INTERNATIONAL LABOUR CONFERENCE, GENEVA, 1938. REPORT OF NEW ZEALAND DELEGATION.

Appendix to the Journals of the House of Representatives, 1939 Session I, A-07

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1939. NEW ZEALAND.

INTERNATIONAL LABOUR CONFERENCE, GENEVA, 1938. REPORT OF NEW ZEALAND DELEGATION.

Presented to both Houses of the General Assembly by Leave.

INTERNATIONAL LABOUR CONFERENCE, TWENTY-FOURTH SESSION, GENEVA, 2nd TO 22nd JUNE, 1938.

The Hon. the Minister of Labour, — We have the honour to transmit herewith report on the proceedings of the twenty-fourth session of the International Labour Conference, held at Geneva from 2nd to 22nd June, 1938. There is also appended the report of the New Zealand workers' delegate and the New Zealand employers' delegate. James Thorn. Henry E. Moston.

REPORT.

The New Zealand delegation was as follows:— Mr. James Thorn, M.P. for Thames. Mr. 11. E. Moston, C.8.E., Assistant Secretary of Labour, and Chief Inspector of Factories. Mr. G. G. Camp, Assistant Secretary of the New Zealand Employers' Federation. Mr. A. Cook, Secretary of the New Zealand Workers' Industrial Union of Workers. The Conference met at 11 a.m. on Thursday, 2nd June, 1938, in the Conference Hall of the League of Nations, Geneva, and adjourned sine die at 1.40 p.m. on Wednesday, 22nd June. There were eighteen plenary sittings of the Conference. This year the Conference had the advantage of meeting in the Palace of the League of Nations, and the amenities provided added greatly to the comfort and smooth working of the Conference. Before proceeding with our report of the Conference proceedings we would like to state our impressions, to give some observations on the work of the International Labour Organization, and to illustrate the value and influence that it can have on a country like New Zealand. It lias been said that the work of the Organization is largely futile and that New Zealand cannot exercise any great influence in achieving the objects of the Organization. The fact is, as recent developments have shown, that problems, whether they be finance or any of the complications of the economic or industrial system, are not merely the concern of any one particular country. For instance, if the workers of any one country have a low standard of life, with long hours of work and few social amenities, they may undersell in the world's markets to the disadvantage of workers in other countries where a higher standard of industrial conditions is observed. It was therefore gratifying to hear delegates from the various countries, including many of the backward countries, give details of the progress in social and industrial improvements, largely through the influence of the International Labour Organization. These are referred to later in this lepoit. The speeches of the delegates disclosed a remarkable development of social services in some countries within the past four or five years.

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One of the main features of the International Labour Organization is its permanence. International Conferences may reach agreements or adopt Draft Conventions, and the International Labour Office provides the necessary machinery for putting into effect the decisions of the Conference. The adoption of a Draft Convention is not the final act so far as the office is concerned; it must endeavour to persuade Governments to ratify it. However, the extent of the influence of the International Labour Organization cannot and should not be judged by the number of Conventions adopted and ratified, as many of the social services adopted in various countries to-day may not be the direct result of a Convention. Nevertheless, the progress in this field is largely the result of the contact with and the influence of the International Labour Organization. Notwithstanding the tendency in recent years for some countries to revert to purely national modes of thinking in dealing with political and economic policies, there was little evidence that this applies to the same degree in connection with industrial and social matters. The recent Conference was as strong and as influential as that of any previous year. Nine Ministers of Labour and eminent persons responsible in their own countries for social policy took part in the Conference. Whilst Germany and Italy were not represented, the, fact that America sent a strong delegation was a powerful influence in the deliberations. In the words of the President when giving his closing address, a real international spirit animated the work of the Conference. Mr. Harold Butler, Director-General, refers in his report to the increased scope of the Organization as follows:— " The larger horizons that have come with recent years have been accompanied by an even more important increase in the scope of its operation. When the International Labour Organization was first set up it was, of necessity, conceived against a pre-war background of economic laissez-faire. The various countries were one and all working on a system based essentially upon private enterprise and free competition, with social progress more or less in the na.ture of a by-product. Already, however, the leading nations had found it necessary to temper the excessive rigours of an economic system which, if carried to its logical extreme, could work children twelve hours a day and leave a man to starve if no employment were available. These beginnings of a protective labour code in the various countries were continually held in check by the real or imagined handicap they imposed upon a country in international competition. One of the principal functions assigned to the International Labour Organization was to provide a solution to this difficulty, to make possible an internationally co-ordinated social advance. " During the quarter of a century that lies between the -pre-war world and that of the present day a number of major changes have occurred necessitating the enlargement of the original conception. Countries are no longer working on a system based on the principle of laissez-faire. To varying extents Governments are now deliberately intervening in the economic sphere, the systems in operation ranging all the way from complete State management to discreet Government action applied to the regulation of international trade, the control of money and credit, and the support of industries especially in need of help. A second major change, which is to some extent an ideological consequence of the abandonment of laissez-faire, is that social progress is no longer looked upon as incidental to the economic system, but as its primary objective. " These two changes have fundamentally affected the whole social-economic problem, and with it the basic task of the International Labour Organization. The fact that every Government is now actively operating in the economic sphere has raised vast possibilities both of economic achievement and of international discord. Hitherto, the latter has perhaps been more prominent than the former. During the sauve qui peut of 1929-32, countries took action with a sole view to their oivn short-run self-interest. Often their intervention did at least as much harm to the world as it did good to themselves, with the result that each country's endeavours to raise its own conditions were defeated in large part by the general impoverishment which they produced. At the same time, however, new possibilities of achievement have been opened up. In particular, there is good reason to hope that by financial and monetary control, coupled with schemes of public development, the disastrous downswings of economic activity may be in large part obviated. " As a result of these new developments, both positive and negative, there is immensely more need for co-ordination in the international field than there was in the earlier days of the Organization. It is now seen to be essential that countries, in taking economic action, should consider what the effect is likely to be upon the rest of the world as well as upon themselves. It is because measures such as the Tripartite Monetary Agreement and the commercial policy' followed by Secretary Hull are in accord with this principle that they have a great symbolic as well as a great practical importance. If social advance is to be made possible over a broad- front, countries must become internationally conscious in their economic action. If monetary control and other measures to prevent economic

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depression are to become really effective, they must be internationally co-ordinated. The great industrial countries can do nothing more valuable towards promoting social progress throughout the world than by sustaining a high level of business activity. Without this, as the present decade has conclusively shown, prices of raw_ materials and of agricultural products are ruthlessly forced down; international trade is reduced enormously both in volume and, still more, in value; international, indebtednesst becomes a perpetual source of friction; and international investment dries up. It is particularly in this field that international consciousness is necessary and world co-operation waits to be devised. As Mr. D. 11. Robertson says: ' Unless we can work towards international control of the cyclical movement of trade, sooner or Inter we shall all he back in the gutter playing beoaar-mij-neighbour . . .' " The other enlargement of the scope of the Organization is a direct outcome of the new attitude towards social progress. No country now considers that its duty has been discharged if it merely takes measures to prevent the more extreme forms of exploitation. The aim has been enlarged to include the maintenance of an adequate standard of living for the whole of the people. Here, also, there are new international aspects which cannot be ignored. Fair dealing between employers and workers does not make up the totality of social justice. There are other fields no less important. In particular, there is the wide gap between the remuneration of those engaged in manufacturing and the remuneration of those who work on the land. In the interests both of industrial and of agricultural workers this gap needs to be closed; and it can only be closed by raising the conditions of the workers on the land, not by reducing the conditions of those engaged in manufacturing. If this is to be successfully accomplished, international as well as national action is required. Yet, again, if social justice is to form a basis for universal peace, there must be some approach to greater economic equality between nations. So long as there is such extreme poverty as still predominates in a large number of countries, there can be no question of justice, and in the end no possibility of peace. Here, also, international action is required. It is not suggested that the Organization can by its own efforts bring about such enormous changes as these. What it can do, and by terms of its Charter is bound, to do, is to insist upon their necessity and their inevitability. Its duty is to hold, up the social mirror to every type of economic action and experiment—to discern the types of State intervention which are socially valuable from those which are socially pernicious. In short, it has to ensure so far as it may that international co-ordination shall be planned and executed in the interests of social progress and in the light of the changed circumstances of the present age. "The increased importance attached to the problems of agriculture, migration, housing, nutrition, indigenous labour, is one sign among many of the widened outlook of the Organization. Its function is no longer conceived as mainly consisting in drafting Conventions to regulate the competition between the industrial countries. Working-conditions in industry constitute only one part of the social problem. Shorter hours, protection against industrial accident and disease, unemployment andl old age, the care of women and children, are important elements in the maintenance and improvement of the general standard of living of every community, but they are not sufficient in themselves. Without regular work, ivithout wages adequate to ensure a civilized level of feeding, clothing, and housing—in a word, without a solid economic foundation —labour legislation is only a very partial remedy for the social evils which the International Labour Organization was created to combat. It is therefore an inevitable and healthy development that its outlook should have continued to broaden and that it should have been gradually led to consider the general questions upon which the welfare of the workers, both in industry and agriculture, ultimately depend. A new period of intense and varied activity is opening out before the OrganizationIts purview is no longer confined to the technical problems of industrial legislation which it inherited from the International Association for Labour Legislation. Its horizon embraces all those wider questions which are inherent in the vast problems of stabilizing employment and lifting the standard of life to more civilized levels everywhere. These problems are squarely attributed to the jurisdiction of the Organization by its Constitution, They are the essence of its existence. In the future its work may not be cast in the same conventional moulds. Its Constitution may have to be adapted to meet new circumstances as they arise. Its centre of gravity will no longer be located in the middle of Europe. Its outlook will become more world-wide as time goes on. It may some day acquire the universality which it has never yet entirely achieved. But, whatever its vicissitudes, its future is assured as long as civilization based on the economic dependence between nations and a common aspiration to improve the lot of the great masses of mankind endures. As the American philosopher, John Dewey, lias said: ' Internationalism is not an aspiration but a fact, not a sentimental ideal but a force,' Only the

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arrest of the wpwa/rd movement of the human spirit which began with the Renaissance and the destruction of all its achievements, intellectual, material, and moral, could beget a world in which an International Labour Organization would find no plaice, Whatever the fears and.■ forebodings of those who hold their own faith weakly, there is no reason to fear that the world, having known the joys of freedom and enlightenment, is destined to relapse into the brutish obscurity of another Dark Age." Some disappointment may be felt over the decisions of the Conference this year, as in the case of one only out of the six major subjects under discussion was a, final decision reached—viz., Statistics of Hours and Wages in the Principal Mining and ManufacturingIndustries, including Building and Construction, and in Agriculture. In the case of the other subjects the Conference decided to submit its conclusions to the various Governments for a report. Next year the Conference will be asked to adopt Draft Conventions or Recommendations on each of the subjects in the light of the further information obtained. A shadow was cast over the Conference proceedings on account of the resignation of Mr. Harold Butler, the Director-General of the International Labour _ Organization. Mr. Butler has proved a worthy successor to Mr. Albert Thomas, and his eminent qualities and faithfulness to the great work of the Organization was referred to by the President of the Conference and others who have been closely associated with him during the six years that he has directed the work of the Organization. Mr. J. Gilbert Winant, who will succeed Mr. Butler, bids fair to follow the high standard laid down by his predecessors. Mr. Winant was appointed as Third Assistant Director when the United States joined the Organization in 1934. Formerly a schoolteacher, he afterwards commanded an American air squadron during the Great War. He played some part in the discovery and development of the Texas oil-wells, and before taking up his position at Geneva was twice elected Governor of the State of New Hampshire. He was also first Chairman of the Social Security Board created under President Roosevelt's administration. His appointment is significant of the position now occupied by the United States in the International Labour Organization, and it can hardly fail to strengthen the American contact with international relations. REPRESENTATION. Fifty countries were represented, representation in sixteen cases being by Government delegates only. The total composition of the Conference was 157 (90 Government delegates, 34 employers' delegates, and 33 workers' delegates). In addition, there were 257 advisers (119 Government, 60 employers, and 78 workers). Details of the representation are recorded in a table attached hereto. Thus the countries members of the International Labour Organization not represented at the Conference were Dominican Republic, Italy, Liberia, Nicaragua, and Paraguay. Commenting on the representation at the Conference, which, despite the disturbed state of the world, was almost as large as the record attendance in 1937, the Chairman of the Governing Body used this as proof of the strength of the Organization. ELECTION OF PRESIDENT AND VICE-PRESIDENTS. The opening of the Conferences devolves upon the Chairman of the Governing Body of the International Labour Office, Mr. F. W. Leggett, C.8., Principal Assistant Secretary of the British Ministry of Labour (this under the Standing Orders). After reviewing problems associated with the items on the agenda, Mr. Leggett referred in general terms to the work of the International Labour Conference, which, he said, because it represented Governments, employers, and work people, was " the greatest advance yet made in the machinery for world human collaboration." Mr. Leggett's outlook is fairly indicated by the following quotations from his speech:— " The world needs a new urge on the road which leads to fellowship and peace. This must be found in the sustained patience of those who are determined to understand and. help, even when their efforts seem to meet with only partial success. ■ . ■ The outstanding problem of the world is poverty, and it is because poverty is so widespread over the world, and not because of any lack of good will that there is the illusion of failure in regard to some of the policies which have brought this Organization into prominence. It is not real faihire when the object aimed at is too high in the circumstances in which so many countries find themselves. We should rather have the courage to face the situation and deal, with those fundamental though unpleasant facts which are holding progress back. Applying the test of the better fed, better clothed and housed, better protected against the misfortunes of life, and whose dignity as human beings is safeguarded, there can be no doubt that this Organization has been a great success. . . . The Organization will make its greatest contribution towards the peaceful achievement of justice in social affairs arid realize its greatest value only to the extent that it is able to create and'■ preserve neighbourly human relationships between nations and persons. . . . With more kindliness the world can be transformed, and our children will have a better chance not only of living, but also of living as civilized beings in a friendly world."

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Mr. Harold Butler, the Retiring DirectorGeneral of the International Labour Office.

Mr. J. Gilbert Winant, the new Director-General of the International Labour Office.

