MINISTERS FOR LONDON

Wanganui Chronicle, Volume 76, Issue 108, 10 May 1933, Page 7

MINISTERS FOR LONDON

WORLD ECONOMIC CONFERENCE CABINET SELECTS MESSRS FORBES AND MASTERS VITAL QUESTIONS AFFECTING THE DOMINION WELLINGTON, May 9. The Prime Minister (the Right Hon. G. W. Forbes) announced last evening that, the question of the representation of New Zealand at the World Economic and Monetary Conference to commence in London on June 12 under the auspices of the League of Nations, had been fully considered by Cabinet aud it had been decided that the Prime Minister and the Minister of Industries and Commerce (Hon. R. Masters) should represent, the Dominion. The delegation will also comprise Mr. G. C. Rodda, Assistant Secretary to the Treasury, Professor Tooker, s economist of Canterbiiry University College, and Mr. C. A. Jeffery, private secretary to the Prime Minister. It is necessary that the delegation should leave Wellington by the Rangitata on Friday next.

GREAT OPPORTUNITY

IMPORTANT DISCUSSIONS OVERSEAS INTEREST BURDEN QUOTA AND TRADE RELATIONS “1 desire to say,” stated Mr. Forbes, “that iu determining ou this course tho Government consider that all-im-portant as the Economic Conference must be to the whole world, tho gathering of representative ministers from every part of the British Empire also affords an opportunity for consultation which must not bo neglected, particularly in view of the rapid developments in connection with the trade relations of Great Britain .not only with the countries of the Empire, but its foreign customers, who are competitors of Empire producers in tho British market. There are also other vitally important matters directly affecting New Zealand which need discussion and decision, to which I will later refer. No words of mine are needed to emphasise tho importance of the Economic Conference which meets to discuss frankly, and if possible to solve a most complicated and difficult set of problems, and on the practical and prompt results largely depends whether the world is to drift on into economic chaos and general default or whether, as the happier alternative, it will regain that confidence which will lead to the restoration of prosperity. “Nature has not been unkind. The problem is not one of famine, but of over-supply, and this surely is capable of solution now that all nations recognise the gravity of the situation when, in spite of ail measures so far devised by them, world trade has been so depressed that the countries arc admittedly not far away from general economic collapse, with at least 30,000,000 workers out of employment. Main Questions. “The main questions for consideration at the World Conference may be briefly set out as follows: (a) Financial questions—monetary and credit policy, exchange problems, the level of prices and the movement of capital. (b) Economic, questions—improved conditions of production and trade inter-changes, with particular attention to tariff policy, prohibitions and restrictions of importation and exportation quotas and other barriers to trade. “The monetary objectives will undoubtedly be the restoration of an effective international monetary standard and the general stabilisation of currencies, combined with steps to bring about a higher level of world prices. Such questions as war debts aud other debts, the international use of gold and central banking policies must also come up for consideration. On the economic side efforts will be directed towards lowering tariffs and removing- restrictions and hindrances to greater freedom of international trade. New Zealand’s prosperity depends on the vitality and soundness of overseas markets for its products. It is a debtor country with obligations impossible to meet fully without a piofitable return upon its exports. Quota Restrictions

“Every question on the Conference agenda bears upon our own economic future, but apart from those questions L visualise the valuable opportunity of discussing with the representatives of tho other Dominions of the Empire and with British Ministers many important questions of direct and immediate application to our own difficulties. For example the questions of quota restrictions on food products vitally concern us. Our interests have also to bo watched when, as is becoming quite evident, the whole question of Empire preference will come under review. Another matter in which we have a live interest is that of embargoes imposed by foreign countries on our trade. Au opportunity will be presented for very

useful discussions with representatives of those countries with a view to a widening of the basis of distribution of our surplus produce, and in this connection the presence and co-operation of my colleague, the Minister of Industries and Commence, will be most valuable. “The reactions of the Economic Conference decisions upon methods of monetary stabilisation will, of course, directly affect New Zealand, whneh may be called upon to consider its own plans as a basis for its own monetary sta--1 bility. So far as has laid within its own power, New Zealand has adjusted itself to the drop in national income. Severe retrenchment. interest reduction measures and protection of the mortgagor have assisted to relieve the position and to bridge the gap between costs and prices. Unemployment. “The unemployment problem has been, and still is, a constant and predominant concern of the Government, which can fairly claim that within the limits of financial resourced (in this instance strained to the utmost) they have done their best to relievo temporarily a difficult and distressing situation, but the real and permanent solution of the unemployment problem, which practically every country is at present facing, must depend upon an improvement in world conditions. Earnest hopes are centred universally in the forthcoming World Economic Conference to succeed in bring about a substantial improvement in condition!), which must inevitably reflect itself in easing the unemployment situation in New Zealand and in thus enabling numbers of those who arc now out of work again to be placed in permanent occupation. Overseas Interest. “The recent loan conversion in respect to our internal public debt, indicated the willingness of our own people to meet conditions which imperatively demanded a reduction in the taxpayers’ burden, and by their example they have .created the right atmosphere for making proposals in respect to the larger (portion of our indebtedness, which is . domiciled overseas. This question, involving the rights of investors outside the Dominion, requires careful approach and can, in the last resort, be favourably settled only by direct negotiation with the representatives of the interests concerned. If success in reducing our overseas debt charges is to be achieved, it will only be possible by responsible Ministers presenting the case in London. This question I regard as* one of paramount importance to our own Dominion. Unpalatable as many of our remedial measures have been, though the community as a whole has loyally accepted them, the Government have gone a long way towards meeting the situation within the Dominion, and it is firmly convinced that all the major measures now required to restore economic stability can only be devised at. and following the Economic Conference. In the subsequent adaptation by Parliament of New Zealand’s policy to co-operate, in any general plan for economic rehabilitation, the advantage of personal discussions with the British Ministers cannot be overestimated. Opinions can, in this way, be expressed, and advive tendered in a manner quite impossible by tho exchange of formal communications between the Motherland and the most distant part of the Empire. Acting-Prime Minister “The Rt. Hon. J. G. Coates. Minister of Finance and Customs, will be ActingPrime Minister during the absence of tho delegation. Having regard to the importance of the World Conference and the serious problems to be considered. Cabinet felt that it warranted the attendance of both myself and the Minister of Finance, but having regard to tho difficult position in tho Dominion. Mr Coates felt that he should remain behind. Many matters to be dealt with by tho Conference will be of direct concern to the portfolios which he holds, and we will keep in close consultation with him and with other colleague? at Home in tho matters affecting the Dominion which will bo the subject of consideration bv the Conference.”