IN JEOPARDY

Wanganui Chronicle, Volume 80, Issue 132, 5 June 1937, Page 9

IN JEOPARDY

PROPOSED TRADE PACT EMPIRE AND AMERICA a., LEAKAGE OF DETAILS (By Telegraph—Press Association—Copyright) LONDON, June 3. The Anglo-American* trade pact, which promised ultimately to emerge as one of the most important sequeL to the Imperial Conference, appears to-night to be in jeopardy. This is ent.iely due to premature public discussion arising from official reluctance to reveal the nature and progress ol the deliberations. Many details that leaked out have proved accurate, leading to the belief that an Anglo-American pact was imminent and involving a modification of the Ottawa Agreement, whereas, although this might be intended uliiffiately, there has not been any question of attempting to reach an agreement before the conclusion of the Conference. Even if the Conference reached an agreement in principle, it would be necessary for the British Dominions to discuss the matter in their respective Parliaments. Conservatives Uneasy Disquiet among Conservatives lest the proposed Anglo-American trade pact should involve sacrifices from the Dominions, thus impairing the whole basis of the Ottawa Agreement, resulted in the Empire Industries Association, comprising 300 members of Parliament, summoning an emergency meeting. The Manchester Guardian says the Importance of the Anglo-American trade pact project is its acceptance as a test case with the professed desire of enlisting Imperial economic policy in the cause of freer world trade. The political and national interests of the Australian and New Zealand Governments hinder the conclusion of an Anglo-American pact. Moreover, Mr. J. A. Lyons is to face an election shortly, and is the more reluctant to sacrifice tangible privileges for the sake of a general principle.* His position would be much stronger if he could bring back in exchange an advantageous settlement of the trade dispute between Australia and America. WORLD CONFERENCE AIR SAVAGE’S SOUNDING LITTLE SUPPORT FOUND LONDON, June 3. It is understood that the Rt. Hon. M. J. Savage, who favours an international conference to consider economic trade, has taken soundings at the Imperial Conference, but his proposal is apparently greeted with little favour, most of the delegates believing that the world is not yet ready for an agreement. UNBALANCED TRADE AUSTRALIA AND CANADA MANUFACTURER WARNED TORONTO, June 3. Mr. L. R. MacGregor, Australian Trade Commissioner to Canada, has issued a warning to Canadian manufacturers stating that the convention with Australia cannot continue, with agreements resulting four to one in Canada’s favour. The Australian markets are a substantial aid to the Ca; sdian major industries. He urged the association carefully to scruttiise th? situation. EQUALISATION FUND BIG PURCHASE OF GOLD LONDON, June 3. The largest amount of gold ever offered in a single day was bought by the equalisation fund for £2,565,000- ' It is believed that a large part eman- | ated from foreign hoarders, who were | alarmed at the continued rumours I that the gold price would decline. GOLD STANDARD BRITAIN'S POLICY UNCHANGED . 1 British Offic'al Wireless. ] RUGBY, June 3. In the House of Commons the Chancellor of the Exchequer was asked to give the same assurance as was given by his predecessor that the country

would not return to the gold standard system until he was satisfied that the causes which had brought about the downfall of the gold standard in 1931 was removed and not likely to recur. Sir John Simon replied that the conditions necessary before a return to the gold standard would be possible had been clearly indicated in previous 1 declarations, which continued to represent the policy of the Government on that subject.