THE MICHIGAN DAILY
ormer Belgian Premier To Lecture Here, On Tuesday
Night
I
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Word
At
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chaos in
t Zeeland's Report Offers Van Zeeland's
Escape From Economic Chaos Visit To U. S.
Pact Would Strike necessity arouse strong opposition. Is His Fourth
Obstacles Checking He favors the eventual restoration of I
Flow Of Trade the gold standard, although in a Came Here As Member
Mowf_ Tade modied form. And, to fa'ilitate the Of Relief Commission
HERVIE HAUFLER i abandonment of foreign exchange O
controls, he proposes further read- Studied At Princeton
out of the depression-caused: iusttn.'nts of foreign rdebts andt-1he
i
TX orld ' rude BReport Non-Technical
Economic Study,_Says Van Zeeland
a international trade is of-
Van Zeeland
cduu vaaa+ aa irk v.a 1.t7a Gl, i1 UGF;I Vii CG11U 411G
fered by Dr. Paul Van Zeeland in his
reportbto Franceand Great Britain.
Drafted from the findings of the
League of Nations and the Interna-'
tionaal Chamber of Commerce, from
the opinions of leading authorities in
Europe and America and from his
own experiences as a statesman, the
provisions of Dr. Van Zeeland's re-
port strike at two major types of trade
obstacles, economic and financial.
The economic hindrances have
taken the form of higher tariffs,
quotas and protection through ad-
rninistrative devices. Quotas restrict
the amount of any product that may
be imported. Administrative "protec-
tionism" has in many instances
proved more restrictive of interna-1
tional trade than direct tariff in-
creases. For instance, sanitary regu-
lations have in some countries be-
come so complex, and so rigorous in
enforcement, that food imports are
virtually excluded.
The financial obstacles to com-
merce are perhaps even more serious
than the economic hindrances, Dr.,
Van Zeeland believes. Rapid fluctua-
tions in exchange rates have madea
commerce financially hazardous. The
attempts of countries to avoid cur-a
rency and balance of payment dif-
ficulties through exchange controls
and clearing systems have demoral-
ized world trade.
In Dr. Van Zeeland's opinion, 'these
obstacles are interrelated, and can
be dealt with adequately only through
a general economic pact. His report,
however, provides measures for meet-
ing each obstacle. For instance, he
would foster bi-lateral agreements
patterned] after the Tripartite Decla-E
ration of the United States, GreatI
Britain and France.
Some of his proposals must of
gran
the
to c
have
this
ing
iting of temporary loans through Paul Van Zeeland's current trans-
Bank of International Settlements continental speaking tour marks his
countries which would otherwisef .t .
e to retain these restrictions. As fourth visit to this country.
would probably mean the mak- IThe former Belgian Premier first
of loans to Germany and Italy,! came to the United States as a mem-
the fear of democratic countries that' ber of the Belgium Relief Commission:
such financial aid would be used to in 1920, and spent a year here study-
further reartnament programs wouldi
prove a strong deterrent. ing economics on a graduate schol-
To promote the freer development arship at Princeton University underI
of international trade, Dr. Van Zee- Prof. Edwin Walter Kemmerer. famed
land offers a Pact of Economic Col- "currency doctor."
laboration embracing the largest pos- Returns To U. S. A.
sible number of states. His report After a decade spent in doctoring
emphasizes, however, that every na-
tion must agree to the principles of Europe's financial ailments, Dr. Van
the pact before formally ratifying it. Zeeland returned to this country to
He suggests the establishment of a study the progress of the New Deal
bureau to answer the grievances each and report upon the first phase of the
nation might have. Only when the Roosevelt experiment, as he had prey-
differences had been completely lously analyzed the five-year plan in
ironed out would there be a formal Russia.
signing of the pact. In 1937, while he was still the head
Dr. Van Zeeland fully recognizes of the Belgian government, he made
the difficulties confronting him, his third journey across 'the Atlantic
especially those arising out of world to lay the results of his survey of
political unsettlement and the au- world economic and political affairs
tarchic policies of the totalitarian before President Roosevelt, Secretary
states. He believes, however, that of State Hull, Secretary of the Treas-
these measures of "self containment" ury Morgenthauw and other high gov-
'which many countries have adopted ernment officials. From this survey
are expressions of their fear of in- came his World Trade Report pub-
stability. With the establishment of lished this January.
political security, the world may yet Van Zeeland 'Won't Talk'
come to accept his proposals. It was on this last visit that Dr.
Van Zeeland gave his famous model
for evasive, noncommital answers to
Danish Librariani To Speak the press, when he said: "No one is
entitled ' to say anything. Nobody
Dr. Thomas M. Doesing, former as.( knows anything, and I have.told no-
sistant in the Royal Library at Cop- body anything. I will speak :about
enhagen, will speak on "The Folkthem later on, when I see if I can."
High Schools in Denmark," before This present trip has been made in
students of library science and mem- response to requests 'from universi-
bers of the library staff at 4:15 p.m. ties and economic bodies in this coun-
Thursday in the Natural Science Au- try for more light upon the issues
ditorium. raised in his World Trade Report.
The World Trade Report, prepared
by Dr. Paul Van Zeeland, is the pro-
duct of eighteen months of intense
research and consultations with the
foremost business men, financiers and
statesmen in all the important coun-
tries.
Explaining to the press in New
York the procedure he followed in his
investigations and the nature of his
recommendations, Dr. Van Zeeland
said: "Two courses were open to me.
One was to take an attitude of nar-
row technicality. I could compile what
I heard in a long and detailed docu-
ment, add one more volume to the
1 burdened shelves of official archives
and expose myself to nothing. Or I
could prepare a compact and non-
technical summary embodying speci-
fic and constructive suggestions and
expressing personal judgment and
opinion."