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Election of the President is the first business. Professor Falcao, Minister of Labour, Industry, and Commerce, of Brazil, was unanimously elected President for 1938. Mr. Falcao, who is an eminent historian and economist, as well as a Minister of the Government, was admirably qualified, both by ability and experience, to preside over the discussions. Three Vice-Presidents as follows were elected at the second sitting of the Conference:— Mr. Aalberse (Netherlands), Government group. Mr. Knob (Hungary) employers' group. Mr. Hallsworth (British Empire) workers' group. COMMITTEES. In accordance with the usual procedure, Committees were set up to examine the subjects before the Conference. Nine such Committees were appointed as follows, the total membership of each, together with the number of representatives of Governments employers, and workers respectively, being given:— Committee on Standing Orders: Twenty (ten, five, and five). Resolutions Committee: Twelve (six, three, and three). Committee on the Application of Conventions: Fifteen (five each). Committee on Technical Education: Sixty (thirty, fifteen, and fifteen). Committee on Indigenous Workers' Contracts: Sixteen (eight, four, and four). Committee on Migrant Workers: Forty-four (twenty-two, eleven, and eleven). Committee 011 Hours of Work in Road Transport: Forty-eight (twenty-four twelve, and twelve). Committee on Statistics: Thirty-six (eighteen, nine, and nine). Committee on Hours of Work: Sixty-three (twenty-seven, eighteen and eighteen). New Zealand Representation on Committees. New Zealand was represented 011 the following three Committees: Technical and Vocational Education and Apprenticeships (nine sittings) • Mr Moston. Hours of Work in Road Transport (eleven sittings) : Mr. Camp, Mr. Cook Hours of Work (nine sittings): Mr. Thorn, Mr. Cook. The signatories to this report attended every meeting of the Conference and of their respective Committees. Composition op Conference Committees and Systems op Voting therein. Over a period of years the composition of Conference Committees and the systems of voting therein have been the subject of annual decision, experiment being made of the Riddell_ system and the Riddell-Tzaut system (so called from the names of the authors). The object of both systems has been to give as many Government delegates and advisers as possible an opportunity to sit on Committees and at the same time maintain the tradition that each group have equal voting strength. Experience has demonstrated that difficulty arises particularly where small delegations are sent. Where such delegations desire representation on several Committees, and if such Committees meet simultaneously, the members cannot do justice either to the Committees or to their Governments. Hence it has been decided to invite Governments to consider the whole question and thereafter transmit their views to the International Labour Office for the consideration of the Governing Body. REPORT OF THE DIRECTOR. The Director's report gave a statesmanlike survey of world economic conditions in 1937, with particular reference to the recovery up to the beginning of the year and the recession at the end of it. Stress was laid on the influence of political unrest—wars, economic warfare, and othei disturbances in retarding full recovery and in threatening the recovery already achieved. Pointing out that, in 1936 no less than 11 per cent, of the net product of industry was spent on armaments, and that this form of expenditure was even greater in proportion in 1937, the Director contended that, while rearmament policies provided a substantial element in the world's total commercial activity, " genuine prosperity might have been more abundant and its prospects of endurance greater had not an excessive portion of the national wealth of almost every country been diverted to war equipment," In support of this contention the following sentences from a pronouncement made by the International Chamber of Commerce at its Berlin Congress in 1937 was quoted: " A competition in armaments endangers the peace of the world and depresses its living standards. It is therefore of urgent importance to compose the political disputes, to quiet the apprehensions by which swollen armaments are justified, and once more to devote economic resources in large measure to improve the lot of mankind. Inadequate standards of material well-being are causes of social and political unrest and so enhance the risk of war. In all countries the rapid progress of science and invention, and modern methods of production and transport, would, permit of the standard, of living being greatly improved, provided the world would co-operate in rational distribution."

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There was deduced from this that, while it was desirable for each nation to develop fully its own resources, international action was necessary to make available to mankind the means of improved standards of life, but that so long as " economic development is encased in a military strait-jacket" it will be impossible to provide the food, clothing, housing, health, and leisure that technical progress in this century had brought within the people's grasp. The recession was attributed to three main causes: a decline on the stock exchanges in the United Kingdom and the United States; a rapid rise in wholesale prices in many countries, with the cost of living in pursuit; and the collapse of prices of a number of raw materials which had been forced to unduly high levels by speculation. I elt worst in the United States, the recession had not affected other countries in a major degree, and several considerations supported the belief that the outlook would not be discouraging " if the spirit of international warfare could be banished from economic and political relations " In the Director's opinion, however, optimism would be foolish. "No secret of intense warlike preparations is made in a large number of nations. Progressively the whole national life and the activity of every individual is being subordinated to the requirements of the State in the event of conflict. . . . In such circumstances, vast sums which might otherwise have been profitably devoted to fighting sickness, to life, to sweetening old age, to adding a cubit to the knowledge and culture of mankind, are diverted to the destruction of what man has so painfully acquired or created by the sweat of his brow, and to the exaltation of death by the perfection of every method available for extinguishing human life with all the thoroughness and horror that science can devise. What was last year a darkening shadow now threatens to blot out the light from the whole earth." _ The report of the Director and the discussion thereon is regarded as one ox the important aspects of the Conference proceedings. The debate on the report was extremely interesting. Sixty-nine delegates took part in the debate, including the two New Zealand Government and the workers' representatives, the text of the Government's delegates' speeches being as follows: — Summary of Speech by Mr. Thorn. There are only one or two points in the Director's report to which I propose to refer, but I should like to express a keen appreciation of the breadth of vision, the boldness of expression, and the constructive attitude which are characteristic of this report. These are qualities that are greatly needed in the world to-day. I wish also to express a special regret at the Director's forthcoming departure, both because of the services that he has rendered to the International Labour Organization and because we had been hoping that he would soon be paying an official visit to New Zealand. At the same time, I should like to say that the New Zealand Government will be glad to extend to his successor the same invitation to come and help us strengthen public interest in the work of this Organization. , If there is one thing which the Director's report drives home, it is the impossibility of reconciling the present trend of world affairs with the programme of social betterment for which this Organization stands. If the international situation continues to deteriorate, our efforts to improve the lot of the workers throughout the world will be doomed to failure. Armaments and social progress are conflicting purposes, and the contest is an unequal one. There is an appalling disparity between the enormous sums spent on preparation for war and the miserable pittance available for organizing peace. Thousands of millions of pounds are being spent on armaments, and a paltry £1,000,000 a year on the League of Nations and the International Labour Organization combined. We cannot in this Conference attempt to deal directly with the problem, of armaments; but we can at least express our conviction that something must be done to make the contest between the forces of destruction and the forces of social progress a little less unequal. It is up to us to insist that some fraction of the sums now spent on armaments should be devoted to the cause of international collaboration. There is a vast amount of useful work that the International Labour Office could do if, instead of a mere £410,000 a year, it had at least £1,000,000. If war is to be avoided, we must find other ways of solving the world's problems. We must strengthen the constructive agencies that are preparing peaceful solutions of the underlying difficulties, and above all we must intensify our efforts to promote that social justice and social security which alone can form a sound foundation for peaceful international relations. There is no truer phrase in the Director's report than that in which he recognizes that, the International Labour Organization could not have held its own in the face of general turmoil had it shortened sail or sought temporary refuge in inactivity. Now is the time when we must forge ahead and expand the work of the Organization. The fact that its budget has been limited in the past is no reason why the° only organization available for promoting international social progress should be similarly restricted in the future, We in this Conference, bearing in mind the present critical situation of the world and the urgent need for services such as this Organization alone can render, should urge the Director of the International Labour Office and the Governing Body to be bold in conceiving, in budgeting, and in executing their plans for achieving the objectives for which the International Labour Office was founded.

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1 here is one further suggestion which I feel bound to make in view of the general situation discussed in the Director's report and in view of what has occurred since that report was written. 1 am one of those who believe that by constructive efforts of the type i have suggested a world catastrophe can be avoided; but that is no reason why we should shut our eyes to the risks and refuse to take out a proper insurance policy for +* ®+ , we v most * seems to me to be urgently desirable, and indeed essential, that the International Labour Organization should be equipped with a reserve fund adequate to ensure the continuance of its work through any period of emergency I do not propose to elaborate this suggestion at this stage, but if sufficient support is forthcoming those who share the views I have just expressed I should welcome an opportunity of moving an urgent Resolution on the subject at a later stage of this Conference. It will hardly be necessary for me to add that the Government which I represent is a iirm believer m the principles and aims set out in the Constitution of the International Labour Organization. The New Zealand Government sees in these principles and aims a potent means of organizing a peaceful wqrld in which the mind of mankind mav concentrate on useful industry and social progress, and to the utmost of its strength and capacity it will embody them in its legislation. tt T ? 37 session ° n f t} 16 Conference the New Zealand Minister of Labour, the Hon. H. . Armstrong, stated that he would recommend the ratification of those of the Conventions that could reasonably be applied in our country, and this assurance has of--™ out p In February last the New Zealand Parliament authorized the ratification ?L!l^ y +^ 0n i VentlonS ' thel^, bem B' 111 both Houses virtually no opposition. The «Tat Npw n 7p ri l d . w f®. covered b y the listing law, but their ratification will indicate that New Zealand is taking seriously its obligations as a member of the International Laboui Organization. Ihe remaining Conventions are now being studied with a view a ° i!? P ™P n actlon > and ' as 80011 as the Parliamentary situation permits, as many as have _an application to New Zealand conditions will be given legislative effect ++ i PaSt T ar the position in New Zealand has been greatly eased, the total numbers unemployed, including those on relief work or sustenance having been reduced to under fifteen thousand in March, .1938. This figure includes eight thousand who have been medically certified as unfit for work includes eight Although some contribution to this betterment has been made by the more prosperous condition of the external market for New Zealand's primary products the iT S nf th IS p ulldoubted ly due to definite acts of Governmental policy. The wide enforcement forty-hour week in and out of the public services, and the restoration of wages and salary cuts and increases of wages (as a result o'f which the total of wages and salaries increased by 42 per cent, between 1935 and 1937), together with a Eepublic worS programme and measures aiming at the absorption in skilled trades of young men who lost the opportunity of apprenticeship during the years of crisis, at the placement of haw SU]ltable remunerative employment, and at the stimulation of important industries have had a marked effect in improving the unemployment situation. ' As it is often argued that such measures as the forty-hour week and ITtKS tal - 6a ? on industrial stability and ZLpmtH will has this result oeenmd Tt. ? accounts nor in the industries themselves surpl us of £810 000 i fili ancia year ended on 31st March last a budgetary r <4, Jy 1 6 o £ o B oor,s s ri r r eS«dirM 3 7 po s ,i0,, ,,;' s = ber of persons employed in them records „e K SSSfcSW °° emtar " M from New Zealand'. With reference to the organization of employment one fruitful activitv mio-lit Hp S pT, ° rr." ? St " te S ™ f ° r Pla< ™ le,lt ot nnemp%ed SrS executive positions can-vine £500 n TM n ti V . , ' a& Placed men m mrnmmmm normal purpose, it now performs some of the functions of a + addl V° n .*? lts geme. Already one Australian State-Vic, ona-has Vetew XS'StoS probably the mostlmportmit taishTg™ The°Kttmt'rf"tta hS""'"b ™ I>loym , e . n '' faced the present Government when it eame into office in I<W m k 8 slorta f e which following figures: the number of marriages Xring 1932 B ' aUg ° d fr T the and the number of building-permits in the period amounted to WM

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To meet this situation two courses of action were taken. Lending for housebuilding by the State Advances Department was speeded up and put on a more generous basis. In September, 1936, a Housing Department was set up. This Department was financed by ail advance from the Reserve Bank (which we have nationalized) of £5,000,000 at 2 per cent. Although it erected two factories for the provision of joinery and ioi dry-kilning timber, the Department is using the existing housebuilding organizations, and in* March,' 1937, it let its first contracts to private firms. By the end of 1937, land had been acquired in sixtv-nine towns and tenders had been called for some two thousand four hundred houses in fifty-six towns; eighty-three different contracting firms were working for the Department, two thousand seven hundred workers were directly employed, and it was estimated that six thousand workers altogether were employed as a result 01 the Department's operations. By the date when I left New Zealand, approximately four thousand houses had been contracted for and eight thousand workers were employed either directly or indirectly. The houses are from four to six rooms, of widely diverse designs; each stands on its own plot of land and contains every modern _ convenience. The Department has been hampered by the shortage of artisan labour, but its aim is to build five thousand houses a year, and for these the money will be provided through the Reserve Bank. . -at r? i j The Government is also determined to develop a balanced industry m New z,ealana — that is, we do not propose to rely solely on primary production for our prosperity. It is foolish to possess a'resource and refuse to develop it. In the Province of Nelson we have a deposit of 60,000,000 tons of iron-ore. Private enterprise, with the aid o± Government subsidies, has failed to work this deposit successfully, and the Government, after taking expert English advice, resolved to work this deposit as a btate enterprise, and last session an Act "was passed providing a sum of up to £5,000,000 for this purpose. The enterprise will be directed by three Commissioners responsible to the Minister of Industries and Commerce, and will employ approximately one thousand five hundred men, who with their wives and families will reside in a State town built on modern town-planning lines. In the coming session of Parliament the New Zealand Government will enact a national health and superannuation scheme, under which we plan to provide the following health services: (1) A universal general practitioner service free to all members of the community requiring medical attention; (2) free hospital or sanatorium treatment lor all; (3)' free mental hospital care and treatment for the mentally afflicted; (4) free medicines; (5) free maternity treatment, including the cost of maintenance in a maternity home. . As the health organization develops, other benefits will be provided, including dental and optical treatment, and free home nursing and domestic help also when the necessary staff has been trained to make this practicable. On the superannuation side substantial improvements are to be made in the existing pensions system. These will include, for the first time, an orphan s benefit of 15s. a week up to sixteen years of age, a sickness benefit which will be payable through the friendly societies, and a disability benefit for those who cannot qualify for the invalidity pensions. In addition, more generous provision than at present exists will be made for old-age pensions, widowed mothers pensions, miners' phthisis pensions, and family allowances. To cover the cost of the scheme and at the same time to provide unemployment benefit we plan to establish a Social Security Fund financed by a tax of Is. in the pound on all Avages, salaries, and other incomes, together with a subsidy of equal amount from the consolidated revenue. When this scheme comes into operation there will hardly be a person in New Zealand who will not be safeguarded against the hazards of life and the misfortunes consequent upon the prevailing system of society. It may be of interest to add a brief reference to our Bureau of Social Science Research established last year. To this Bureau experts on nutrition, industrial psychology, education, housing, recreation, and similar matters have been appointed, together with others holding enlightened views on economics and social life. The Bureau will study important questions—it has already commenced a thorough investigation of the living standards of our dairy-farmers—and its reports will provide guidance for Government action. It will be realized from my statement that the New Zealand Government is actively concerned with the objects of the International Labour Organization. It is our desire to do everything we can to forward those objects both in our own country and in the world as a whole. It may be recalled that at last year's session of the Conference the New Zealand Minister of Labour, the Hon. H. T. Armstrong, drew attention to the fact that the procedure hitherto followed in the election of the Government members of the Governing Body gave virtually no opportunity to a country such as ours to secure representation, and he suggested that some system of rotation might be devised to ensure that each State might have an opportunity from time to time to take part in the work of the Governing Body. Although I am aware that it will be another two years before the question will come up again, I should like to say that this is a matter jn which the New Zealand Government is keenly interested and to which it hopes

