WORLD ECONOMICS

Hokitika Guardian, 15 June 1933, Page 5

WORLD ECONOMICS

OPENING SESSION ' . ’ : • W ' AGREEMENT MUST BE REACHED. r : YB: 'dish Official Wireless'.) ; RUGBY, June 13. Several prominent delegates took part' in the 'preliminary general elkmission at - to-day’s session of the U World - Economic Conference. While V different aspects were discussed by) different speakers, there was a general recognition that- an agreement had to be reached and vital decisions tak- • on by the Conference unless the world situation , was to develop into one of extreme difficulty. » • ■ M. Daladier said we believe it to " be the first necessity to put an end to the : war of money and its instability, and give commercial' exchange, an indispensable guarantee of monetary security. Signor Jjing stressed" the .necessity for real stability of values, and said it y- was useless to' create illusive valuer. Stimulus of credit could not be increased merely by increasing supply of credit. ' General Smuts emphasised the need for quick decisions. Count Ishii paid they had ' burned the bridge behind them, ’and failure would mean disaster. Japan desired conditions making possible ’the general restoration of the gold standard. Mr Beck (Poland) Considered that stabilisation of currency should be kept to the forefront. No artificial measure could restore prices fo where tliey were before the crisis. All efforts should be directed towards reconstructing the international relationship’s. Senor Marino (Cuba) said that if the Conference does not succeed in reducing the very high rate of tariffs existing in . the world to-day, it will have failed in the principal task. Herr Neurath emphasised “the desire of his country to collaborate in the .spirit of the King’s opening laddress. He remarked that the interests of creditor and debtor countries seemed to differ and gold standard countries seemed to have other inter- ( eists than the countries which had abandoned the gold standard, or which required exchange regulations for the - protection of currencies. But the Conference in the . overydielining desire .to acknowledge common interests, proved most strikingly that all those differences were only differences in appearance. Industry could not prosper if agriculture did not nourish. The creditor could not exist if the debtor perished, and. vice.,v ; e.rsa.. wGold currency became meaningless if free circulation of. gold was not.guaranteed.-. —.They muatY.-find .'courage, -...t0 carry. "WVhrough the solutions, while remember- . ‘ nig that the success of the Conference was largely dependent on.the fulfLiiient of great political taeks. Count Ishii further advocated im- . mediate temporary measures in con-*Wk-tion with currency and credit, trade barriers and price levels. Japan was ready to consider the obviation of exchange fluctuations, pending a final return to gold. He (advocated unrestricted 'application of the most favoured. nation clause, iHerr Nearath also urged ft clear understanding of Germany’s situation an B • prelude to the selection of proper remedies. Internationa) debts could only be paid in goods and' services, aftdr: Credit land financial problems satisfactorily settled, through peaceful co-operation. Chancellor Hitler's' declaration had paved the way for ®, return df confidence, Germany’s' acceptance of Mr MacDonald's plan as a basis of convention’ gave diffarmanient u new impulse. The spirit inspiring these actions would’ characterise''Germany’s approach to the world’s financial and -economic problems. YThe Conference adjourned... Mr Chamberlain will make' an important statement, putting forward the Brtiish proposals at to-morrow’s sitting. Herr Dolfuss is also expected to epeak before returning 'to Vienna. REAL WORK BEGINS ON FRIDAY

MR HUI'l HEDRAFTING SPEECH ’ LONDON, June 13. Although ; the afternoon session of the Conference was timed to end at six o’clock it lapsed an hour earlier, no speakers being available. A contributory reason was the all-day distraction through the Anglo-American debt- negotiations, which inevitably precipitated themselves into the atmosphere of the Conference from Which Mr .Hull was an absentee. Many delegates preferred .to go to the Commons to bear Mr Chamberlain’s statement. It was not surprised when MrMaqDonaldt .announced that nobody was ready to continue the debate. It'is an open ;secret that .Mr Hull is .re-drafting'his speech in the light of the war debt negotiations, and also the ontsDoken references thereto in „ most of the speeches, iv.v"-------

.. It is fairly certain that specific subiccts will be ref erred to com microns on Friday, when the real work of the Conference'- will begin. General Smuts’ suggestion to leave economies' wholly to- experts is not finding favour with politicians, who assert that they always, in the long run, have to cut the knot to save the experts debating interminably. Count Ishii left iv doubt that lower tariffs are an essential condition of Japan’s willing co-operation, a senti‘jment which disturbed other manufac/juring countriasj