"I decided on the latter course as
more likely to lead somewhere. I have
taken my responsibility . . . Now it
eremains for others to take theirs."
"If we wish to cure the economic
disequilibrium in which we live and
of which we may die if it is pro-
longed," Dr. Van Zeeland went on to
say, "this diagnosis had to be made.
My commission was to consult local
doctors in order to prepare material
for a general consultation. My own
suggestions are advanced as a basis
for this consultation because although
I have heard objections at every point
no other general program has been
offered."
"If ideas and methods more likely
to be agreed upon come out of the
discussion, I will gladly scrap 'mine
and supportothers. All I hope for is
that the report will be studied as a
whole, as a general program carrying i
checks and compensations in every
direction. No nation could be asked
to accept one part without agreeing
to the others."
Dr. Van' Zeeland was asked how'
many ideas in his report were gained
n his visit to Washington in the sum- .
mer of '1937., "It would be unfair. to
say, or for any country to expect that
its particular views are expressed,"
he replied. "I have had to find a, true
point of equilibrium between diver-
gent and different tendencies in or-
der to make collaboration possible."
'But I may say that the people of
the United States will find here many
ideas, methods and ideals which are
familiar to them and which have
been developed and defended by their
leaders. The results achieved by bi-
lateral trade accords, for example.
Enlarged by the proposed Anglo-
American agreement, they could form
the framework of a new commercial
structure.",
"I am in complete sympathy with
the policy and aims of Secretary Hull.
I subscribe whole- heartedly to the
eight points expressed at the opening
of the Buenos Aires conference. A
report of- this kind must be based. on
the principle that economic collab-
oration would between nations de-'
pends on the observance bf interna-
tional law anid respect ior engage-
ments ,taken.'
Reporter,; asked, himf what reason
there was to believe' that a pact of
economic collaboration would be bet-
ter observed than other internation-
al treaties.
"One reason for hope," the former
Premier said, "is that an agreement
could not be reached without both a
will to co-operate and a lively self-
interest in the results of cooperation."
"Another is that accords are defin-
ite and precise. They are reciprocal
by nature and carry their own guar-
antees of obser ance. How often do
nations dishonor their commercial
treaties ,and who suffers most if they
do?"
"During a certain period there was
a vogue for pacts. Every country
signed on the dotted line, sometimes
because it would have been difficult,
to refuse. Now. fashion runs in the
opposite direction. Nobody wants to
sign anything, so if the great nations
adhere to such a pact, it will mean
that they have effectively decided to
take again the path of cooperation."
"What purposes will the interna-
tional fund which you suggest creat-
ing in your report specifically serve?"
he was asked.
"What I have in mind," he ex-
plained, "is a common fund to serve
two purposes. The first is moral-to
show a will to collaboration, not in.
words but in fact. Throughout the
report.I insist that the recommenda-
tions are addressed to nations willing
to participate in a general effort.
Obviously, participants in an inter-
national fund cannot enjoy its facili-
ties without accepting other condi-'
tions of cooperation."
"The second purpose is commercial,
simply. Such a fund would provide'
a means to help countries in need and,
help in the transition from abnormal
to normal trade, conditions. It cannot
be forgotten that we are dealing with
an abnormal situation. In normal-
times rich nations are bankers of
others, always have been, should be,
and must be again." ,
"As things are, commerce cannot be
To Trace Plan
For Recovery
Colonel W. Stewart-Roddie
To Present Third ralk
Of Series,_Nov. 29
Dr. Paul Van Zeeland, farmer
prime minister of Belgium, will lec-
ture on "Proposed Roads to Wo, id
Recovery" at 8:15 p.m., Tuesday, at
Hill Auditorium. This lecture is the
second of the oratorical series.
Col. W. Stewart-Roddie, authority
on European affairs who has spent
ten years in Germany, will follow Dr.
Van Zeeland on the Oratorical Asso-
ciation program. His talk, on Nov. 29,
will be entitled "European Mosaic."
Warwick Speaks Jal). 12
"West Around Cape Horn," account
of a sailboat journey around the dan-
gerous Cape, will be Capt. Warwick
Tompkin's subject when he speaks
here Jan. 12. Motion pictures will
illustrate the talk.
R. H. Bruce Lockhart, author of
:he widely read "British Agent," "Re-
turn to Malaya," "Retreat from
Glory," and "Son of Scotland," talks
on "An Englishnan Looks, at the
World" Jan. 26.
Strabolgi, Knight Talk
Lord Strabolgi, famous British
,.statesman and economist, is to speak
Feb. 16 on "The Pacific Situation."
He will be followed by Capt. C. W. R.
knight who will speak on Feb. 28 on
the topic, "The Leopard of the Air."
This talk, which is about the crowned
hawk eagle, will be illustrated by mo-
dion pictures.
The series will be concluded on
Mar. 8 by Harrison Forman speaking
on "Tibet, the Forbidden Land."
Motion pictures will also be shown
with this address.
shifted back overnight into natural
channels, but this fund would supply
self-liquidating credits, if and where
necessary, for a gradual return to the
classic method of carrying on busi-
ness."
i
Reporers skedhim h-t e_ o
ness."
F lash!
M
UNIVERSITY "SCOOP!"
The Oratorical Association of the University of Michigan presents
aumerA lremileA CL# f 4iwm
t
'A N
A7mEELA41D
Author
'4
of the Famous
World Trade
Report
HILL AUDITORIUM
0
Two Photo-Flashes
of Dr. Paul Van Zeeland
in Action
ADMISSION: $1.00 and 75 cents
UPPER RIGHT-In Conference with Presi-
dent Roosevelt at the White House on
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