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consideration will be given in time to ensure that some solution may be found before „ neXt eiect . lon - The_ New Zealand Government is anxious to take advantage of eveiy opportunity to participate fully in the work of the International Labour Organization, and 1 am confident that it can make a useful contribution to its success. Summary of Speech by Mr. Moston. I wish first of all to congratulate the Director on the veiy able and concise report presented In view of the importance of the shorter working-week and the experience New Zealand has had in this connection since 1936, I propose to confine my remarks mainlv to this subject. The New Zealand legislation aims at a working-week of not more than forty hours for all woikers. It is true, as I shall explain later, that a forty-hour working-week does not at present apply to certain industries. The Factories Amendment Act, 1936, prescribes a working-week of not more forty hours for all workers employed in factories, irrespective of age or Daily limits of hours are also prescribed, with provision for overtime with certain restrictions. Power is given to the Court of Arbitration to fix longer flours, but not to exceed forty-four per week, where the Court is of opinion that' it would be impracticable to carry on the work of the factory with a forty-hour week. The Court has already dealt with a number of applications to extend the hours beyond lorty per week, and the application has been granted where the operations in the factory are affected by the_ seasons, such as in dairy factories, meat-freezing and wool-scouring lactones, and also m the case of certain factories carrying on a continuous process. Now,_ the Industrial Conciliation and Arbitration Amendment Act, 1936, covers workers m any industry, including any calling, service, employment, or handicraft, and me Court must fix the_ hours of work at not more than forty per week excepting, again where the Court is satisfied that it would be impracticable to limit the weekly hours to lorty. Where the weekly hours of work are fixed at not more than forty, Saturday work as to be eliminated where practicable—that is, the forty hours must be worked within five days of the week. Mr. Oersted, on behalf of the employers' group, stated in this Conference with reference to the reduction of hours of work in New Zealand: " Moreover no legal limit is set to the amount of overtime that may be worked. Special rates are paid lor overtime, so that there is in fact a legal increase in wages rather than a legal reduction oi hours. This statement is misleading in two respects. In the first place, there is in the ease ol women and boys employed in factories a legal limit to the number of hours of overtime that may be worked. Overtime for woman and boys employed in factories is lestricted to ninety hours per year, with an additional thirty hours in special cases. Extra rates oi wages are payable—namely, time and a half. In the case of workers in retail shops, men as well as women and boys, overtime is prohibited altogether except for stocktaking or for other special purposes. If overtime is worked, special rates—namely time and a nail, and also tea-money—must be paid to each worker. In the second place, it is not correct to say that there is no legal reduction of hours but only an increase m wages. Normal hours were reduced by law to forty in factories and lorty-four m shops, with the proviso that in factories up to forty-four hours might be authorized by the _ Court. The reduction in normal hours effectively establishes the iorty-hour week since, under all awards of the Arbitration Court which constitute extensions ol the statutes and which fix the conditions of employment of practically all wor ters m New Zealand except farm workers and domestic servants, higher rates must be paid for overtime. Usually the rates fixed are time and a half for the first three hours and double-time rates thereafter. It will be realized that, although there is no rigid limit to the number of hours that may be worked by men workers in factories, the ligher rates thus fixed for overtime constitute an effective check, and this is confirmed by the statistics of actual overtime worked. • i th f P resent time tlie forty-hour week is in operation in sixty-five industries including boot and shoe manufacturing, building trades, coal-miners, clerical workers in practically all branches of industry or commerce, engineering and furniture and clothing trades laundry workers, and waterside workers, to mention a few of the principal industries. should mention that m the majority of the trades the forty-hour week was adopted bv agreement between the employers' and workers' organizations. Longer hours than forty per week are provided in awards of the Court of Arbitration covering thirty-one industries including dairy factories, motor and horse drivers, ferry employees, flax-workers meatireezmg workers, seamen, shearers, and retail-shop assistants. There is no doubt however that as existing awards expire the workers' organizations will renew their demands for a reduction m the hours of work. The provision enabling the Court of Arbitration to extend the weekly hours bevond where necessary has been useful, and has made it possible to avoid hardship and repercussions that might have been injurious to certain industries on account of the special nature of the work carried on. It is the practice, however, where longer hours aie permitted lor the Arbitration Court to grant some compensation to the workers in the way of annual holidays or extra time off.

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It can safely be said that with few exceptions a return to longer hours is not desired by employers or workers where the shorter working-week has been adopted. Reduced hours of work to meet the great increase in productivity are becoming more and more an accepted basis of agreement between employers and workers. Some flexibility, however, is necessary in respect of certain industries, and with a proper tribunal to determine these industries and the nature of exemption to be applied any opposition to the shorter working-week should be largely overcome. The New Zealand legislation provides that wages shall not be reduced on account of any reduction in the working-hours. In fact, wages have increased since the shorter working-week came into operation. Opponents of the forty-hour week predicted that the Government's legislation would raise costs of production to such an extent that many industries would be unable to carry on. The latest figures available on factory production— that is, for the year ending 31st March, 1937—show the value of production for the year as £106,000,000, a record level in the history of New Zealand, and far ahead of the previous record of £91,000,000 in 1929-30. The number of persons employed in factories in 1936-37 was 96,400, exceeding the previous record by 9,800. The number of factories —17,126 — exceeded the previous year by 692. Salaries and wages paid amounted to over £18,000,000, also a record. There is, in fact, abundant evidence to show that reduced working-hours have not had the adverse effect on industry predicted by opponents. I have already mentioned that Saturday work is to be eliminated where practicable. In some industries it is recognized that the average rates of output on a Saturday morning, where a holiday is observed after noon, are considerably less than on full working-days, and with the introduction of the forty-hour week the elimination of work on Saturdays has been found acceptable in many industries. I would mention, however, in passing that the five-day working-week has in a measure created a problem regarding the proper utilization of the leisure time. This is a matter to which the New Zealand Government is giving serious attention by encouraging sport and providing easy travelling facilities. In the case of those classes of workers whose hours of work are not regulated either by Act of Parliament or by awards by the Court of Arbitration, provision of a different kind has been made. The Agricultural Workers Act, 1936, is designed to cover workers employed in farming operations. The Act does not specifically fix hours of employment for any class of farm workers. Minimum wages and other conditions, including accommodation, board, and lodging-allowances, are prescribed. However, as a set-off against the non-limitation of working-hours, provision is made for holidays of not less than seven days for every twelve weeks of employment. If, however, a worker receives a weekly half-holiday, then the annual holiday is reduced to fourteen days. I am glad to notice that a full account of this Act and of the circumstances in which it was passed have been given in an article by Mr. E. J. Riches on " Agricultural Planning and Farm Wages in New Zealand " in the International Labour Bevieiv of March, 1937. As this article explained, the Act in the first place applied to dairy-farm workers only; provision was made, however, to bring other classes of farm workers under its scope after consultation with the organizations of employers and workers concerned. Practically all farm workers are now covered by the Act, including orchard workers and market-garden employees. In the case of orchard workers and market-garden employees maximum hours of work have been agreed upon. It is worthy of note that the conditions applying to each class of farm workers are based on agreements between farmers' and workers' organizations. In accordance with a promise made by the Hon. the Minister of Labour to the Conference last year, Parliament was asked to ratify twenty-two Draft Conventions. Consent of Parliament was obtained, and the remaining forty Draft Conventions are now being examined with a view to further ratifications this year. I might also state that during the discussion on the resolution to ratify the Conventions, members on both sides of the House paid great tribute to the work and achievements of the International Labour Office. In conclusion, I should like to recall that during the period from 1890 to 1910 New Zealand was recognized as being foremost in social and industrial legislation. Although a comparatively small country, experiments were tried, and these provided a high standard of living and of working-conditions that aroused interest in other parts of the world. The legislation adopted during the past two and a half years is an endeavour by the present Government to restore New Zealand to the proud position it once held. I should like to mention that New Zealand, situated as it is so far from the centre of activities connected with the International Labour Organization, finds some difficulty in keeping in close touch with the work of the Organization. Our people are not fully conversant with the work of the Office and with the wealth of experience and influence in social and industrial matters exerted by the International Labour Organization. Too little information is given by the press, and very little is done to focus public opinion on the matters brought before the Conference. It is necessary to arouse more interest. I suggest that greater use might be made of the cinema, the broadcasting services, and other avenues of publicity, and that the Director or members of his staff should visit countries such as New Zealand periodically.

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The Director s report indicates the tremendous progress throughout the world in social improvements, and inspires the hope that, notwithstanding war clouds that drift across the horizon, the heart of the peoples is sound. There is ample evidence to show that nations are making stern endeavours to provide happier and healthier conditions and to lessen the sum of human misery. It is the function of this assembly to carry the f or so individual countries forward by means of international regulations and agreements. In this way the International Labour Organization can achieve something that is worth while and assist m bringing about a better understanding between man and man, between employer and worker, and between nation and nation. Director's Reply. f « repl y. , tlie Rector to the debate always receives the full attention of the the iTm> t?J n °^ e +f 0n Jt w f of Particular and emotional interest, seeing that it was the last Mi. Harold Butler was to address m his capacity as Secretary-General to the MY 1 tr end of the debate will be indicated by the following extract from i+ k SPee ' ai l d I , hls ref erences to the International Labour Organization and how it might be more powerfully supported are of importance: ««> ff i rst P +i nt that s . trlke ? 7)16 about the delate, to which I have listened as effectively as the acoustics of this part of the hall permitted during the last five days, has been the abundant proof which it affords that the International Labour Organization is certainly not a sinking ship. At times I wondered whether it was not a flying-boat. The Conference itself is as large as that of last year, which was the largest on record. It comprises the representatives of T U I I 6™ dls }l n 9uished by the presence of no less than nine thTnStJ f Wn9 ft\ f ° V the fiTSt time is Miss F ™nces Perkins, the United States Secretary of Labour, to whom I owe a very special debt of Zl hi 'T 9 ™ Sted rJ Ulfi ! U y « personal MiZers hZthat LthtlTf f mbordm f e t0 claims of home duties. I can assure her that both the Conference and myself deeply appreciate the effort she has made m coming, and, I venture to think that the speech which'she gave us effect it C u U i T l ™ ade r an y where else but in this gathering with the effect it undoubtedly produced. In energy and enthusiasm this Conference certainly shows no falling away from the standards of previous years. At a time when international organizations are said to be in decline, it is encouraging declare tiwt 6 ?? en * nced . legate like Mr. Berg, Government delegate, Norway, declare that the Organization is stronger than it has ever been; to hear Mr Shn Ram say that the crisis, so far as the International Labour Organization is concerned, seems now definitely a matter of the past'; while a large number of U^%S^f ie Am e - Lab °Z iniste 7 rs .°f France, Great Britain, Spain, the t/mfed States of America, and Yugoslavia, have proclaimed the determination of their countries that there should be no weakening of their support of the Organization and no relaxation in the endeavour to promote social progress Mr Jouhaux, workers delegate, France, made an appeal that there should be no slackening m the effort to promote social justice because of the troublous times " % l\S ZL t f it 6 has gw f nhim the for which he asked. I will now turn to the appreciations of my report. I will omit any reference to the compliments which, delegates have been good enough to van to appreciated > and wiU to some of the comments "In writing it, I tried throughout to look the facts in the face and not to blink them or to try to fit them into the framework of preconceived theories oi pi ejudices. I have been accused by some speakers of pessimism, by others of optimism, by others of a contradictory mixture of the two. I am quite prepared to plead guilty to all these accusations, because I think justification may be found for them all in the very nature of the present situation. A purely pes,JSe picture would have been as inaccurate as a purely optimistic picture. Unfavourable factors are inextricably woven with favourable factors. On the one hand there is an enormous increase in capacity to produce; on the other is failure to Tut to the best use. On the one hand is the gradual growth of an international social consciousness which, ran like a golden thread through many speeches ol the other is the exaltation of violence and brutality which characterizes the'war* competition in ai moments. All these things are part of the world at it % to-day and no review, however summary, could honestly omit them It was therefore perhaps inevitable that an attempt to do justice to the Mr - i make m f rep ° rt a PP ear paradoxical to some, readers Mr. Jouhaux, for instance, reproaches me with pessimism in renard in i + ' working-week 1 should not agree with him il thiSZg that 7e IVst of Z Office would be ended if no international agreement for the reduction of honrl of work were arrived at m the immediate future. I should, however, agree with

