WELLINGTON NEWS

Hokitika Guardian, 27 November 1931, Page 7

WELLINGTON NEWS

DISTURBING FACTORS.

(Special Correspondent). ' WELLINGTON, November 25. A few weeks ago there were bright prospects that the worst of the depression had passed. International politics gave promise of co-operation on the part oi the principal nations. The principal statesmen of Germany, France and the (United .States visited London and had close conversations with British statesmen. A similar interchange of visits has taken place between France and Germany. More recently the French Prime Minister visited Washington, when it was said there wa.s frank discussion, and, a week or two ago the Italian Foreign Minister, Senor Grandi, was in Washington and discussed armaments and war debts with President Hoover. Thus all the principal nations have come into direct political contact, and as all the nations are .suffering more or less from the depression it is but natural to suppose that the negotiating statesmen 'weije inclined to give and take, so as to put an end to the intolerable economic situation. But such apparently is not the case.

Reparations, war debts and armaments are closely adied. Britain is ready to acquiese in all three, and has said so repeatedly with respect to reparations and war debts, and has given proof in respect to armaments by reducing her army and calling a halt in War ship building. Germany is mainly, if not solely, interested in reparations, The bald fact is that Germany is unable to pay reparations and hag requested the convocation of the Special Advisory Committee of the Bank of International Settlements to examine into Germany's capacity to pay reparation.

The Hoover moratorium terminates on June 15 next year, when payments begin, and the deferred interest must be paid over a period of ten years. The Premier of France, M. Laval, declare 1 in 'the Chamber of Deputies last week that he would not hear of revision of the Young Plan and the Chequers Conference, and he would not now. Thus it would appear that the reparations’ door is closed with a bang and war debt burdens and reparations must continue.

Fiance seems to be a menace to the peace and prosperity of the world. She seems determined to keep Germany in subjugation and humiliate her to the utmost. Even in respect to armaments France shows a greater obstinacy. The battleships’ holiday expires this year and already it is announced that France is planning to build a 30,000 ton battleship to cost £6,000,000. On the purely economic side there has developed a tariff war which must have far-reaching effects. The tariff war was started by the Gni'ted States when that country imposed prohibitive duties, which shut out Canada. The latter imposed duties that shut out butter, and the tariff problem with its concomitant dumping has drawn Britain into the fray. The Abnormal Importations * Act now in operation has been designed to prevent the dumping of goods on British markets, but fortunately the Dominions are exempted from the operations of the Act,

But who can tell what the new venture in tariff construction will have. It is a trade war and it is the duty of the Dominions to stand by the Mother Country in this tariff war. It is not sufficient that we should supply Britain with increasing quantities of our products, but must also refrain to the very utmost from purchasing foreign goods that can be procured in Britain. In the meantime the economic situation is again disturbed and commodity prices are falling. New Zealand salted butter is at 112 s per cwt. or 6s below the pre-war price,