TARIFF TRUCE

Taranaki Daily News, 11 May 1933, Page 5

TARIFF TRUCE

AGREEMENT PROBABLE

MR, MACDONALD’S REVIEW

WAR DEBT AND CONFERENCE

OSX ATTITUDE PLEASING

CONGRATULATIONS IN HOUSE

iritish Wireless. Rugby, May 9. During a statement in the House of Commons on thd 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 on 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 that four days at Washington were all too brief for agreements, but they were long enough to enable President • Roosevelt and himself to survey the ground. There were three big sections that must be examined —namely, war debts, the business to come before the Economic Conference, and a third section, on which a fairly prolonged conversation was essential so that he might inform the President how the British Government regarded the European situation, with the object that co-operation at Geneva, without forming any alliance and without reaching any solid and sound agreement, should be as complete as human beings 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.

“Final settlement will take a j little time,” said Mr, MacDonald. “I do not mean by that a longish time. There are so many issues involved in a complete and final settlement”

DEBT PAYMENT DATE AWKWARD.

He said it was never contemplated that war debts should come before the Economic Conference. Debt negotiations would have to go on concurrently; and on parallel lines. June 15, the date instalments are due, would be an awkward hurdle, but what was required was a quiet survey of the possibilities. In the meantime he hoped that nothing would be said that would increase the. difficulties. . .

Mr. MacDonald also referred to the importance the British and American Governments attached to the raising of wholesale prices and reaching an agreement on the international relationship of currencies. Security was also very fully considered.

“I am very happy to say that the United States is prepared to play a further part in tranquilising 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. This is a very considerable advance. Mr. H. L. Stimson, former United States Secretary of State, began it in that very courageous statement he made before he went out of office. “Regarding the need to redefine neutrality, the Government has expressed its intention of going further and making those obligations definite and authoritative.” “NO CONCRETE PROPOSALS.” • Mr. George Dansbury, Labour leader, complained that Mr. ‘MacDonald had submitted no concrete' proposals which the Government intended to advocate at the World Conference. The House had been told nothing definite on the war debts question., “We ought not to be 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,” Mr. Lansbury said. ’ He wanted to know exactly what was meant by raising the world wholesale prices. The poor would have to' pay them, thus they would be another form of reducing wages. The world’s troubles were caused by the huge pile of debts. Instead of the Governments facing this they were renewing loans and increasing their difficulties.

Sir Herbert Samuel (Liberal) said Mr. MacDonald was entitled to the country’s thanks for the talks with President Roosevelt. “Economic. and political An-glo-American co-operation ought to be the keystone of our international policy,” Sir Herbert said. “The world depression emanated from America, and when prosperity returns there it will return to the world.” RETICENCE ON WAR DEBTS. The House did not desire to embarrass the Government, Sir Herbert said. The Government had been reticent on the war debts question, but an opinion should now be voiced. The United States should show an accommodating spirit. “We are practically the only country fulfilling the war’s financial obligations.” continued Sir Herbert. The Government would be impotent to lead the World Conference, Sir Herbert said, owing to the contradictions of its own tariff policies. While it was Seeking world tariff reductions it was busy imposing new duties and quotas. Sir Austen Chamberlain (Conservative) said the best news from America for many years was the decision that if a satisfactory armament; convention was reached the United States would participate in consultative pacts for the greater security of 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. HOPE IN RAISING PRICES. Sir Samuel Hoare said the AngloAmerican common aim to raise the price of commodities was the most hopeful feature that had arisen in three years. This was far the more likely to succeed since the United States had gone off gold. Sir Samuel suggested the best way of meeting the British debt to America, even if reduced, would be b; the purchase of silver from the Indian Treasury and its transfer to the United States. This would stimulate trade with India and China by raising the price of silver. Replying, Sir John Simon (Foreign Secretary) said while a tariff truce was necessary for 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 the great objectives of disarmament, increased security, cutting trade barriers and stabilisation of currencies. These were highly valuable results of Mr, MacDonald’s visit. “ " ,