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him that, although the movement for shorter hours has been delayed by ihs armaments race, it remains, as Mr. Ramadier said, a necessity, because tha essential causes which are making for shorter hours continue to operate. I was glad to note that Mr. Lambert-Ribot at the close of his interesting speech did not quarrel with this conclusion, as he recognized that shorter hours are a necessary consequence of technical progress. "As I pointed out in my report, when the pace of the armaments race begins to slacken, ' the tendencies making for a reduction of hours will have been accentuated rather than diminished. The problem will not only remain, but its solution will have become more urgent. Hence, although there is a temporary pause due to the tremendous drive for the production of war material in most of the principal industrial countries, there is no reason for supposing that the movement towards shorter hours has been arrested or reversed.' A good deal of evidence has been adduced to support this conclusion during the debate. "It appears to be generally admitted that the intensification of production and the fatigue which results from it have generated an instinctive movement towards shorter hours. Mr. Moston has shown that the forty-hour week is working successfully in New Zealand. Miss Perkins has explained how the reduction of hours by collective agreement is likely to be reinforced by Federal legislation in the United States. Mr. Ramadier has shown that the difficulties to which the forty-hour week has given rise in France have been considerably exaggerated, and with the necessary adaptations will no doubt be overcome. Mr. Culley has told us that the forty-five hour week has become general in Australia, largely owing to the adoption of ihe Forty-Hour Week Convention by this Conference; while Mr. Lowe, though an opponent of the forty-hour week, considers the establishment of a forty-five hour week in his own trade in Ireland as a matter for congratulation. " All the evidence goes to show that shorter hours are not merely desirable in themselves, but that they constitute one of the essential methods of meeting technological unemployment. That does not mean, however, that the widespread unemployment produced by trade depression can be successfully coped with simply by reducing hours. To avert such depressions it is necessary, as Mr. Harriman, American employers' delegate said, to maintain the purchasing-power of the people by a proper distribution of the national income and by securing a correct balance between productive capacity and effective demand. But, although the tendency towards the reduction of hours is inherent in the whole development of modern industry, it can hardly be denied that the competitive piling up of armaments is hindering its rapid realization in a number of countries. You can have excessive armaments or you can have social progress, but in the long-run you cannot have both. To say this is not so much pessimism as an economic platitude. " Mr. Hallsworth, British workers' delegate, took me to task for suggesting that the manufacture of armaments may produce any good whatever. I entirely sympathize with him in his dislike of the diversion of national resources to the production of arms. But it can hardly be contested that large-scale expenditure on armaments does create employment and stimulate the demand for raw materials for the time being. Economically and socially, works of public utility would no doubt be vastly preferable; and the apprehensions which have been frequently expressed by business men and economists are sufficient to indicate that the ultimate consequences of excessive expenditure on armaments may be very serious. In the long-run, as Mr. Knob, Hungary employers' delegate, says, armaments must reduce living standards, and to that extent the appearance of prosperity which they produce is artificial. Both he and Mr. Watt emphasized that nothing is more important than planning to prevent the slump which exaggerated expenditure on armaments may be expected to produce in the future. It is unfortunate that the resolution presented by Mr. Watt, Mr. Chu, and other delegates from the workers' group proposing that the Office should make an inquiry into this matter could not be discussed under the Standing Orders. I should like to assure them, however, that this is not a matter which the Office is neglecting. It has already published two articles on the subject in the International Labour Review, and they may be certain that the study of the question which has already been begun will be continued. I will see what can be done to initiate the study suggested in the second paragraph of the resolution. " There is, moreover, one aspect of this question to which reference has been made by Mr. Ernest Brown, Minister of Labour, Britain, Sir Firozkhan Noon, Indian Government delegate, and other speakers which deserves particular attention. One of the outstanding characteristics of the last depression was the collapse of agricultural prices. It is impossible to see how the great agricultural countries in America, Asia, or Eastern Europe can maintain their consumption of industrial goods unless they can obtaiiti a reasonable return for their foodstuffs and raw materials. This is an essentially international problem. Unless the great consuming countries of Western Europe and North America can maintain their purchases of rubber, tin, wheat, sugar, coffee, tea, wool, cotton, and. so on, it is idle to expect any

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improvement of the standards of living in the countries which, produce them. Unless countries like the Argentine Republic, Brazil, and India can obtain good prices on the world's markets for their primary products, it is idle to expect their wage standards to be improved, either in agriculture or in industry. The agricultural countries are largely dependent for their welfare on the ability to sell their foodstuffs and raw materials to the industrial countries. When a decline in industrial activity occurs, the agricultural countries aire the first and greatest sufferers. Nothing can help them more, therefore, than a concerted and determined effort to solve the problem of the business cycle on an international scale. This is perhaps the greatest economic and social problem of our times, as I tried to point out in my report reletting to the East. " I was extremely grateful for the appreciative remarks made about that report by various speakers, but there are one or two criticisms which I should like to try to answer. In the first place, I do not think that Mr. Hallsworth, British workers delegate will find any approbation of low wages. I would entirely agree with him that every effort should be made to raise wages in industry everywhere, and thai one of the most effective methods of doing so is by tradeunion action. But it is necessary to face the facts. If wages in Eastern industry immediately raised to anything like European levels, it would be impossible for its products to be sold at prices which the vast mass of consumers in the East could afford to pay. As Mr. Kupers pointed out in his remarkable speech, there must be some relationship between the level of industrial and agricultural earnings; and in countries which are 90 per cent, agricultural it is unavoidable that wages in industry should largely be determined by what the great body of peasant cultivators can spend on industrial goods. A second point was raised by Mr. Parulekar, Indian workers' delegate, who seemed to think thai I shared the view that no attempt should be made to deal with unemployment in India because Indian labour is migratory. I would like to draw his attention to page 73 of my report, where 1 take precisely the contrary view. I said: 'Formerly, unemployment was rendered less disastrous by the fact that the industrial worker could always fall back upon the village. In future, this is likely to become progressively less possible.' At the same time, though workers are no longer returning to their villages as in the past, the increase in the population of India is driving more and more of them into the cities in search of industrial employment, which inevitably tends to lower the standard of industrial wages. In order to cope with this situation, minimum-wage legislation might no doubt be of considerable value, but in itself it will not be of much avail unlesss there_ is a general increase of prosperity in the countryside. Mi. Hallswor th invited me to enlarge on the methods by which the adjustment between East and West should be secured. There is no simple method, no royal toad. It can be done by detailed negotiation; but it is certain, to my mind, that the elimination of low wages in the East can only be effected through increased production, both in industry and in agriculture.' This cannot be done, however, if the outlets for Eastern production on to the world's markets are closed. Negotiation cannot possibly achieve any positive result unless it is based on recognition of the fact that it is in the general interest to enable the East to increase_ its wealth and to raise its standards through international trade. The alternative is bitter economic warfare, and perhaps in some cases explosions ', which will produce disastrous consequences for the whole world. Of this possibility recent events appear to offer some examples. I hold with Mr. Kupers that a valuable beginning could be made in bringing East and West together by a regional Asiatic Conference, in which the difficulties and claims of the East could be thoroughly explained and sympathetically explored. That, I believe is the first step ... ' " / now propose to say a few words about the working of the Office and on this occasion I am perhaps entitled to speak rather more freely than I otherwise might, since any benefit which may result will accrue to my successor. . . " Some delegates seem to think that it is capable of expanding its efforts indefinitely without further financial provision. I was therefore glad that Mr Thorn, right at the beginning of the debate, laid stress on the impossibility of such miracles being accomplished. As Mr. Hallsworth said, more work can only be a,ccomplished with more money. It is impossible to increase the staff, as Mr Shn Ram and Mr. Parulekar suggested, in order to give more representation to particular countries or in order to carry out work which is at present receiving insufficient attention without enlarging the budget. I should 'like to give a few figures to show that tjie capacity of the existing staff has already been stretched almost to its limits. The number of letters received and despatched has increased from 54,743 in 1933 to 62,687 in 1937, an increase of nearly 15 per cent Vurina the same period the number of pages of Conference documents has increased from 8,475 to 11,204 —some 30 per cent. —while the number of pages translated has risen from 17,200 m 1932 to 20,600 in 1937, a rise of 20 per cent. During

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the present year the pace has still further accelerated. In the first five months the number of pages translated for the Conference has increased another 30 per cent, as compared with 1937. The pressure arising from Committees and Commissions of various hinds has constantly developed. We are now being asked to undertake a number of new activities in addition. A Permanent Agricultural Committee has been established, a Permanent Committee on Public Works has been established, and a Committee on Migration is likely to be established in the near future. All these and other developments of less importance imply more work, which I do not believe can be adequately performed with the existing staff, which has only increased by 8 per cent, in the last five years. " Again, during the debate Mr. Cook put forward a number of interesting for increasing the contacts and influence of the Office in trade-union circles. He and other delegates urged the need for wider publicity, both by increasing our publications and by the greater use of the film and the radio. A good deal more has been done, both as to the production of popular literature on the Office and as to the use of broadcasting, in the last few years. As regards films, we have been considering this question for some time past. I have recently received a report from an expert film-producer proposing the outlines of a possible film, but here again the question of finance at once arises. It appears that a satisfactory film could not be produced for an initial expenditure of less than 60,000 or 70,000 francs, to which it would be necessary to add a further annual sum in order to prevent the documentary material from becoming stale. These are sums which could hardly be provided out of the existing budget. The same may be said as regards correspondents, who afford an invaluable means of keeping in touch with all countries, and particularly with distant countries. We have already increased their number of recent years, particularly in Latin America, but more remains to be done, for which money is not available. At the same time, there is no doubt that considerable reluctance exists among States members of the Organization to increase their contributions at the present time, even by small amounts. It has been a not uncommon experience that Governments whose delegates have pressed for increased activity of the Organization in this Conference have taken a somewhat different line when the necessary expenditure has come up for consideration. " Although the budget of the Organization is drawn up by the Governing Body, ivho are thoroughly familiar with its problems arid requirements, it has to pass through the Supervisory Commission arid the Fourth Committee of the Assembly of the League. Both these bodies are mainly composed of financial experts representing the financial departments of their respective countries _ and among whom there are few who have any first-hand knowledge of the International Labour Organization. It is therefore very important that delegates to this Conference should bring home to their Governments, and not, least to its financial authorities, the needs and possibilities of the Organization. " Mr. Thorn and Mr. Schiirch also called attention to the present state of the reserve fund. During the last few years the League has adopted a policy of constituting a reserve, but as yet it is not sufficient to enable the Office to weather an emergency of long duration. It is unquestionable that the constitution of such a fund is an essential precaution, but the surpluses available in recent years have nevertheless been to some extent paid back to the States instead of being exclusively devoted to making provision against possible contingencies. Unless adequate reserves are accumulated, all the money, labour, and thought which have gone to the building-up of this Organization might be thrown away by some unexpected emergency, _ even though it were to prove purely transitory. "It is extremely encouraging to note that so many delegates have attributed the progress made in their countries to the influence of the Organization. I was particularly glad to hear the testimony of Mr. Noda, Mr. Almarza, and other delegates from Latin America, and particularly that of its father, Mr. Garcia Oldini, as to the beneficial results of the Santiago Conference. I entirely agree with the proposal which is now before the Conference for the convening of a second American Labour Conference next year. I believe such a meeting would be altogether timely, and hope that it will be an successful as the meeting at Santiago. In this connection, however, I note that several of the workers' delegates from Latin America have expressed regret that more complete delegations were not present from that part of the world. I fully realize the financial difficulty which distant Governments encounter in meeting the expense of sending a numerous delegation to Geneva for a considerable period, but there is no doubt that the presence of employers and workers as well as of Government representatives is the characteristic feature of this Organization to which a large measure of its success is due. When I suggested that the Constitution would have to be modified, from time to time in the future as it has been in the past to meet changing conditions, I certainly did not contemplate any infringement of its tripartite character. Mr. Krekitch, Mr. Peyer, and other delegates have said that

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freedom, of association is one of its corner-stones. Without freedom of association, and the freedom of expression which goes with it, it is impossible for the workers to make their voices effectively heard, nor could the systems of collective bargaining, upon the social value of which Mr. Ernest Brown and Miss Perkins so strongly insisted, have been built up. The Constitution makes no discrimination in favour of organizations of any particular doctrinal complexion or political colour, but it does imply that they should be freely organized and administered by their own members without constraint from outside. That is an essential feature of any effective representation either of employers or workers. When I alluded to possible changes in the Constitution, I was thinking, among other things, of the important question of the composition of the Governing Body, to which Mr. Schulthess and Mr. Thorn have called attention. Every country ought to feel that it has a chance of securing a seat from time to time. At present there is a fairly widespread impression that under the existing electoral arrangements there is not as much equality of opportunity as there should be I believe it is very much in the interests of the Organization that this cause of dissatisfaction should be removed before new elections take place m 1.940 My own suggestion would be that the Governing Body, which is now considering the matter, should make a report upon it to the Conference nex,t year, so that everybody. who is interested may have an opportunity of putting forward their views. "In conclusion, after twenty years devoted to the conception, the construction, and the guidance of this Organization, I may perhaps be allowed to conclude with a few reflections on its achievement. Its gradual development has been a slow and at times a disheartening process. The initial task of overcoming the scepticism, the indifference, and the hostility with which we had to struggle in the early years could probably not have been successfully performed at all without the dynamic qualities and the power of popular appeal which Albert Thomas possessed in such an eminent degree. The Opposition which had to be met and conquered came mainly from hl2L S T CeS \i / ° f l > there was the dead wei V ht of conservatism which blocks the path of ciny progressive institution. From the beginning of social of that e ZI ? improve the general lot of mankind, and particularly of that vast majority in every country who live by the work of their hands, bTforlhe'Ztfrr ° f thos \ w,w hdieve either that no change can be for the better > or that nothing can be done without disturbing fundamental f-'Ti SU -!l' attem P t has likewise encountered the indifference of what hiLent To th ,f own ° tate °f li f e and who care nothing about the hosStu Jf tl 7 0/ wor J d - E very such attempt has encountered the hostility of those who conceived their own position or interests to be threatened even by the slightest modification of the existing state of affairs. 7, j * ? ■ Vpe i °PP° slhun Me International Labour Organization has had to meet since the very beginning. Its present position and prestige to which so many tributes have been paid in the course of this debate are'the Achievement and the To't™ COnfr^- 9 th * m ' Bwt perha P s its most important achievement and the root cause of this success, lies in the gradual spread of the ZZuy° n TwLtu C wJJ° 9n l ?Ir ffoal ° f M econmm <- organization and activity. Twenty years ago that belief was not generally held. On the contrary K • commonly supposed that the improvement of living standards and of ivol king-conditions was a secondary matter which might be a by-product of rS/ ZTixrzfrr- bu i hcmu n ° t u m&ziFJ in useij. as a whole series of speeches dunng this debate have testified thnt £ efforts' Social ZJ Jill C °^ ornsen as « synthesis of social and economic yons. social and economic policy are now seen not as two contradictoru and economists ana. sociologists, but as different aspects of the same thivn—nf thl nf7ro£ 9 itlolk m Z theZTl a high i T r T J in the ladder of elation. 7t'se tZowantiZSl « "J2ar irr"rm organization has made it an object of di Lf t International exaltation of the tribe or the nation Z It Z ec ° nom * cs or P. the fashionable in recent years, in spite of the overwhelming evideme TTaTand

