Evening star., 1933-06-18
PARLEY SET BACK
BY !. s. REJECTION
Of STERILIZATION
Roosevelt Stand DESTROYS
Hope for Early Results in
Monetary Matters.
AMERICAN TARIFF PLAN
GIVES ENCOURAGEMENT
French Plan to Continue Fight to
Fix Value of Dollar and
Pound.
BY the Associated Press.

By the Associated Press.
LONDON. June 17.-News that the
American Government is not prepared
to accept the currency stabilization plan
drafted at London by experts at the
World Economic Conference changed
the whole aspect of the parley tonight,
destroying the generally accepted view
that the world monetary problem would
be the first to yield concrete results.
The American delegates heard the
report from Washington unofhcially as
they returned from the royal garden
party at Windsor.
Early editions Of London Sunday
papers were already appearing with
the headlines Conference Makes
Progress" and asserting an arrangement
for the stabilization of the pound and
the dollar was near at hand.
Bankers to Reconvene.
Central bank officials, it was said in
conference quarters where the news
was read, will have to resume their pri
vate conversations regarding currency
stabilization at the earliest possible
moment and, while keeping in the
closest touch with official government
delegations, renew their effort to ham,
mer out an accord for fixing currency
values at satisfactory figure.
The French delegation. which has
insisted from the beginning of the con-
ference that stabilization of American
and British exchanges must be the
first step taken at London, was hopeful
before the news of President Roosevelts
opposition to the tentative agreement
was received that the first stage OF sta
bilization might soon be achieved.
The rejection of the currency scheme
by the American Government brought
gloom to the conference, which had
closed its first week on hopeful note
in view of the general expectation that
the dollar and the pound would soon be
subjected to control operations.
A proposal for general all-around
10 per cent reduction of tariff rates
was presented to the economic COM
mission today by the American delega-
ton. increasing the feeling that the
conference had well begun and was on
the road to real achievements.
Lord Beaverbrook's newspaper, the
Sunday Express, in an editorial regard
ing reports upon negotiations for sta
bilizing the pound and the dollar at
$4.05. said:
1T was foolish to suppose that such
an agreement could be carried through.
1t would be tantamount to putting the
dollar back on the gold basis. That
would mean that President Roosevelt
has thrown away the right which the
Senate conferred on him to devaluate
American currency. 1t could not be
done"
Several American delegates privately
disowned the 10 per cent tariff cut plan
which was published as suggested
agenda for the economic commission in
the field of tariffs and commercial pol
fey, submitted by the American dele
CATION"
The plan was drawn up by Henry
Chalmers of the Bureau Of Foreign and
Domestic Commerce, a member Of the
technical staff, and its submission to
the conference came as surprise to
most of the Americans, who said no
vote had been taken on 1t.
Merely a Suggestion.
After hurried inquiries were made, 1t
was said at American headquarters that
the planned submission did not commit
the delegation, and the idea was simply
a suggestion for consideration. One
delegate said he believed it stood little
chance for adoption, and pointed out
the delegation has no authority to COM
nit the United States to 10 per cent
tariff reduction as that power reposes
in Congress.
It was not discovered who authorized
submission of the plan, which provides
for "a 10 per cent horizontal reduction
of import duties which were in effect
in various countries on June II and
would become operative on ratification
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