BRITISH POLITICS

Rotorua Morning Post, Volume 1, Issue 72, 16 November 1931, Page 5

BRITISH POLITICS

(British Officiai Wireless)

labour defeated baldwin makes momentous reply on behalf of Government INTERNATIONAL CO-OPERATION

RUGBY, Saturday. The debate in the House of Commons on the Address-in-Reply was continued to-day, whei% after a reply for the Government by Mr. Stanley Baldwin, a Labour amendment was defeated by 422 votes to 38. Mr. Baldwin accUsed the Opposition "of disregaf ding, the national erisis which the National Government was formed to ineet, and said the immediate task was to safeguard the balan'ced Badget and confirm the faith of the world that they would not rest until they had restored the balance of trade and established _ the currency in safety and seeurity. There was undoubtedly great scope for international co-operation on the currency question; said Mr. Baldwin and, the Government- would willingly lend its aid. As regards. the pound, the Governmeht'S intehtioii w'as to stabilise it on a definite basis When the necessary conditions were fulfille'd, bait thd's'e coh'ditibns iniist first be attained so that it would be sure that , the pound could maintain the position at which it was stabilised. "VVar Debts and Reparations War debts and reparations were a most diflficult problem, said Mr. Baldwin. It - was obvious that the whole world's existing arrangements had broken down. Thanks to Mr. Hoover the world had had a breathing space, but he doubted if it was sufiicient. The Governments represented at the London Conference last'July resolved, in order to assure the financial stability of Germany, which was essential in the interests of the whole world, to co-operate as far as possible to restore- confidence. Since then the situation had gone from bad to worse, largely beeause no action followed on that recommendation. The only action that could be taken was by the Governmjents. Was this, asked Mr. Baldwin, the moment for the initiative to come from Britain? Some kind of agreement between France and Germany was one of the most important preliminaries. The Government very much hoped that the French and German discussions would lead to. an agreement, and believed that there1 was a good chance of it. They desired that the necessary negotiations be proceeded with without loss of t;me. No agreement could be arrived at without the consent of Britain, and when the time came to express their views they would be ready to do so. By preparing propqsals with care and convincing the other nations that they would be to their interest as well as to our own, they could make a most useful contribution. Financing Germany He pointed out that London had been largely instrumental in financing Germany during the past ten years, thereby enabling her to carry on her international trade and pay her reparations. The advances made by the British financial houses had not been of a speculative charaeter. They were founded on the best type of seeurity known to the market. It was clear, said Mr. Baldwin, that the seeurity of these obligations must not be endangered by political debts. If that was to take place it would destroy Germany's commercial credit, and once that was destroyed there would be no prospect at all for reparations. He trusted, therefore, that an agreement on this point would b'e reached, but the question involved political prejudices and preoceupations in other great countries. He asked the House to trust the Government to choose the moment when Britain! could intervene and negotiate with the greatest effect.