WORLD PROBLEMS

Wanganui Chronicle, Volume 76, Issue 109, 11 May 1933, Page 7

WORLD PROBLEMS

MR MACDONALD S WORK THE WASHINGTON MISSION AVENUES TO AGREEMENT STATEMENT IN PARLIAMENT ( British Official Wirelass. 1 Received Mav 10. 5.5 p.m. BUGBY, Mar 9. curing the course of a statement to the House of Commons on his recent conversations with President Booseveil, Mr. Ramsay MacDonald announced that information had just reached him which enabled him to state that there was every prospect ot reaching an agreement with the United States as to the advisability of an immediate tariff The Prime Minister remarked that he could not say much more than he had said last Thursday. Anyone familiar with the issues involved must have realised that the state of the negotiations and the positions of the verv delicate matters which had to be faced without delay and with a determination to reach a definite agreement, could not b? improved by a full statement on what was going on in a tentative and purely non-committal wav. Four days in Washington were all’too brief fo’r agreements, but were long enough to enable President Roosevelt and himself to exchange information and survey the ground which their respective Governments had to cross before staisfactorv issues were reached. There were three big sections they had te examine, namely, the debts, the business that would come before the Economic Conference, and. thirdly, the section on which a fairly prolonged conversation was essential so that he might inform the President of how the British Go~- regarded the European situation, the prospects of peace, and the pacifying of disturbing ele ments so that co-operation between the two Governments at Geneva should be, without coming any any alliance and without coming to any solid and sound agreement, as complete as human beings with goodwill could make it. Final Debt Settlement There was complete unanimity of opinion, said the Prime Minister, that the International Economic Conference could not be fully successful unless the debt difficulty had been removed. “The settlement I am thinking of -a final settlement—is going to take a little time. I do not mean by ".hat a longish time, but I mean it litcrallv. It is going to take just a little time. There are so many issue? involved and so many awkward items tobe dealt with in complete and final settlement.” The Prime Minister said that it was never contemplated that war debts should come before the Economic Conference. The debt negotiations would have to go on concurrently and on parallel lines. A permanent settlement was the thing they had to aim at June 15 was to 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 so as to make the hurdle Impossible to clear. Immediate Tariff Truce Cor tinning, the Prime Minister said that since he entered the House, information had reached him that there had been further exchanges of views with the United States Government, and he was now able to say that, subject to the settlement of the actual words, find while protecting the essential position of both Governments, there was every possibility of reach ing an agreement as to the advisability of an immediate tariff truce. By this was meant the avoidance of any increase in the great variety of diffi eu’ties now impeding international ccirraerce. The Prime Minister also referred to the importance which both the Ameri can and British* Governments attached to raising wholesale prices, and to the task before the Economic Con ference of reaching an agreement on the international relationship of the currencies of the great trading countries. America and Europe Security, said Mr. MacDonald, was also very fully considered and both had dearly in front of them the menace to the tranquility of mind of Europe which recent events had ere ated and the new risks with which the Disarmament Conference was being faced. I am very happy to say, he added, that the United States Government is prepared to play a further part in tranquilising Europe by agreeing, if the Disarmament Conference should come to anything like a satisfactory issue, to take its pari in consultative pacts, the effect of which will be to increase the secur ity of*Europe and the safety of the nalions against war. This is a very considerable advance. Mr. Stimson began it in that very courageous statement he made before he went out of office regarding the need to redefine neutrality, and the present Government has expressed its inter) tiot: of going further and making those obligations definite and author itative. An announcement will bo made at Washington in due tim p . when the matter is further consid cred and its details worked out. Clear Understanding The United States and ourselves, concluded the Prime Minister, now clearly understand each other, and would do everything they could to make the International Conference a success, and thereafter to continue to help the removal of fear from the pacifist nations of the earth. Sir Samuel Hoare said that the Anglo-American Common aim to raise price commodities was the most hopeful feature which had arisen for three year. This was far more likely to su« K eeed since the United States had gone off gold. He suggested that the best way of meeting our debt to America, even if reduced, would be by 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. filir John Simon, replying, said that

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. BURDEN OF DEBTS LEADERS DOING NOTHING. LABOUR LEADER’S VIEWS. LONDON, May 9. In the House of Commons, Mr. Lansbury (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 nouthed on the subject, seeing that we have cancelled one thousand millions of Italv’s and France’s debts to us. and

or Italy's ana franco's aeots to us, ana we allowed many more millions to go by default.” Mrs. Lansbury wanted to know exactly what was meant by raising the world wholesale prices. poor would have to pay them; thus they wore another form of reducing wages. The world’s troubles had bo° n caused by the huge pile of debts. Instead of the Government facing this, they were renewing loan* and incensing the difficulties. Defence of Government. Sir H. Samuel said that Mr. MacDonald was entitled to the country’s thanks, lor his talks with Mr. Roosevelt, for economic and political Anglo-American co-operation ought to be the keystone of our international policy. The world depression had emanated from America. When prosperity returned there it would return to the world. The House did not desire to embarrass the Government. They had been reticent on the war debts question, but the opinion should not be voiced that the United States should show an accommodating spirit. Sir H. Samuel continued: “Wo are practically the only country fulfilling the war’s financial obligations. The Government would be impotent to lead the World Conference owing to the con predictions of our own tariff policies.” While seeking world tariff reductions they were busy imposing new duties and quotas. Sir Austen Chamberlain said that the best news from America for manv years- - the decision that if a satisfactory disarmament convention was reached the United States would participate in consultative pacts for the greater security of the nations. For this alone, which would deeply afh ct the peace, of the world, Mr. MacDonald’s trip had rendered a great national and interna :ional service.