada had 'come here in her own interests. “As far as we are concerned,” he declared, “there is no common plan. It is impossible for any statesman to speak on behalf ot the whole Empire.” UNUSUAL POSITION DELEGATES REFRAIN FROM SPEAKING. APPOINTMENT OF COMMISSIONS. (United Press Assn.—Telegraph Copyright.) (Rec. 7.0 p.m.) London, June 14. A conference at which the delegates do not want to speak is somewhat of a novelty, but yesterday’s renunciations mean a speedy winding up of the general debate and the early appointment of the two main commissions —mone-

tary and economic. The French are advocating a third commission to deal with questions of production and labour. The American delegation strongly desires to secure the chairmanship of the Monetary Commission, but its claim is opposed by the majority of both the great and the smaller Powers, among whom unchecked depreciation of the dollar aroused criticism. Probably a neutral chairman will be chosen. The conversations continue between British and French bankers and Treasury experts. Dr Schacht, President of the Reichsbank, resumed his talks with the representatives of Germany’s creditors. TARIFF TRUCE NINETEEN STATES AGREE. DURATION OF CONFERENCE. (United Press Assn.—Telegraph Copyright.) (Rec. 12.30 a.m.) London, June 14. At to-day’s session of the World Economic Conference Mr MacDonald stated that nineteen States, the majority of whom played an important part in world economics, had agreed to a tariff truce during the duration of the conference. He earnestly appealed to all States to give adherence to the truce by Friday, which would be a good augury for the work of the conference. M. Hymans (Belgium) was appointed vice-president. On a sunny morning the session began with a buzz of expectancy with the announcement of speeches by,Dr. Dolfuss, Mr Chamberlain and M. LitvinofE. Most of the glamour centred in the diminutive, boyish Austrian Chancellor, Dr. Dolfuss, who is beset with a tense anti-Nazi situation at home, as a result of which an aeroplane is waiting at Croydon to whisk him to Vienna to-day. His speech was a model of gravity. He plumped heavily for a reduction of wheat production as a check on price depreciation. Mr Chamberlain’s 35 minute survey created an excellent impression. He gave detailed suggestions for uplifting price levels after a final settlement of war debts.