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figure which shows that in the modern world the national well-being is more and more conditioned by the state of the outside world. It is clear that no nation, however great, can ever achieve economic independence. Economic isolation is nowadays as chimerical a dream as political isolation, and no amount of wishful thinking or artificial barricading will make it a reality. National self-sufficiency means national sacrifices, and_ the greater the degree of its accomplishment, the greater the sacrifice of living standards involved. In Mr. Campbell's apt and arresting phrase, it is ' economic atavism.' " This is not the place to seek the explanation of this strange and disturbing paradox, but it is not the least of the International Labour Organization s achievements that it has somehow managed to survive and to flourish all the fierce passions and rivalries which unbridled and unreasoning nationalism has inevitably provoked. Of course, international thinking is difficult and uncomfortable. It compels revision of many ideas which seemed_ self-evident truths, but which were really only convenient assumptions. It is much easier _ and simpler and more satisfactory to accept without question the strictly national standpoint, to judge other countries and their behaviour in the light of national interests alone, 'to protest against the tariffs built by others to protect their wage standards, and to clamour for national tariffs to protect one's own wage standards against the competition of others. If the International Labour Organization has rendered one outstanding service, it has been to bring people together arid to help them to understand each other. Every session of the Conference contributes to breaking down prejudice and ignorance, upon which so much nationalistic thinking is unfortunately based. Every report of the Office presents the facts about the subject with which it deals, the facts fairly and impartially set forth, stripped of nationalistic glosses or deformation. " For the first time in history an international staff has been trained to look upon social and economic phenomena ivithout any national bias or predilection. That in itself is an important fact. In any case, as the result of our meetings, Conference, Governing Body, Technical Committees and Conferences, the beginnings of a real international spirit are becoming discernible which can impress a newcomer like Mr. Lowe immediately. Though many speeches in this debate were national hymns, they were none the less composed in praise of a social ideal which is more than national. Through them all is running semi-consciously or unconsciously the recognition of an international standard of social ethics, an international conscience of which this Organization is now the acknowledged embodiment. To me it is impressive to find speaker after speaker suggesting that this Organization now represents something essential in our civilization and that its decline would mean a step backward towards narrower, more barbaric conceptions of society, from which it is helping the world to emerge. That is the best proof that the Organization is becoming truly international, that it is striking its roots down into men's minds, that it is beginning to command their loyalty. " Some people have chafed at the slowness with which progress has been made. They would like to change the whole of mankind at one bound from national loyalty to world loyalty, and are often inclined to look upon international institutions as useless. I should rather believe that world loyalty can only be created by and through international institutions. One has seen so many instances of beautiful abstract notions of universality which collapsed on contact with reality because their authors had no experience of international life and were still unwittingly governed by national concepts. Loyalty to any world ideal can only be bred, out of real experience. Until it can be given a concrete setting, the notiori of a society of nations or of a world society will never be anything but a vague and pious aspiration. This Organization is translating the international idea into positive terms, and by so doing is making an international allegiance possible not as a substitute for national loyalties, but as a goal to which national effort should be directed. There will, of course, always be some who regard international institutions simply as useful pawns in the game of their national politics. There will always be others who pay lip-service to the idea of international co-operation at Geneva, but who do little or nothing to bring it home to their countrymen at home. In this respect the International Labour Organization has been fortunate. It owes a good deal of its present status to the energy and persistence with which delegates of all groups have expounded its work in their own countries and have tried to integrate it in their own national life. But to convert the world from purely nationalistic thinking to a comprehension of the international factors upon which so much of its well-being depends is as revolutionary a change as the change from the mediceval to the modern outlook. It will require not years, but generations, for its accomplishment. If lam right in discerning the first signs of that transformation as already apparent in this Organization, its progress in the two decades since its inception has indeed been significant.

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" Finallythe Organization was confronted by the immense difficulties arising out of the political and economic dislocations and disturbances which the Great War left as its baneful heritage. It has never enjoyed a period of tranquillity. It has been beset % wars and revolutions, by economic disasters and social upheavals. That, it should have survived at all in the turmoil of the post-war world is remarkable; that it should none the less have grown in strength and authority is astonishing. But, as we have been grimly reminded by the tragic pictures of China and Spain drawn by the Chinese and Spanish delegates, war and. social degradation always go hand in hand. When the fruit of maris labour is turned to purposes of destruction, his last state is worse than the first. Social legislation goes by the board, hours are lengthened, and real wages are forced down as soon as war takes control of a society. The work of the International Labour Organization cannot hope to prosper in a warlike atmosphere and might be totally ruined in the chaos which another general war would not fail to bring. It cari only by. peace. If peace cannot exist without social justice, still less can social justice exist without peace. It was therefore right that this Organization should have been conceived as part of the machinery of peace. I believe it has already made some contribution to peace, and I am sure that it is capable of making a much greater contribution in the future. Perhaps the _ principal reason for the troubles and upheaval,s which have afflicted Europe since the war was the failure to supplement a new political organization with a new economic organization of the Continent. It was apparently thought that, once the political questions were settled, the economic questions would settle themselves. Subsequent events have shown how erroneous was any_ such supposition. Social and economic dislocations have lent a bitterness to political grievances which they could not otherwise have acquired. It may be doubted, however, whether this mistake will be repeated. It has now been understood that politics cannot be divorced from economics. The problems which now make _ statesmen uneasy in their beds are not only questions of frontiers and, minorities and alliances, but also questions of currency and unemployment of raw materials, and foreign exchanges, of social security and the maintenance of living standards. These matters now figure prominently in the field of international affairs. They are not susceptible to the old diplomatic technique, but none the less they often contain the germs of stability or upheaval, within and of war or peace without. Their discussion in the non-political atmosphere of this Organization has already done something to promote greater tolerance and understanding not only between employers and workers, but also between nations. livery step which promotes the spread of social justice is a contribution direct or indirect, to the cause of peace. For that reason alone, if for none of the others I have cited, this Organization is an indispensible feature of the kind of civilization at which the world is now more and more consciously aiming I have no fears for its future, and in passing on the torch to my successor I wish him the utmost success in the great task of carrying it another stage forward along the road which will lead to still greater achievement than it has yet known." REPORT OF THE CREDENTIALS COMMITTEE. This Committee submitted two reports to the Conference. The first stated that the credentials of 156 delegates (eighty-nine Government, thirty-four employers, and fiftythree workers) had been found to be satisfactory. Only 155 were entitled to vote however, the Uruguayan employers' delegate having no vote since Uruguay had nominated only one non-Government delegate. In a second report the number of Government delegates was given as ninetv credentials from the Portuguese Government delegate having been received The Committee had also considered objections from the General-Secretary of the International Federation of Trade-unions to the credentials of the Bulgarian and Greek workers' delegates, on the alleged ground that the organizations they claimed to represent were set up and supervised by the Governments, and from the Estonian Union of Building and limber Workers and the Estonian Union of Textile Workers to the credentials of the Estonian workers' delegate. This last objection was withdrawn by the workers' member of the Committee m view of explanations furnished by the Estonian Government representative m 1937 but he maintained his personal reservations. The other two objections were held by the Committee to be " devoid of substance." The Committee reported that the workers' member had drawn attention to the fact that the Government of Uruguay had not nominated a workers' delegate, although he had been informed that the workers' organizations had submitted proposals for this purpose to the Uruguayan Government. In his statement to the Conference the Chairman urged the desirability of sending full delegations to the Conference. Both reports were adopted by the Conference.

3—A. 7.

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REPORT OF RESOLUTIONS COMMITTEE. This Committee reported on Resolutions submitted to the Conference in accordance with paragraph 7 of Article 12 of the Standing Orders. These Resolutions had )tt.n examined by the Committee, and with one exception they were adopted by the Conference in the form in which the Committee presented them. The exception was a resolution submitted by Mr. Alamo Ibarra, Venezuelan Government delegate, as follows:— " Draft Resolution concerning systems of compulsory savings, submitted by Mr. Alamo Ibarra, Venezuelan Government delegate." It met with considerable opposition from workers' delegates, and was withdrawn. REPORT OF COMMITTEE ON STANDING ORDERS OF CONFERENCE. This Committee presented two reports to the Conference after holding eight meetings. The question before the Committee was whether any deviation should be made, by definite provision in the Standing Orders, from the double-discussion procedure, and, it so, what form the provision should take. The present system makes provision only lor one single system —namely, the double-discussion procedure. "When, in the past, decisions had been taken by the Conference to deal with a question by a single discussion, it had been compelled to suspend its Standing Orders. To obviate this necessity the Governing Body felt it necessary to introduce a certain diversity in procedure so that _ each question could be treated by the most suitable method, and to this end the Governing Body had prepared an amendment of the Standing Orders which provided for the possibility of Dratt Conventions and Recommendations being considered either under a smgle-discussion procedure with or without a preparatory technical conference or under a double-discussion procedure. By fifteen votes to nil the Committee decided that the Standing Orders should provide for a' single-discussion procedure, and by twenty votes to nil for a double-discussion procedure also. By fourteen votes to eleven the Committee further decided that there might be a procedure consisting of a preparatory technical conference followed by a discussion at an ordinary session of the Conference. After considerable debate agreement was reached on a proposed new Article 6 of the Standing Orders. The new Article provides that a questionnaire will be submitted to Governments before, rather than .after, the first debate in Conference, so that the Conference will be able to conduct its debate in the light of Government replies. It also provides that after the close of the first session of the Conference there will be submitted to the Governments not a mere list ol points, but the actual text of a proposed Convention or Recommendation. The matter is of some importance to New Zealand on account of the distance from the International Labour Office and the difficulty of ensuring that sufficient time is allowed for the question to be examined before it is submitted to the Conference. The necessity for more time being allowed to enable New Zealand delegations to examine the subjects before leaving New Zealand was stressed by the New Zealand Government delegate before the Committee. On this report being presented to Conference, the Swiss employers' delegate moved an amendment, the effect of which was to insist on double discussion. This was opposed by both employers' and workers' delegates, and defeated by sixty-seven votes to fourteen. Conference then adopted the report. REPORT OF COMMITTEE ON THE APPLICATION OF CONVENTIONS. In its report the Committee stated that the number of reports on the applications of Conventions due from the Governments in 1937-38 was 702, as against 662 in the previous year. By the date these reports should have been in the hands of the Committee of Experts for examination, as provided by the Constitution of the International Labour Organization (Article 22), 580 had been received. Of the 122 reports missing, 17 were in respect of Conventions ratified by Germany, 20 by Italy, and 30 by Nicaragua, three States that have withdrawn from the International Labour Organization. Of the remaining 55, only one had failed to reach the Office subsequent to the final date fixed for their reception. The Committee expressed the hope that in future Governments concerned will not only submit their reports by the prescribed date, but will furnish an accurate picture of the real situation as regards the application of these Conventions. It also felt " obliged to remind the Governments concerned that by ratifying a Convention they formally bind themselves to apply it." Conventions must be regarded as imposing specific obligations, and not mere programmes of future reform on the contracting party. The Committee added: " The contrary view is calculated to shake confidence in international agreements in general, and in particular to discourage collaboration in the work of the International Labour Organization on the part of countries which interpret their international obligations with the greatest strictness." It stated, however, that " the great majority of the Governments had endeavoured to fulfil their obligations loyally. The

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Committee approved of a proposal that an independent and efficient inspectorate was the best means of ensuring the complete and regular enforcement of international labour legislation, and consequently of the ratified Conventions. It hoped that the adoption of an international Convention on these lines would be possible. Further, the Committee expressed its satisfaction with the increasing application of international labour legislation in the colonies, possessions, protectorates, and territories under mandate. When the report was submitted to Conference the spokesman for the Committee said that, while Conventions ratified were in some cases not applied as they should be, some improvement could be noted. It was particularly noticeable in the countries of Latin America, To avoid gaps in the applications of Conventions—of the 3,000 possible ratifications, only 814 had actually been registered—he urged emphasis on the responsibilities of Governments not only in the ratification of Conventions, but in preparatory work with respect to them. After some discussion the report was adopted. TECHNICAL AND VOCATIONAL EDUCATION AND APPRENTICESHIP. The Committee appointed to consider this subject had the assistance of a representative of the International Bureau of Technical Education. The considerable interest that was evidenced in its deliberations was indicative of a realization on the part of those present of the importance of the subject, Developments of this subject had become widespread, as indicated by the reports received from the Governments, and it was generally conceded that whatever may be the economic conditions prevailing in the various countries the question of vocational training of skilled workers is of immediate importance. Draft matter and a report prepared by the International Labour Office formed the basis of discussion, and a comparison of the report with the conclusions reached will indicate that the Committee's examination was a thorough one. The general discussion in committee disclosed that employers and workers, as well as Governments, were greatly interested at the present time in the question of vocational education. Several speakers emphasized in particular the necessity for co-operation between the various bodies interested in vocational education for the purpose of co-ordinating their diverse efforts and of formidating a policy which would be in accordance with the interests of the worker as well as the requirements of industry and of the national economy. Another point to which some of the speakers drew attention, and supported by the New Zealand delegate, was the desirability of avoiding premature specialization in the case of young workers, and of scope for greater adaptation on the part of skilled workers who belonged to particular industries or were engaged in technical processes which were constantly changing. Finally, the importance of supplementary school education was pointed out, as well as the need for providing workers admitted into employment before they had received any kind of training with facilities for vocational education. On behalf of the employers it was urged that the realities of the situation should not be lost sight of, and that the risk of undermining the results of private initiative by a too strict supervision on the part of the State should be avoided. It was considered by many of the speakers that the problem of apprenticeship was the principal one that the Conference was called upon to consider. Whilst, however, apprenticeship was at the root of the matter, it had to be considered as part of the general question of technical education, the whole object of which was to prepare for apprenticeship, to increase its effectiveness, and to complete it or to provide a substitute for it. Some of the speakers called attention to the importance of vocational guidance as a means of rendering vocational training effective, and regretted that the problem was not included in the scope of the question on the agenda. The Committee submitted a Draft Resolution to the Conference requesting the Governing Body to consider the desirability of placing the question of vocational guidance on the agenda of a very early session of the Conference, this being adopted. Over fifty amendments to the draft proposals were moved in Committee. Most of these were for the better working of the proposals. A final draft report was agreed to and submitted to the Conference. On the report being discussed in Conference the Preamble and Parts I to 111 of the Draft Conclusions were adopted seriatim. On Part IV a show of hands was demanded, and on the vote being taken 51 were in favour and 22 against. As the total votes cast were less than the quorum, 78 (the total number of delegates at the Conference being 157), the President decided to take a record vote, and Part IV was adopted. Part V was adopted. REGULATION OF CONTRACTS OF EMPLOYMENT OF INDIGENOUS WORKERS. This Committee held ten meetings. It took as the basis of discussion a list of suggested points drawn up> by the International Labour Organization for the Consultation of Governments, also recommendations by a Committee of experts on Native labour. In general terms the Committee had to decide on a report affecting the working and living conditions, hours of work, rest-days and holidays, wages, workers' compensation for accidents and occupational diseases, and medical assistance for " indigenous workers" who are, " primarily the workers employed in tropical and sub-tropical territories by agricultural and

