BRITISH CASE

Southland Times, Issue 22043, 16 June 1933, Page 7

BRITISH CASE

WORLD PARLEY TRADE RESTRICTIONS REMOVAL IMPERATIVE ACTIVE CREDIT NEEDED (British Official Wireless.) Rugby, June 14. The general discussion was continued at the plenary sessions of the World Conference to-day. The British Government’s considered policy was stated by the Chancellor of the Exchequer (Mr Neville Chamberlain), who said that the fundamental monetary condition of recovery in prices was that credit should be actively employed. This, together with a revival of business confidence, must form an indispensable background of trade recovery. Central Banks should undertake to co-operate, with a view to securing the monetary conditions required for a rise in prices. The question was whether the Governments could actively assist by schemes of Governmental capital expenditure, which would also require consideration. The United Kingdom delegation would be very ready to examine with other delegations how far employment could be stimulated by such action. Rises in the price levels and an increase in world trade would contribute powerfully to reduce exchange difficulties, and would assist in bringing to an end both the standstill arrangements in respect to short-term debts and the transfer difficulties as regards external indebtedness as a whole. These difficulties would also be greatly diminished by the resumption of normal international lending. Obstacles to Trade. Referring to the growing obstacles to international trade, Mr Chamberlain expressed his willingness to examine proposals for attaining a reduction in excessive tariffs by mutual action. Any such proposal must be effective in securing really tangible reductions in excessive tariffs. It must command, a sufficiently general measure of support and cover a wide enough area. It must not impose upon low tariff countries disproportionate sacrifices, and must not have injurious repercussions, or lead to economic hostilities. The British view was that a reduction in Customs tariffs could best be achieved by a series of bilateral negotiations, which the conference should endeavour to promote. Commercial treaties should not be terminated before tariff negotiations were undertaken, and then only after every effort had been made to reach agreements by negotiations. The United Kingdom delegation strongly favoured the progressive abolition, of all arbitrarily imposed quotas. In view of the disastrous slump in prices the British Government was engaged in promoting the regulation of supplies of several food products. It would be prepared to co-operate in regulating supplies of wheat and other foodstuffs with a view to restoring and maintaining a reasonable level of prices. Settlement of Claims. Continuing, Mr Chamberlain said: “If a creditor country wishes to obtain payment of claims on foreign countries it must accept goods and services in settlement of those claims over and above the imports it takes in exchange for its own exports. A revival of trade largely depends upon the extent to which the creditor countries will be prepared to give practical effect to this principle. Moreover, international trade cannot prosper on a basis of the exchange of commodities between each two countries being precisely balanced.” Mr Chamberlain, in referring to State subsidies on export trade apd shipping, said they involved unfair competition, and the adoption of this policy by one Government tended inevitably to force this unsound expedient on the Governments of other countries engaged in the same trade. A determined effort should be made to secure a reduction and the eventual abolition of export and shipping subsidies by international agreement. Mr Chamberlain added: “There is close connection between the monetary and economic aspects of our problem. Action in these spheres must, be taken simultaneously. Any attempt to obtain equilibrium by further large reduction in costs would be attended by intolerable suffering without hope of success. The solution of the difficulties must be found in a recovery of the price level. The immediate aim of the monetary policy should be stabilization of currency, and its ultimate aim the, restoration of a satisfactory international standard for which gold seems most generally acceptable. We attach the greatest importance to the abolition of exchange restrictions, and , hope that the conference will take positive action to secure this end.” The Case for America.

Mr Cordell Hull (United States) said the whole price-ridden world was looking to the World Conference for leadership with a programme of basic relief and the distressed people of all lands expected concord, co-operation and constructive results. Trade barriers inevitably casued a disastrous reaction upon production, employment, prices and distribution. The strangulation of international trade revealed a most tragic phase of that short-sighted and ruthless policy. The inevitable effect had been to reduce to the lowest level all prices for primary commodities. Had not the time come for Governments to cease erecting trade barriers with their excessive rank discriminations and hate breeding reprisals and retaliations? International co-operation to-day was a fundamental necessity, and the conference should proclaim that economic nationalism was a .discredited policy. All excesses in the structure of trade barriers should be removed and. all unfair trade methods and practices should be abandoned. In the monetary field he urged suitable measures for an immediate policy for giving the greatest possible measure of stability for a period during which the ground work could be laid for enduring reform. He demanded measures for the removal of exchange restrictions, and declared that America was prepared to offer concrete suggestions. Addressing the conference the Austrian Chancellor, Dr Dolfuss, said the conference would certainly contribute a great deal towards a settlement of the debt problem and it could call into being the necessary negotiating body. A method of co-operation between the central banks should be adopted as a regular institution by the conference with a view to stabilization and maintenance of the stability of currencies. He was,pleased to announce Austria’s agreement with a tariff truce. Mr Hull’s Vagueness. Mr Hull’s keenly awaited speech scarcely bore comparison with Mr Chamberlain’s analytical effort. Mr Hull skated over the whole surface of

