UNITY OF IMPERIAL AIMS

Hawera Star, Volume LIII, 13 June 1933, Page 5

UNITY OF IMPERIAL AIMS

EMPIRE DELEGATES MEET

DISCUSSION WITH CABINET.

NEW ZEALAND REPRESENTED.

LONDON, June 12. Empire delegates, including Mr S. M. Bruce, Sir Thomas Wilford, Mr R. B. Bennett and General Smuts, met fco-day at 10 Downing Street under the presidency of Mr Ramsay MacDonald. They discussed conference subjects with Cabinet members with the object of finding the extent of unity in Imperial aims to enable a clear understanding when voting at the conference is reached. Several further meetings will be held during the conference.

WORK ON DRAFT AGENDA.

PREPARATION BY COMMISSION

SUBJECTS FOR DISCUSSION

The draft agenda for the Economic Conference was compiled by a preparatory’ commission of experts of the League of Nations last January and communicated to members of the League. In its work the commission was guided by the terms of reference transmitted to it by the League Council and by preliminary discussions recorded in the Pinal Act of the Lausanne Conference. This conference had invited the League to convoke a world conference “to decide upon tire measures to solve the- other economic and financial difficulties which are responsible for, and may .prolong, the present world-crisis.” The agenda as formulated bv the commission embraces discussions under the following heads: Monetary and credit policy; prices; resumption of the movement of capital; restrictions on international trade; tariff and treaty policy; organisation of production and trade. The problem of inter-Govern-mental indebtedness has not been included, although the commission expresses the opinion that it is essential this question should be settled. In outlining the general programme of the conference the commission states that the principal questions to be considered must be the restoration of an effective international monetary standard to which countries that have abandoned the gold standard can wisely adhere; the high desirability of some increa.se in the level of world prices, one remedial method needing consideration being the development of a. general policv of easy money; the abolition of exchange restrictions, which is an essential condition of world recovery; and the greater freedom of international trade.

FUTURE GOLD STANDARD

“There should be a general understanding about measures to ensure a better working of the gold standard in the future,” states the commission in its annotations to the agenda. Steps must be taken to restoie internal equilibrium and at all costs inflationary increases of note circulation to meet Government defiicits must be avoided. In countries which have left the gold standard efforts .should he made to avoid competition between States to acquire temporary advantage in international trade by depreciating the external value of their currency below such a point as is required to reestablish internal equilibrium. It is suggested that the conference should emphasise the importance of the monetary organisation being so arranged as to make central banks independent of political influence, and that it should emphasise the need of introducing greater elasticity in the nrimnry over regulations of central banks, particularly so as to make the reserve more full available to meet fluctuations in the balance of payments. . After reviewing the disequilibrium

between prices and costs the commission states that a policy aiming at the restoration of currencies on a healthy basis, financial reconstruction, greater freedom in the movement of goods and some immediate measures to give evidence of its practical application, would be decisive step toward a revival of confidence bringing about an increase in effective demand. A recovery of sound international lending would have a helpful effect on prices.

EXCHANGE AND DEBT BURDEN

Apart from the instability of exchanges, some of the major obstacles to capital movements are the control of foreign exchanges and, in certain cases, the burden of debts. It is essential that these obstacles be cleared away. The resumption of capital movements throughout the world should be effected through the normal credit channels. Restrictions on international trade, whether prohibitions, quotas or licenses, have become exceptionally widespread, and constitute an almost insurmountable barrier to international trade with complete paralysis. The abolition of these measures constitutes the most urgent problem from the point of view of bringing world eeonmy back to a more normal condition. One object of the conference, states the commission, must be to reach a general agreement for the reduction oi tariffs and to maintain a more moderate tariff policy in the future. It suggests a customs truce as a preliminary measure. There is profound disorganisation of production and distribution it states, and in this connection joint action bv Governments is necessary for the recovery of an economic system threatened by bankruptcy.

STABILISATION OF CURRENCY.

PROGRESS OF LONDON TALKS

AGREEMENT THOUGHT LTKELY

LONDON, June 12. Considerable headway has been made in the talks between, bankers and the Treasury, says the political correspondent of the “Daily Mail.” An early announcement will be made in regard to temporary stabilisation of currencies. M. Moren pressed for Britain to return to gold, but the Government insisted that that must be preceded by a settlement of war debts, redistribution of gold and abolition of exchange restrictions; nevertheless Britain was ready to accept temporary stabilisation to avert failure of currency stabilisation. ‘

The bankers discussed the possibility of constituting a joint French-Anglo-American equalisation fund; otherwise France and America separately would establish funds on the British model. It should he then relatively easy to stabilise currency. A gentlemen’s agreement is considered most likely.

BROADCAST OF SPEECH

RECEPTION CONDITIONS BAD

Owing to adverse atmospheric con editions, the broadcast at 1.27 this morning of the King’s speech at the opening of the World. Economic Conference in London, was not .successful! v received in New Zealand, only occasional words being distinguishable. On account of the inconvenience of the time no attempt was made to- relay the address in New Zealand. As the King spoke, his remarks were recorded bv the Blattnerphone process, and his recording will be transmitted on short-wave some hours later by the British Broadcasting Corporation. The New Zealand Broadcasting Board bps arranged to receive this transmission, and his Majesty’s voile should be heard From YA stations at about 0.10 p.m. this evening. A message received from Sydney this morning states that the broadcast of the King’s speech 'shortly after midnight was unfavourable to reception in Australia.