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industrial undertakings which are owned and managed by Europeans." The Committees report included Draft Conclusions containing fifty-three provisions. With few exceptions these provisions were adopted in the Committee by unanimous votes or by votes in which the minority was very small. To safeguard their responsibilities to the employers whom they represented the employers' representatives voted against the whole list of provisions at the end of the discussion, these being carried by thirteen votes to nine in the Committee. They stated that if and when a Draft Convention came before the Conference they would reconsider their attitude. The report and Draft Conclusions were unanimously adopted by the Committee and submitted to the Conference. RECRUITING, PLACING, AND CONDITIONS OF LABOUR (EQUALITY OF TREATMENT) OF MIGRANT WORKERS. Following the usual procedure, a Committee examined this subject and reported to the Conference. It held eight sittings, and took as the basis of its discussion the report prepared for the consultation of Governments by the International Labour Office. Proceedings in respect of this subject were without opposition either in Committee or in Conference, there being a unanimous vote of Conference placing the subject on the agenda of the 1939 session. A resolution was also adopted by the Conference requesting the Governing Body of the International Labour Office to consider reviewing the question of the simplification of the formalities to be fulfilled and documents to be completed by migrant workers. REGULATION OF HOURS OF WORK AND REST PERIODS OF PROFESSIONAL DRIVERS (AND THEIR ASSISTANTS) OF VEHICLES ENGAGED IN ROAD TRANSPORT. In the Committee's report to Conference it was stated that, despite the great diversity of the problems associated with transport, large majorities had been given by its members for its proposals. Its report had been adopted by thirty-seven votes to ten, and its Draft Conclusions by thirty-six to ten. On the consideration of the Committee's report in Conference, M. Delepeleire, Belgium employers' adviser, speaking for the employers' group, announced that it could not collaborate with the Committee on a reduction of working-hours question, and that it would vote against the adoption of the report and against placing the question on the agenda for the next Conference. He moved an amendment to the Draft Conclusions the substance of which denied the competence of the International Labour Organization to apply regulations to drivers who own their own vehicles, these drivers being owners as distinct from wage-earners. In the discussion it was pointed out that in the Committee the only supports of the amendment were the employers' members. It was also argued that, as the employers in negotiations for improved conditions for transport workers usually contended that any new demand was impossible because of unfair and unreasonable competition from owner-drivers and members of their families who were subject to no regulations, they should take a view consistent with this in the Conference. The amendment was rejected by sixty-two votes to twenty-one on a show of hands. All the points in the Committee's Draft Conclusions were then adopted seriatim, and the report was adopted as a whole. GENERALISATION OF THE REDUCTION OF WORKING-HOURS. The generalization of the reduction of working-hours was placed on the agenda of the 1938 Conference, as a result of the adoption by the 1937 Conference of a workers' group motion deploring the slow rate of progress made towards the international regulation for the reduction of the hours of work. A report in five volumes, submitted by the International Labour Office, was taken as the basis of the Committee's discussion, with the object of determining the list of points on which the Governments were to be consulted. At the Committee's second meeting the employers' group urged that the Committee should proceed first by a general discussion on the reduction of working-hours. The workers' group objected to a general discussion, as being superfluous, seeing that in 1935 the Conference had adopted a forty-hour week Convention in principle and in 1936 and 1937 Conventions applying the principle to separate industries and stated that the only matter the Committee should consider was whether a single Draft Convention covering all economic activities or, on the contrary, whether several Draft Conventions should be aimed at. As a result of this difference of opinion the discussions in the Committee, which continued for the whole of two lengthy sittings and a part of a third, proceeded in such a manner as enabled all members to express views on every aspect of the question, a summary of the attitude taken by each of the three groups being embodied in the Committee's report to the Conference. A Draft Resolution on the reduction of hours of work in coal-mines was adopted by seventy-three votes to thirty-six.

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By seventy-eight votes to forty-two a Draft Resolution on the reduction of hours of work m transport was adopted. The Committee also decided, by seventy-five votes to forty-eight, to recommend that the question ot the generalization of the reduction of hours of work in industry, commerce, and offices should be placed on the agenda of the next Conference. hen the Committee s report was presented to the Conference for consideration, a debate occurred which lasted for several hours on 20th and 21st June. The Committee's Draft Conclusions were then adopted, on a show of hands, by seventy-nine votes to twenty-six. STATISTICS OF HOURS AND WAGES IN THE PRINCIPAL MINING AND MANUFACTURING INDUSTRIES, INCLUDING BUILDING AND CONSTRUCTION, AND IN AGRICULTURE. Proposals for a Draft Convention 011 this subject had been drawn up by a Technical Conference of Official Labour Statisticians that met in September, 1937. Opposition to the adoption of the single-discussion procedure was voiced by the representative of the Government of India, the representative of the Government of Japan associating himself with this view. The Committee, however, recommended the single and final discussion, the employers representatives abstaining from voting. The text of the Draft Convention as submitted by the Drafting Committee was unanimously adopted by the Conference (125 votes cast). , . the first Convention adopted by the International Labour Organization on this subject, and it was adopted by the Conference without opposition there should be no bar to its ratification by most of the countries. The information thus supplied to the International Labour Organization will provide valuable and useful statistical data to enable a precise estimation of workers' conditions in each country. Arising out of the Committee's deliberations, Resolutions as follows were placed before the Conference, these being adopted:— (1) Statistics _ of Wages and Hours of Work in Agriculture.—Requesting the Governing Body of the International Labour Office to consider the advisability of convening at an early date a special technical conference to examine the methods of compiling statistics of the remuneration and hours ot work of persons employed in agriculture, with a view to the improvement and amplification of the statistics to be compiled in pursuance of the Convention. (2) Statistics of Real Wages.—Urging the International Labour Office to encourage the compilation and publication of the statistical data required for international comparisons of real wages, and to continue and extend its studies on this subject. (3) Supplementary Statistics of Wages and Hours of Work --Requesting the Governing Body to arrange for the examination and communication to Governments of proposals for statistics of average and yearly earnings, also hours actually worked. MISCELLANEOUS RESOLUTIONS. 1 Re^ ues „ tti g the Governing Body, when convening International Labour Conferences and other Conferences of the International Labour Organization, to endeavour to take a w-Ti° f r ® llg r is and natl n °nal festivals which are generally recognized in the countries in which these Conferences are held. . Inciting all members of the International Labour Organization to apply the principle of equality of treatment to all workers resident in their territory and to renounce all measures _ of exception which might in particular establish discrimination against workers belonging to certain races or confessions with regard to their admission to public or private posts. s (3) Requesting the Governing Body to consider the desirability of (а) Instructing the International Labour Office at the earliest possible date to organize a world-wide inquiry into the standard of living and conditions of employment of the workers engaged in the production of timber as a raw material: (б) Taking steps which may lead to an improvement in the situation of forestry workers if possible, m the form of Conventions and especially m regard to the questions of housing, the accommodation and maintenance given at the work-place, general hygiene, occupational diseases, accident prevention, and the truck system, and also in regard to general questions of wages and hours of work: & (c) Setting up a permanent joint Committee on questions concerning forestry workers, which should consist of representatives of the three groups of the Governing Body, together with representatives of the international bodies concerned and other experts, and should act in an advisory capacity when the International Labour Organization treats any of these questions.

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(4) Requesting the Governing Body to consider the desirability of Pacing on the agenda of an early session of the Conference the question ot the fixing of the maximum weight of loads, packages, and sacks to be transported by workers. _ • t t - ~ (5) Requesting the Governing Body to consider the desirability ot instruct g the International Labour Office to make a special study of the indemnities due to workers in case of dismissal, with a view to placing it on the agenda of an early session of the International Labour Conference. . , - (6) Inviting the Governing Body of the International Labour Office to examine the nossibilitv of taking the necessary measures to convene m 1909 a second Regional Conference of the American States which are members of the International Labour resolution concerning systems of compulsory savings was withdrawn. RECORD VOTES. Record votes of delegates to the Conference were taken on the Draft Convention and Draft Conclusions recommended by the various Committees appointed to report on the tliese vo tes, together with the votes cast by the New Zealand delegates, are given as follows: — . 7 7 « 7 On the Draft Convention concerning statistics o/ wages and hours oj work in the principal mining and manufacturing industries, including building and construction, and in agriculture —For, 125; against, 0. New Zealand Delegation—For: Mr. Thorn (G.) : Mr. Moston (G.) ; Mr. Camp (,L.) ; Cook f"W ) • The quorum and the two-thirds majority having been obtained, the Draft Convention * On the placing on the agenda of the 1939 session of the Conference of the question of the regulation of contracts of employment of indigenous workers— For, 100; against, 24. , . New Zealand Delegation—For: Mr. Thorn (G.) ; Mr. Moston (G.) ; Mr. Cook (W ). On the placing on the agenda of the next session of the Conference of the question of the recruiting, placing, and conditions of labour (equality of treatment) of migrant workers —For, 126; against, 0. New Zealand Delegation—For: Mr. Thorn (G.) ; Mr. Moston (G.) ; Mr. Camp (E.) ; Mr. Cook Draft Conclusions on technical and vocational education and apprenticeship—For, 105; against, 29. New Zealand Delegation—For: Mr. Thorn (G.) ; Mr. Moston (G.) ; Mr. Oook (W.). Against: Mr. Camp (E.). , On the placing on the agenda of the 1939 session of the Conference of the question of the regulation of hours of work and rest periods of professional drivers (and their assistants) of vehicles engaged in road transport—For, 96; 2V. New Zealand Delegation—For: Mr. Thorn (G.) ; Mr. Moston (G.) ; Mr. Cook (W.). Against: Mr. Camp (E.). . . ~ ~ ... ... ~ On the placing on the agenda of the 1939 session of the Conference_ of the question of the reduction of the hours of work in coal-mines—For, 82; against, 29. New Zealand Delegation—For: Mr. Thorn (G.) ; Mr. Moston (G) ; Mr. Cook (W.). Against: Mr. Camp (E.). . . On the Draft Resolution on the reduction of hours oj work in transport, submitted by the Committee on Hours of Work —For, 93; Against, 28. New Zealand Delegation—For: Mr. Thorn (G.) ; Mr. Moston (G.) ; Mr. Cook (A\.). Against: Mr. Camp (E.). . On the placing on the agenda of the 1939 session of the Conference on the question of the generalization of the reduction of the hours of work For, 92; against, 27. , New Zealand Delegation—For: Mr. Thorn (G.) ; Mr. Moston (G.) ; Mr. Cook (W.). Against: Mr. Camp (E.). SUMMARY OF MATTERS OF INTEREST REFERRED TO DURING DISCUSSION ON THE REPORT OF THE DIRECTOR. Brazil (Government Delegate, Mr. Saraiva). —Social legislation has been extended during the preceding year. Hours of work have been limited to eight per day in industry, provision is made for a weekly rest, together with paid holidays. Employment of young persons under fourteen years is prohibited, as also is the employment of workers under the ao-e of sixteen years on night-work and those under eighteen years and women m unhealthy occupations Councils of Conciliation and Arbitration have been established, and it is proposed to introduce Labour Courts to deal with industrial matters. The benefits of social insurance now extend to almost every worker in industry and the Public Service.

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An Act to provide compensation in the event of accident or occupational disease has been extended to all classes of workers, and the benefits increased. A housing scheme for porkers has recently been put into operation, and technical and occupational education has been accelerated by erection of additional institutions for the teaching of these subjects. A proposal is at present under consideration for the introduction of an institute lor vocational guidance. Unemployment is practically non-existent in the country. Egypt. The Egyptian Government have recently undertaken a house-building scheme to provide workers dwellings, and legislative measures have been introduced restricting the hours of work in the cotton-ginning industry, which have now been reduced to nine hours per day and five hours consecutively. This industry has also been included in the list of unhealthy and dangerous industries. The recent visit of the Director of the International Labour Office has inspired the Government to a live interest in matters touching on social and industrial reform. Yugoslavia.—The year 1937 has witnessed a return to prosperity, and the Government of this country have recently embarked 011 a programme of increased activity on public works and social reforms which, with the added increase in foreign trade, has resulted in higher wages to the workers and the spreading of the benefits of prosperity throughout the country. A system of invalidity and old-age insurance, together with a special insurance scheme for private employees, has also been introduced during 1937. Norway.—-Tv/o of the Draft Conventions adopted by the Maritime Conference have been ratified, and a Bill has been introduced extending the benefits of the eight-hour day already operating in respect of the large majority of other employees—to seamen 1 . A committee to study labour conditions in agriculture has been set up, with a view to preparing complete agricultural-labour legislation. Legislative measures have been taken to fix the minimum age for entry of children into industry; and a project is in hand to institute a complete system of unemployment insurance. Cuba—During the past year the Cuban Government have introduced a comprehensive system of insurance covering unemployment, old age, sickness, invalidity, and death The workers compensation scheme previously in operation lias been amended and the benefits considerably improved. An Act has recently been passed affecting practically the whole field of labour relationships, including hours of work, wages, termination of contracts, apprenticeship &e. Overtime payment has been introduced, with a view to restricting hours of employment m industry. Sickness to workers is provided for to the extent of nine days annually on tuli pay. No deductions from wages are permitted; and steps have been taken to regulate the employment of young persons. Rumania.—lt.is the intention in this country shortly to segregate the Ministry of Labour from the Departments of Health and Relief to allow for a more intensive application to the development of working-class legislation and labour problems. Progress has been most marked m this country of recent years in the advance of legislation for" the regulation and protection of working-conditions, and second offences against the Acts providing for the weekly rest, the protection of women and children, or the life and health of the workers are now punishable under the new penal code. Conditions of emplovment jurisdiction m labour disputes, and social insurance for agricultural workers, who comprise the majority of the population, are at present the subject of study by the Ministry of Wl T' .with a view to early legislative action. The application and enforcement of industrial legislation devolves upon sixteen Chambers of Labour set up throughout the country. _ Labour Courts and Arbitration Committees, instituted of recent vears, are proving effective m the settlement of industrial disputes. Fee-charging employment agencies have been abolished, the responsibility of placing persons in employment being accepted by the state, and thirty-five offices have been set up throughout the country to this end Notwithstanding that unemployment is practically unknown,' these offices assume the placing of such as semi-mvalids, orphans, widows, &c. Technical education and apprenticeship have recently been the subject of serious consideration by the Government and three Acts have been put into operation covering this sphere, for which a special Labour Fund has been created. The field of social insurance has been widened, the total of insured persons reaching one million, of which numbers have received free medical aid and hospital treatment, the funds for which are provided on an equal contributory basis Scheme emp ee ' A § Tl( -' u]tu ral workers, however, do not as yet receive benefits China. During the first half of 1937 China made an appreciable recovery in industry tra m' ,• +! assi . stanc e of the undertaking of large-scale public works, alone lesponsible for the absorption of approximately two million unemployed workers However the progress so shown has not been maintained, and has been seriously retarded owing to the destruction of factories and towns by the ravages of war in the country Afghanistan,—The Government of Afghanistan has devoted itself, energetically, during the past year to a programme of agricultural reform, the cultivation of cotton fige-scalf public works, and the development of the mineral resources of the JunSy wth the result that unemployment is practically unknown in this country With the institution of a Department of Agriculture charged with the development of' agricultural production and the welfare of the workers so employed, much improvement in this field