economies without even indirect reference to war debts, though he admitted international co-operation was a fundamental necessity. He even pleaded for liberalization of commercial policies, but it is left to individual imagination to decide whether he included America among the nations eager to sell but unwilling to buy. In redemption for the vagueness of the speech, he promised that America would submit concrete proposals in the committee stage. M. Litvinoff, in jerkey English did his best to convince the conference that Russia was in nowise responsible for or immersed in the world crisis with acute difficulties inherent in the capitalistic system. Russia was ready, if credit facilities were forthcoming, to place orders abroad to the extent of a billion dollars for the development of her resources.

Senor Lebreton (Argentina) opposed quotas. He added that the primary producing countries were encouraged to produce during the war. Now acute nationalism in Europe had closed the markets, resulting in excess agricultural products. Dominion Delegates. With most of the more important nations having spoken, the conference debate is expected to finish on Thursday night. Mr S. M. Bruce has still not submitted his name to speak. Mr G. W. Forbes is unlikely to do so at the present stage. Mr.R. B. Bennett may expound the Canadian view to-morrow. The creation of commissions will mean that actual work will be begun on Monday. With the Australian and New Zealand Parliaments out of session, it is not expected either will notify acquiescence to Mr MacDonald’s tariff truce appeal. In any case it is only for the duration of the conference and subject to a month’s notice of termination. WHEAT POLICY CANADA’S CASE PRESENTED. CURTAILMENT OF ACREAGE. (United Press Assn.—Telegraph Copyright.) (Rec. 12.55 a.m.) London, June 15. The pace is beginning to tell. Long sessions, unofficial meetings and nightly social engagements resulted in barely a hundred being present at the opening session this morning. The speech of the Portuguese, Dr. Damatta, failed to arouse interest, but the attendance was large, including Mr Forbes and Mr Masters, when Mr F. V. Soong (China) spoke. Mr Bruce is not participating in the main debate, but is reserving Australia’s case for the committee stages. The conference heard a vigorous speech by Mr R. B. Bennett, who made the first definite disclosure —Canada’s wheat policy. He came out strongly for a curtailment of acreage pari passu, and a concerted effort by importing countries to enlarge their demand, instead, as hitherto, of aggravating the fall in price by- defensive tariff increases. There is a suggestion in the lobbies that Argentina will be amongst the restrictionists. CURRENCY QUESTION EARLY AGREEMENT EXPECTED. (United Press Assn.—Telegraph Copyright.) (Rec. 7 p.m.) London, June 15. The Financial News says that real progress has been made towards a general understanding on the subject of currency stabilization. M. .Bonnet had a long conversation with Mr Neville Chamberlain and Mr Cordell Hull, and well-informed French circles believe that an agreement will be only a matter of days. N.Z. DELEGATION ARRIVAL IN LONDON. STATEMENT BY MR FORBES. (United Press Assn.—Telegraph Copyright.) ' London, June 14. Mr G. W. Forbes and Mr R. Masters and party have arrived. All are well. Mr Forbes said he regretted he had heard nothing of the opening proceedings of the conference. The people of New Zealand were placing great hopes in the conference. She had felt the full effects of the .world-wide depression. The heavy drop in prices had necessarily reduced her capacity to buy British manufactures. He thoroughly approved of limitation of the general debate at the conference in a desire to obtain quick decisions. He had no cut and dried views on any of the conference questions, and he was only eager to co-operate in every way towards a world recovery. There was no immediate prospect of any alteration in the New Zealand exchange, except in accordance with the decisions of the conference. MR FORBES AT WESTMINSTER. (United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) London, June 15. Mr Forbes, accompanied by Sir Thomas Wilford, visited the House of Commons and heard Mr Chamberlain’s statement on war debts. Mr Forbes was delighted to hear his Majesty’s and Mr MacDonald’s conference speeches by wireless on board ship. OTTAWA AGREEMENTS FOREIGN ATTACK INDICATED. (United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) London, June 14. There is unmistakeable and growing evidence in the lobbies that the Americans and Europeans are determined to attack the Ottawa agreements. American journalists sought Mr S. M. Bruce to discover his views on Mr Cordell Hull’s and M. Litvinoff’s speeches, which they interpreted as implying the strongest disapproval of Ottawa, but the Australian and other dominion delegates saw nothing in,the slightest bearing on Ottawa in the speeches. IF CONFERENCE FAILS NOT IRREVOCABLE DISASTER. (United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) London, June 14. Mr Lloyd George, speaking at Carnarvon, said: “If the Economic Conference succeeds it will be splendid; if it fails it will not be irrevocable disaster provided failure is not marked by serious resolutions resolving that nothing must give the world a chance of saving itself, of which it is quite capable.”