Evening star., 1933-05-29
BY M. X. WHITELEATHER,


PARIS CPp-Two main problems will
occupy the French at the World Eco
nomic Conference which meets in Lon
don ON June II.
They are, in brief:
1-Stabilization of the dollar and
sterling.
General use of gold as a monetary
standard.
On these two questions the French
delegation is expected 20 center its &C
tivities. On other subjects a more pas
sive role appears likely.
Sterilization French Need.
France would gain by stabilization
and by return of the gold standard for
wide fluctuations affect the franc when
It fights for world markets in the same
ring as the dollar and the pound.
Heretofore the franc was a bantam
weight in the commercial prize ring,
while the dollar and sterling were
heavyweights.
But since the dollar, on April 19,
followed sterling off gold the franc
spurted to the front as a world me-
Ol Ills SuOOCll plCo-
tige, however, did not help French bus
ineSs, since American and British
goods were better able to compete with
French products in and outside France.
Would Lift Disadvantage.
This disadvantage the French would
like to overcome by getting England
and the United States back on gold.
On almost all other questions the
French are expected to sit and listen
while delegates from other countries
talk, for official quarters foresee that
on most Of them much will be asked
Of France.
Experts have figured that three chief
concessions will be suggested to the
French:
IA more liberal lending of money
abroad
abolition of the quota system of
regulating imports.
3-Lowering of tariff rates.
Caution will be observed on these
subjects, government quarters say. The
government has been seeking a freer
hand in commercial matters so as to
have stronger negotiating powers at
London.
In spite of this official reserve, a
strong body of opinion is demanding
that the delegation headed in the ini-
tial stages by Edouard Daladier.
premier, and later by Georges Bonnet,
finance minister. join the represent
atives of other countries in an active
attempt to pull down barriers to COM
merce
Caillaux Attacks Production.
Joseph Caillaux. the eminent flnan-
cier, has proposed, for example, that
France lead the way in measures de-
signed to limit production of basic COM
modities SO as Just to meet world con-
sumption and prevent the collapse in
prices that accompanies accumulation
of stocks
Unless the world decides to do this"
M. Caillaux said, the conference will
be condemned to sterility and We shall
not get out of this crisis"
Exporters and importers, hit by a 60
per cent drop in foreign trade in recent
years, also are demanding action. They
have pointed out that income from
American tourists alone fell from $780,
900 600 in 1928 to $7l 900 900 in 1881.
Government Deficit Problem.
The public cash box has reflected this
slump in business. The budget deficit
OF $4,000 600, 900 francs has kept sue
cessiVe cabinets busy since last Autumn
trying to make ends meet.
While the conference moves along the
French will be seeking settlement of the
war debts which they owe to the United
States and to England. The subject
has been omitted from the London pro-
gram but the French say 1t must be
disposed Of before the conference ends.