23

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has been effected. Increased activity is apparent in the textile industry, and mim g concessions granted to foreign countries have also assisted in the measure o± prosperi > attained. The execution of the social and economic plan by the Government nas also widened the scope for the employment of workers. T 4l , Japan.—A new Ministry of Welfare has been established m Japan the functions ol which are labour legislation, social work, public health, and the general uplifting ole physical conditions of the people. A national health insurance covers not only the industria wage-earners, but also owners of small undertakings, and peasants, and embraces a _ e types of workers. A Shop Act has been introduced, and various other enactments touching on social legislation have been promulgated. . . , . Canada.—Canada has further extended legislation for the protection of workers m their right of association in unions, for the encouragement of collective agreements, the Ration of minimum wages, training of unemployed young workers, and the care ot those amictea by lack of remunerative employment. A national Employment Commission has recen y submitted a report on the various aspects of unemployment, together with sugge,> ec remedial measures to cope with the position. _ r , ■ n + Estonia.—A Chamber of Labour has recently been set up by the Estonian Government, and considerable labour reforms have been introduced, such as improvement ot conditions of labour of persons employed under contracts of service, which must now 1 educed o writing; night-work in bakeries is prohibited; the hours of work of shop-assistants ave been reduced and overtime restricted, with the provision of a weekly rest ot twenty-tour Jiours to all employees in industry. A system of paid annual holidays has been introduce , with a minimum of fourteen days annually. Compensation is now also paya,b e o agricultural workers, together with free medical assistance and drugs. It is also propose to introduce legislation extending sickness and invalidity insurance to all wage-earneis. Peru.—Peru is enjoying a period of marked prosperity, due largely to the extended development of the mineral and agricultural resources of the country, allied to an increase in foreign trade and a programme of necessary public works. A complete labour code now operates throughout the country governing conditions of labour m practically every branch of industry. A compulsory insurance scheme covers maternity, invalidity, and old age for the benefit of workers in industry, commerce, and agriculture. . Uruguay.—Much has been accomplished by the Uruguayan Government during recent years in the field of social and labour legislation. The building of cheap houses is being undertaken, legislative measures have been introduced covering such matters as hygiene in factories, industries, agriculture, and commerce. The problem of scientific nutri ion 01 the people has been taken up, and to this end some fifty-five thousand restaurants have been opened by the Government, operating under a special institute of scientific nutrition, tor the provision of balanced meals at low cost. In addition, municipal centres tor the sac and distribution of meat and milk at reasonable prices are also being set up. the employment of women in industry is prohibited between the hours of .) p.m. and b a.m., and it is proposed to introduce legislation shortly allowing for State intervention m the conclusion of contracts between the employer and employed. Hungary.—ln Hungary the eight-hour day has been introduced, with a maximum weekly total of forty-eight, hours to all workers. Minimum wages have been established in several industries affecting 51 per cent, of all industrial workers. Although a system of paid holidays was previously in vogue, legislative action has recently been taken in this direction to increase the benefits, and additional paid holidays are now gran ,ec according to length of service. The subdivision of large estates into small _ agricultural holdings has recently been undertaken, and provision is made for old-age insurance to agricultural workers. Luxemburg.—Luxemburg was represented at the Conference tor the first time, and has passed considerable social legislation during the past twelve months, following on the visit of an official of the International Labour Office. . , , , , . Ecuador. —Ecuador, according to the Government delegate, is somewhat backward m social legislation, owing to the fact that the large majority of the workers of that country are emploved in agriculture and are of an indigenous type. Up to date it has not been possible to legislate for this type of worker, but steps are being taken to follow the lead ot more advanced countries in industrial legislation, and already an improvement has been Great Britain,—Great Britain reports the adoption of a new Factory Act for improved provision for safety, health, and welfare in factories and the further limitation of the hours of work for women and juveniles. An Act has been passed dealing with night baking; and unemployment insurance has been extended to a further million workers, including agricultural workers, bringing the total of those so insured to fifteen million. Steps are being taken to ensure adequate wages to employees m transport industries; and measures are being introduced to facilitate holidays with pay, together with the improvement of wages and conditions, to employees in the coal industry. . Switzerland. —Switzerland! according to the Government delegate, is suffering to some extent from an economic depression; but he asserted that the country was at industrial peace, due to a large extent to the conditions of employment, the efforts made by the Government to deal with unemployment, and to the conciliatory spirit adopted by both employer and employed in negotiating voluntary agreements.

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America,. The policy of the reduction of hours, stated the Government delegate, had to some extent resulted in the absorption of unemployed in industry; and legislation has been introduced prohibiting the employment of juveniles under fifteen years in industry, and m some industries those under sixteen years of age. Venezuela. Venezuela is considerably advanced in social and industrial legislation. A draft labour code has been drawn up for the purpose of establishing a complete system ot labour legislation. Provision is made for contracts of apprenticeship, maximum hours, and special conditions of employment for those engaged in transport, conditions of work on ships, sharing of workers in profits according to length of service. A national Employment Exchange set up in 1937 has now been extended to seven branches. A workers bank has been established, supplied with funds from the Treasury, to assist workers in the erection of houses. Labour Inspectors also supervise the living-conditions m petroleum undertakings. . Argentine.—Argentine, under the present Government, is adopting a programme of social reform, and provision is being made for legislation dealing with hours of work, wages and salaries, reduction of the price of foodstuffs, public works in the field of sanitation, and assistance to children under school age. Iran. The State has set up model farms, complete with modern machinery, and imports blood stock for the purpose of raising the standard of stock and for the distribution to farmers. Peasant farmers have been taught intensive culture in the methods of farming, and a general effort has been made to improve the standards of agricultural production and methods. A system of slum clearance is being undertaken, and the State is rebuilding workers' homes in replacement. New crops have been introduced, with a view to increasing primary production; and in the industrial field the State has taken its share in the construction and financing of factories and has given assistance in the creation of new markets. The construction of the trans-Iranian Railway, undertaken by the State, is now nearing completion. Iraq.—Legislation passed by the present Government of Iraq covers hours of work in industrial undertakings, weekly and annual holidays with pay, and provision for safeguarding the health and welfare of the workers. The problem of scientific nutrition is being investigated, as also are conditions of employment in the date-picking industry. Inspections of industrial undertakings are made by governmental officers acting in co-operation with State medical officers. Ireland.—Conditions of employment of shop-assistants and industrial workers have been materially improved as a result of recent legislative action, which has resulted in the application of the forty-eight-hour week to both types of workers, with paid holidays. Turkey.—This country adopted a five-year plan in 1934 for the organization and development of agriculture, industry, means of communication, and electricity, with a view to improving the social position of the people, which has resulted in increased employment and development of both internal and external trade. The entry of the State in large-scale industrial undertakings, it is stated, has not hampered private initiative in industry of substantial financial resources. The organization of agriculture, on which is dependent approximately 70 per cent, of the population for subsistence, has been carried out on scientific lines; with the completion of plans on irrigation, land-development, and reafforestation, greatly increased production in this field is expected. There is practically no unemployment in the country at present. It is the intention of the Government shortly to introduce social legislation bearing on the protection and health of workers, conciliation in labour disputes, factory inspection, social insurance, &c.; and the forty-eight-hour week has been adopted. POOLING OF EXPENSES. As previously referred to in this report, page 4, the question of full and proper representation by each country at the Conference is a problem that is frequently mentioned, but up to the present a solution has not been found. The matter is largely one of finance for distant and smaller countries. Pooling of expenses of delegates, both to the Annual Assembly of the League of Nations and the International Labour Conference was raised by the Norwegian delegate in the Fourth (Budget) Committee of the League Assembly in September, 1929, when, after a brief discussion, it was resolved to suspend all decision until a definite proposal had been made by a Government. In January, 1932, extra European members of the Governing Body of the International Labour Organization held an informal discussion on the means of securing increased participation of extra European countries in the work of the Organization. Among the suggestions made to this end was one to the effect that possible systems of pooling of expenses of delegates to the International Labour Conference should be examined. Subsequently, as a result of the above discussion, the Governing Body at its sixty-first session, February, 1933, appointed a Committee to examine, with a view to the formulation of practical proposals, the means of securing increased participation of State members in the work of the Organization, with special reference to the question of regular and complete representation at the sessions of the International Labour Conference.

4—A. 7,

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The Committee met at Geneva in June, 1933. In a note submitted to the Committee the International Labour Office dealt, inter alia, with the question of pooling o± expenses The Office indicated that if the travelling-expenses both of Assembly delegates and ol Conference delegates were pooled in the manner suggested there would be an increase in the general budget of the League of approximately 1,000,000 francs (430,000 francs for the budget of the Secretariat and 570,000 francs for the budget of the Internatio:nalLabour Organization). It also suggested that, if it were felt that it would be difficu t u the existing financial circumstances to recommend a system of pooling ol expenses, _ wmcn would result in an addition of so much as 570,000 francs to the budget of the Organization, the possibility might be considered of reducing the increase to half of the above ligure bv limiting the application of the proposed new system to the non-Government delegates. The conclusion of the Office was that the Committee, having decided whether it would be preferable to consider the pooling of expenses in relation to all delegates or to non-Govemment delegates only, should make a definite recommendation on the subject. The Committee finally decided to recommend the Governing Body " to ask the Assembly of the League of Nations to study the possibility of adopting an arrangement whereby the travelling-expenses of delegates to the Conference could be distributed more evenly between all the State members of the Organization." At its sixty-third session m June, 1933, the Governing Body adopted this Recommendation. The question was accordingly submitted to the Supervisory Commission at its meeting in October, 1933. The Commission asked for reports to be submitted to it by the Secretariat of the League and by the International Labour Office showing the amount which would have to be included in the budget to provide for the expenses of delegates both at the Assembly and the International Labour Conference. The report submitted by the Secretariat estimated the cost of both travelling and subsistence allowances for three delegates to the Assembly from each State member of the League at 381,672 Swiss francs —viz., approximately £19,084. The report submitted by the International Labour Office considered the following two possible methods of sharing expenses:— (а) Inclusion in the budget of the Organization of both travelling-expenses and subsistence allowances of a complete delegation (four members) from each State member of the Organization. Estimated cost: 596,300 Swiss francs — viz., approximately £29,815. (б) Inclusion in the budget of the Organization of travelling-expenses (excluding subsistence allowances) of a complete delegation (four members) from each State member of the Organization. Estimated cost: 489,740 Swiss francs — viz., £24,487. The Commission examined the above two notes at its session in April, 1934, and came to the following conclusions: — Any measure which might be adopted in favour of the International Labour Organization should naturally be automatically extended to the delegations sent to the Assembly. It is calculated that the expenses resulting from such a measure may be estimated at 900,000 francs for the two organizations (a little more than half for the International Labour Organization, the delegations to which consist of four members, while the delegations to the Assembly consist of only three titular delegates). The Commission does not think that present circumstances make it desirable to add so heavy a burden to the League's budget. The above report of the Supervisory Commission was considered by the Fourth Committee of the Assembly of the League of Nations in September, 1934. The Committee was of opinion that in the present circumstances it would be inadvisable to ask State members to increase their contributions to the budget of the League, the report of the Committee to this effect being approved by the Assembly. This matter is one of great concern not only to distant countries on account of the much greater expense involved in sending a full delegation, but also, as the Director mentions in his report, the centre of gravity of economic power is gradually shifting. The concentration of industrial production in Europe is now a thing of the past. The industrial development that has taken place in recent years in South America, Asia, Australasia, and extra European countries illustrates the need for a new orientation if these countries are to take a full share in the aims and objects of the Organization. The question is one that cannot be allowed to drift in the background, and further efforts should be made to find a solution. RATIFICATIONS. On 15th March, 1938, the date at which the annual stock-taking is made, there were forty-three ratifications registered for the year 1937-38, as compared with fifty in the two previous years. This figure indicates that the general average is being maintained. The above figure does not include twenty-two ratifications by the New Zealand Government—■

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the instruments of ratification were not received in time for them to be included in the record of the past year. The forty-three ratifications registered during the year were well distributed, as they related to twenty-seven Conventions and came from fifteen countries—twenty-eight were European, fourteen American, and one Asiatic, A table showing the progress of ratifications is appended herewith. In conclusion, we desire to thank the Government for appointing us as representatives at the Conference; also our thanks are due to the High Commissioner, London, for assistance readily given by himself and members of the staff. We also wish to record appreciation of the services of Miss J. McKenzie, of the High Commissioner's Office, who acted as secretary to the delegation.

DETAILS OF REPRESENTATIONS AT THE 1938 CONFERENCE.

