ECONOMIC CONFERENCE

Hokitika Guardian, 11 March 1920, Page 3

ECONOMIC CONFERENCE

(Imperial News Service.) (By Electric Telegraph—Copyright)

SUPREME COUNCIL ACTION. {Received this day at 11.25 a.ro.) LONDON, March 9. The declaration on economic condi-

tions of the world, approved by the Su-

preme Council yesterday, states the after carefully surveying’ all aspects of the vitally urgent problem agreed upon the following recommendations, with a view to the amelioration of the present economical difficultes in Europe:— Firstly,—lt is of paramount importance that peace conditions should be

completely restored at the earliest possble date throughout ■ the world. In order to achieve this object it is desirable: (a), That peace and normal economic relatipns should be re-established as soon as possible throughout Eastern Europe; (b) that the armies should everywhere be reduced to a peace footing; that armaments should be limited to the lowest possible figure compatible with national security, and that the League of Nations should be invited to consider, as soon as possible, proposals to this end; (c) that the States created or enlarged as a result of the war, should immediately be re-established to full friendly co-operation and arrange for unrestricted interchange of commodities in order that essential unity of European economic life ma'y not be impaired by the erection artificial economic barriers.

Secondly,—Not only tfie Government of each country* hut ajl producers should immocltatrefr attend! to the execution of all measures contributing to a full resumption of peaceful industry, the encouragement of a better output by workers, improvement of machinery and means of transportation and removal of disturbing features such as profiteering. Thirdly,—Each Government should immediately consider means of urging upon all, as a national and vital necessity the suppression of extravagance and reduction of expenditure in order to bridge the gap which must exist for some years between the demand and supply of essential commodities.

LONDON, March 9. The Economic Conference declaration continued:—Fourthly, it is essential to take early steps to secure the deflation of 7 credit and currency, (a) —By reduction of recurrent Government expenditure within the limits of revenue, (b) — By imposition of additional taxation necessary thereto. (c) —By immediate limitation and gradual curtailment of vote circulation. Fifthly, provision of raw material being essentia] to restoration of industry. Means should he found by which countries at present unable to purchase in the world markets can obtain commercial credits. It should be possible to achieve this when the countries made reforms previously indicated. Sixthly’, the conference recognised the necessity for the continued operation of the Allies and removal of obstacles to the easy interchange of essential commodities. The Allies will continue to consult'together in regard to provision and distribution of the necessary raw “materials and food stuffs in view of the early restoration of normal conditions.

Seventhly, the'Conference g«ve careful attention to the case of the devastated regions, especially North France. The restoration of these regions is of primary- importance to the re-establish-ment of ecnomic ecjUilibrium of Europe and resumption of normal trade conditions. Evidently large sums are required in this connection which cannot be provided out of current revenue, nor can the work of restoration he postponed until repatriation from Germany is received; therefore the conference iecognised that capital sums required for this restoration may be properly raised by market loans in anticipation of the reparation- payments provided in the Peace Treaty and restrictions which they desire to be placed on new borrowing do not apply to loans or credit to meet this normal capital expenditure. Eighthly, the conference agreed it is desirable in the interests of . both Germany and her creditors that the total reparation payable by her should be fixed soon, and agreed to the extension of the period of four months from the signature of the Treaty in which Germany is entitled to make proposals in this connecton. The question of allowing Germany to raise a foreign loan is to be referred to the Reparation Commission.