BRETTON WOODS BILL LIKELY TO PASS HOUSE OF LORDS

Wanganui Chronicle, Volume 89, Issue 299, 19 December 1945, Page 5

BRETTON WOODS BILL LIKELY TO PASS HOUSE OF LORDS

DEBATE IN ITS SECOND DAY ECONOMIC DISASTER FORECAST IF LOAN NOT RATIFIED

Recd. 9 p.m. London, Dec. 18. Debate on the Britton Woods Bill and the Anglo-American loan agreement enters its second day in the House of Lords to-day, and will be wound up. Political observers now forecast that there will be a small anti-Government vote against the measures. Opposition to the loan in the House of Lords will be more voeal than voting, says the Press Association’s political correspondent. Political circles are now reconciled to the prospect of a small anti-Government vote. Lord Keynes, who led the British delegation which negotiated the loan in, Washington, will be the first speaker for the Government when the debate is resumed. Lord Beaverbrook, on behalf of the Conservatives, was to have moved an amendment to the motion to pass the Bill, but does not now intend to do so. He does not wish to imply that opposition to the loan is less keen, but withdrawal of his amendment will enable a straight-out vote to be taken for or against the agreement.

Lora xseaverorook will speak and vote against the Government. Some of his supporters are expected to follow him into the lobby, but they are not expected to be numerous. Most of the Opposition peers are expected to go no further than abstention.

Opening the debate. Lord Pethick Laurence said Britain had to make cense, sions which she would prefer not to make. The United States regarded the settlement as extremely generous and that she had made important concessions. NO RETURN TO GOLD

“If the agreement meant a return to the gold standard I should no. inhere,” he said. “The agreement relates sterling to gold, but there is a degiee of flexibiliy. We have the absolute right at any time >o change our parity up or down. We are confronted with two alternatives: First, to come to an agreement with the United States to build up a new world order in finance and trade. The scheme admittedly is experimental, but with patience and unders. an cling there is a real chance that is can be made to work. Where it falls short it can be amended. The second alternative is to fight a financial and economic ba.tie with the United States. I beg you to weigh the consequences. Rejection would mean a quarrel with the United States and the end of alj co-operation. We should be putting ourselves in an impossible position of isolation. We dare not fail future generations by embarking on such a ruinous course.”

“I do not suppose any important international agreement has met with such widespread mistrust,” said Viscount Simon. “There can be no harm in saying to America that a likeness of effort in war Ln’t the same as equal sacrifice. It is no disservice to Anglo-American friendship to explain wny we regard this agreement as a disappointing adjustment and a hard bargain. Our negotiators sough, an agreement which could have given fuller effect to the surprising contrast between our situation at the end of the war and that of America. This is very different from the sort of agreement the negotiators tried to .get. Nevertheless, I agree that this House should abstain from rejecting the agreement and bringing about the consequences it would ensure.” TARIFF POSITION

Viscount Simon expressed the concern lest America should maintain discriminatory tariffs, while exporting in free competition with the Commonwealth.

Cheers greeted Lord Keynes and Lord Addison’s as urances that elimination of preferences throughout Britain required a substantial reduction of tariffs elsewhere. Viscount Samuel offered Liberal support for the Government and criticised the Conservative’s abs.entir.ii. “If the Americans attach to the loan, what appear to us to be mistrustful conditions, let us reali e from the view of the American taxpayer that they wish to be assured that the loan will not be u ed directly or indirectly to subsidise British export trade in competition with America,” he said Viscount Samuel added that because America realised an economic col lap .e of Britain would mean disaster to the United States, they had been ready to give assistance. Neither the sterling nor the uoliar could fully prosper it isolated. The right policy for international co-operation seemed to be embodied in the agreements under con iaeration.

"I feel tliis really is an hour disillusion,” said Lord Woolton. *‘l am fearful of the name of my country being placed to a bond which we may be unable to honour. I ask the American people whether in justice and honour they ought not return to us those securities we were compelled to deposit with them in 1940. I don’t ask tor a loan nor for a gift; I ask for rightful restitution of what we paid in advance for what became a common cause.”

He believed there was no need for “a cringing policy of appeasement” to America.

Lord Croft described the proposals as a Boston tea par.y in rever. e. It was interference with the freedom cf Britain to manage her own affairs. Lord Strabolgi accused the Conservatives of being eager to wound, but afraid to strike. They want an opportunity later, when things were difficult economically, of saying they

were not respon-ible. He asked the Peers to imagine the effect rejection of the would have on the present Moscow conference. Lord Pakenham said he believed in the ideal behind the document. Trade barriers on the scale now confronting the world were thoroughly evil things, and this was a unique chance to get rid of them. Lord Altrincham said the British case had not been properly put to the American people, and "the Government could not be absolved from responsibility. Mr. Attlee went to Washington while the negotiations were going on and addressed Congre s. but did not refer to the loan. He hart confined himself to explaining and defending not the national but the Socialist Patty case. Lord Teynham asked if any approach had been made to the Empire for financial assistance. I might have been possible to devi e means whereby Empire raw materials might be traded against a commercial loan. Th" House adjourned until to-day.