STARTLING TURN

Waikato Times, Volume 114, Issue 18986, 1 July 1933, Page 8

STARTLING TURN

ACTION BY DOMINIONS.

BRITAIN’S POLICY WANTED.

STERLING-FRANC PACT OPPOSED

NO SIGN OF AGREEMENT.

United Press Assn.—Elec. Tel. Copyright. i (Received July 1, i p.m.) LONDON. June 30. The crisis took a further startling turn when the Dominion representatives requested Mr Ramsay MacDonald and Mr Neville Chamberlain to meet them. Only Messrs Bruce (Australia), R. B. Bennett (Canada), General Smuts (South Africa), and G. W. Forbes (New Zealand) attended. This meeting followed a long conversation between Mr Bruce and General Smuts, and then between Mr MacDonald and General Smuts. Tha Dominions are -insisting on an Immediate statement of Britain’s monetary policy. It is understood they wanted two undertakings. Firstly that Britain will not link sterling to the franc, and 'secondly, that Britain will embark on a policy of raising prices by perhaps 30 per cent,' involving open market operations, and possibly the unorthodox policy of not balancing the budget, by embarking on extensive public works programmes. It is believed Mr Macdonald and Mr Chamberlain demurred, but General Smuts emphasised that linking sterling to the franc would be disastrous to -Africa, which depended on upholding the price of gold. Australia’s case, foroefully presented, was that the collapse of world prices in, consequence of sterling and franc understanding would affect Australia’s position as a debtor, especially in respect to Britain. It is understood Mr MacDonald and Mr Chamberlain still oppose raising prices in an unorthodox manner, or by inflation, but General Smuts and Mr Bruce’s apprehensions as to the effect of the linking of the sterling and lranc may possibly cause Britain to forgo suc]i a proposal and refrain from participation in a European currency bloc, simultaneously refusing to follow the dollar. . British authorities think that America’s wave of inflation is subject to a sudden turn of the tide, and believe Mr Roosevelt may shortly find it necessary to take the dollar in hand and negotiate stabilisation with Britain. I in the meantime Mr MacDonald sits on the fence, white the Conference approaches Its doom. Signs of a substantial agreement •re most remote. GOLD COUNTRIES’ PLEA. REPRESENTATIONS to president United Press Assn. —-Elec. Tel. Copyright. (Received July 1, i-45 p.m.) LONDON, June 30. The gold countries’ resolution which was approved by the British and American delegations has been transmitted to President Roosevelt./-It. ad-vocates-their maintenance of the gold standard at any cost and also the return of the other countries thereto. It adds that the stabilisation ratio and the moment of stabilising must be the independent concern of eacli country and countries with devalorised currencies approve , hereof The Conference at Downing Street has adjourned and M. Bonnet has departed for Paris. PARIAH AMONG NATIONS. AMERICA’S ISOLATION. WIDESPREAD CONDEMNATION. United Press Assn.—Elec. Tel. copyright. (Received July 1, 1.45 p.m.) LONDON, June 30. A North American News Association message states that Mr Hoyden, the well-known journalist writes: — “ Putting it mildly - , America is a pariah among the nations, 05 of which have been encouraged to believe she would stimulate recovery, whereas her delegates have blocked all progress while France, hitherto self-centredly nationalistic, leads the cry for international co-operation. The French delegates’ indignation at private conference is boundless. “ Europe is unable to understand America’s unwillingness to check the fluctuations of the dollar or Her hope that she as the largest creditor in the world can sever international ties and still hope to collect, her debts.”