27

I '• Government Government Employers' Employers' Workers' Workers' Delegates. Advisers. Delegates. Advisers. Delegates. Advisers. Afghanistan . . . . 2 Albania .. .. .. 1 United States of America 2 7 1 2 1 6 Argentine Republic .... 2 1 1 .. 1 2 Australia .. .. .. I .. 1 .. 1 Belgium .. .. .. 2 3 1 5 1 5 Bolivia .. .. .. 1 Brazil .. .. .. 2 5 1 1 1 1 British Empire .... 2 10 1 10 1 10 Bulgaria .. .. .. 2 2 1 .. 1 Canada .. .. .. 2 5 1 ] 1 ] Chile .. .. .. 2 China .. .. .. 2 2 1 4 1 2 Colombia .. .. . . 2 2 Cuba .. .. .. 2 1 1 .. 1 Czechoslovakia .... 2 2 1 3 1 5 Denmark .. .... 2 3 1 1 1 2 Ecuador . . .. . . 2 Egypt . . .. . . 2 3 Estonia . . . . . . 2 1 1 .. 1 Finland ...... 2 3 1 1 1 1 France . . .. .. 2 19 1 6 1 7 Greece, .. . . . . 2 2 1 .. 1 2 Hungary .. .. .. 2 2 1 .. 1 1 India ...... 2 2 1 1 1 1 Iran . . .. .. 2 1 Iraq . . .. .. 2 Ireland .. .. .. 2 1 1 1 1 1 Japan .. . . . . 1 2 Latvia .. .. .. 2 1 1 1 1 1 Lithuania . . . . .. 1 Luxemburg ..... 2 1 1 I 1 1 Mexico .. .. .. 2 2 1 .. 1 3 Netherlands .... 2 4 1 2 1 3 New Zealand .. .. 2 .. 1 .. 1 Norway .. .. .. 2 5 1 2 1 3 Panama . . .. . . 1 Peru . . .. . . 2 1 Poland .. .. .. 2 5 1 2 1 3 Portugal .. . . . . 1 Rumania . . .. . . 2 1 1 2 1 1 Siam . . . . . . 1 Spain .. .. .. 2 4 1 2 1 4 Union of South Africa 2 2 1 1 1 1 Sweden .. .. .. 2 2 1 4 1 4 Switzerland .... 2 5 1 5 1 5 Turkey . . . . . . 1 1 Uruguay .. . . . . 1 .. 1 Venezuela . . .. . . 2 .. 1 . . 1 Yugoslavia .... 2 6 1 2 1 2 Totals .. .. 90 119 34 60 33 78

The Progress of Ratifications

A.—?.

REPORT AND RECOMMENDATIONS BY ARTHUR COOK, NEW ZEALAND WORKERS' DELEGATE. As the New Zealand workers' representative, I have the honour to submit herewith my report on the proceedings of the twenty-fourth session of the International Labour Conference, held at Geneva from 2nd to 22nd June, 1938. The Conference held its first sitting on 2nd June and its final sitting on 22nd June. A separate table indicates the countries represented and the composition of their delegations. In all, fifty countries were represented by a total of 157 delegates and some 257 advisers. Although the number of employers' delegates shown in the table was one more than the number of workers' delegates, the voting strength was the same in each case, the Uruguayan employers' delegate having no right to vote as Uruguay had sent no workers' delegate. Before proceeding to analyse the work of the Conference, it may be of interest to reproduce here the " International Labour Charter," as the Preamble to the Constitution of the International Labour Organization is often called. This runs as follows: — Whereas the League of Nations has for its object the establishment of universal peace, and such a peace can be established only if it is based upon social justice: And whereas conditions of labour exist involving such injustice, hardship, and privation to large numbers of peoples as to produce unrest so great that the peace and harmony of the world are imperilled; and an improvement of those conditions is urgently required: as, for example, by the regulations of the hours of work, including the establishment of a maximum working day and week, the regulation of the labour supply, the prevention of unemployment, the provision of an adequate living wage, the protection of the worker against sickness, disease, and injury arising out of his employment, the protection of children, young persons, and women, provision for old age and injury, protection of the interests of workers when employed in countries other than their own, recognition of the principle of freedom of association, the organization of vocational and technical education, and other measures: Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle in the way of other nations which desire to improve the conditions in their own countries: The High Contracting Parties, moved by sentiments of justice and humanity as well as by the desire to secure the permanent peace of the world, agree to the following : (Then follow the detailed provisions for the establishment of the International Labour Organization.) The Conference was opened by the President of the Governing Body of the International Labour Office, Mr. Frederick William Leggett, C.8., of Great Britain, who, after outlining the subjects to be discussed, concluded with the following remarks: — "The division of the Organization into groups and the operation of the employers and workers' representatives as groups having a common policy has tended to conceal the fact that the International Labour Organization consists of nations having widely differing circumstances and differing stages of development As one travels from country to country one realizes the differences, and realizes also how far the discussions here can be from the actual problems which are most prominent in a large number of countries. The outstanding problem of the world is poverty, and it is because poverty is so widespread over the world and not because of any lack of good will that there is the illusion of failure in regard to some of the policies which have brought this Organization into prominence. It is not real failure when the object aimed at is too high in the circumstances in which so many countries find themselves. We should rather have the courage to face the situation and deal with those fundamental though unpleasant facts which are holding progress back. Applying the test of the better fed, better clothed and housed, better protected against the misfortunes o] life, and whose dignity as human beings is safeguarded, there can be no doubt that this Organization has been a great success. We should be glad that, on the basis of the restrictions due to human nature itself, .so much has been achieved, and that the Organization is so well equipped for future progress. If we choose to use properly the opportunity provided by this co-operation of Governments employers, and workers we can make the International Labour Organization the centre to which all those responsible for government can look for exact knowledae and guidance in respect of world social facts and social developments It can become a world objective mind on social questions. But it is necessary to have a wider vision than can be obtained by shutting ourselves within class barriers o',r by using the Organization for the purpose of furthering particular national or group 'poticies. Finally, the Organization will make its greatest contribution towards the peaceful achievement of justice in industrial affairs and realize its greatest value

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only to the extent that it is able to create and preserve neighbourly human relationships between nations and persons, even though they may hold strongly differing views, in order that ultimately those views may be reconciled. It is the duty of this Organization, especially at this critical time in international affairs, to give the world an example of tolerance and human co-operation. I hope that this Conference will not only make progress in the particular subjects with which it has to deal, but will also be productive of new friendships and make a new and substantial contribution to the spread of kindliness throughout the world. With more kindliness the world can be transformed, and our children will have a better chance not only of living, but also of living as civilized beings in a friendly world." The Conference then elected as its President Mr. Waldemar Falcao, Minister of Labour, Industry, and Commerce of Brazil. The three groups (of Government, workers', and employers' delegates) then met to appoint their officers and make arrangements for the composition of the Committees to which the various subjects on the agenda of the Conference were referred for detailed discussion. Each of these Committees spent several days in examining the reports and drafts referred to it by the International Labour Office, and finally drew up a report making definite proposals for the consideration of the Conference as a whole. The various subjects dealt with by the Conference, and the decisions taken, may be summarized briefly as follows: — STATISTICS OF HOURS AND WAGES. By a unanimous vote the Conference adopted a Draft Convention and three Resolutions concerning statistics of wages and hours of work. For the full text of this Convention reference may be made to the report of the New Zealand Government delegates. Briefly, its purpose is to develop, improve, and make more easily comparable the statistics prepared in various countries on hours and wages in the principal mining and manufacturing industries, including building and construction, and the statistics of wages in agriculture. The Convention, if ratified, is expected to lead on to a marked improvement in the existing statistics of wages and hours by setting up approved standards for the guidance of the official statistical authorities of each country in the development of their work. The resulting harvest of statistical information should throw much light on the workers' conditions of life in different countries, and there is no doubt that information of this kind will be of value to all who are working for an improvement in those conditions It is therefore desirable that this Convention should become operative as soon and as widely as possible. I trust that the New Zealand Government will, when it submits the text of the Convention to Parliament, be in a position to recommend its ratification at an early date. The remainder of the principal decisions taken by the Conference were concerned with the preparation of subjects on which a final decision is to be taken at the 1939 and succeeding sessions of the Conference. GENERALIZATION OP THE REDUCTION OF HOURS OF WORK. Under this heading the Conference resumed on a new basis its consideration of the problem of the forty-hour week which it had accepted in principle by a Convention adopted in 1935. As the result of a Resolution adopted at last year's Conference, the question of the generalization of the reduction of hours of work was placed on the agenda of this year's session with a view to the framing of a single Convention dealing with hours of work in all economic activities which are not covered by Conventions on the forty-hour week already adopted at previous sessions of the Conference. In its preparatory work for this year's Conference the International Labour Office devoted five volumes to an examination of the problem. As a result of its investigations the Office came to the conclusion that the preparation of a single Convention covering such a wide field would involve serious difficulties, and that such a Convention, even if adopted, would stand little chance of being ratified. The Office therefore suggested that the Conference should proceed by way of a limited number of Conventions which would, nevertheless, permit action to be taken rapidly. The Conference's Committee on Hours of Work, of which Mr. Thorn and I were members, took the Office reports as the basis of its woi'k, and after a lengthy discussion both the Committee and the Conference decided to adopt the proposals put forward by the Office. As a result, the Governments of the States members of the Organization are to be consulted with a view to the adoption at future sessions of the Conference of — (1) One or two Draft Conventions concerning industry, commerce, and offices: (2) A Draft Convention on coal-mines: (3) One or more Draft Conventions on transport. In regard to the third point, the Conference considered that, quite apart from road transport, which was a separate item on the agenda of this session, it would be practically impossible to consider this year the questions raised by the reduction of hours of work in rail, inland-water, and air transport.

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It asked the Governing Body of the International Labour Office, therefore, to summon in 1938 or 1939 one or more preparatory Technical Tripartite Meetings—i.e., meetings including representatives of Governments, employers, and workers—to study these problems; the question of international regulations on hours of work in transport to be placed on the agenda of the Conference as soon as the Governing Body has before it the results of the work of these meetings. As regards coal and lignite mines, the Hours of Work Committee and the Conference accepted a resolution adopted by the Technical Tripartite Meeting held in Geneva in May, 1938. This suggested that the Office should be asked to frame the questionnaire to Governments, taking into account the results of the work of the meeting. The question of the reduction of hours of work in agriculture has been held over for separate treatment; while the question of the reduction of hours of work in the mercantile marine remains a matter for the Joint Maritime Commission. The Hours of Work Committee accordingly limited its work to an examination of the points to be included in the questionnaire to be addressed by the Office to Governments on the question of the reduction of hours in industry, commerce, and offices. The list of points drawn up by the Committee was adopted by the Conference and will thus form the basis of a questionnaire to be sent out immediately to the various Governments. On the basis of the replies to this questionnaire and to the questionnaire relating to coal-mines the International Labour Office will prepare drafts of Conventions and Recommendations for consideration by next year's session of the Conference. HOURS OF WORK AND REST PERIODS IN ROAD TRANSPORT. The question of the regulation of hours of work and rest periods of professional drivers (and their assistants) of vehicles engaged in road transport, was before the Conference for a first discussion only. The Conference accordingly limited its work on this subject to a general discussion and the adoption of a list of points on which Governments are to be consulted by the International Labour Office with a view to the adoption of a Draft Convention and/or Recommendations at next year's Conference. As regards hours of work, the Governments will be invited to express their opinion on a general limit of forty, forty-four, forty-eight, or any other number of weekly hours of work that they would like to see included in the regulations. They will also be able to give their opinion on the fixing of special limits for different kinds of activity. It is suggested that the limit for daily hours of work should be eight hours per day. The report also suggests that questions should be put to Governments envisaging the possibility of extensions of hours of work in certain exceptional circumstances (accidents, unforeseen delays, replacement of absent staff, shortage of skilled labour, &c.). Other points deal with the authorization of the working of overtime at increased rates of remuneration, the uninterrupted daily rest, night-work, and weekly rest. Governments also will be consulted on the question as to whether they woiild like the reduction of hours of work to be achieved gradually, and as to whether they would like the regulations to include special provisions for certain countries which by reason of the sparseness of their population or the stage of their economic development find it impracticable to create the administrative organization necessary to secure effective enforcement of the proposed regulations. Further points deal with the suspension of the application of the regulations in case of necessity, and the safeguarding clause. The latter appears in all Conventions, and enunciates the principle that existing labour conditions, if more favourable than Ihose provided for in the international regulations, must be maintained. TECHNICAL AND VOCATIONAL EDUCATION AND APPRENTICESHIP. This subject also was before the Conference for the first time in its suggested form. The Committee which studied the question suggested that it would be desirable to adopt one or more Recommendations on the subject next year; and with this end in view it drew up a list of points on which the Governments are to be consulted by the International Labour Office. The list of points is too long and complex to reproduce here, but it may be noted that in its more general proposals the report of the Committee which was adopted by the Conference suggested that the general organization of vocational training, by the co-ordination of official and private institutions, should take into account not only the occupational, cultural, and moral interests of the workers, but also the economic and social interests of the community. Moreover, the development of general education should take into account changes in technique and methods of organization of work, the existing position and trend of development in the labour-market, and national economic policy. CONTRACTS OF EMPLOYMENT OF INDIGENOUS WORKERS. The Conference adopted a list of points on which Governments are to be consulted with a view to the adoption next year of two Draft Conventions, the first of which will deal with the regulation of written contracts of employment of indigenous workers, and the

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second with penal sanctions in all contracts of employment of indigenous workers, whether in writing or not. It is also preposed to adopt at the same time a Recommendation concerning the establishment of labour inspectorates for indigenous workers. The adoption of these Conventions and Becommendation will carry a step further the valuable work which has already been done through the International Labour Organization for the protection of coloured workers in colonial and similar territories. RECRUITING, PLACING, AND CONDITIONS OF LABOUR OF MIGRANT WORKERS. Here, again, the 1938 Conference prepared the way for the-further development of a body of international regulations with which a beginning had already been made. A list of points was drawn up in order to enable the Governments to be consulted with a view to the adoption next year of a Draft Convention and one or more Recommendations concerning the recruiting, placing, and conditions of Labour of workers with special reference to equality of treatment. Some idea of the scope of the proposed regulations may be gained from the following main headings of the list of points on which Governments are to be consulted: Supply of information and assistance to migrantworkers ; recruiting and placing operations; conditions of employment; repatriation; bilateral agreements between immigration and emigration countries. The Conference also adopted a resolution asking the Governing Body of the International Labour Organization to resume its study of the question of the simplification of the formalities to be fulfilled by migrant workers previous to their departure from the country of origin, or in the course of the journey, or on arrival in the country of immigration. RESOLUTIONS AND REPORTS. The Conference also adopted a number of Draft Resolutions. The most important of these was one submitted by several delegates of American countries, urging that a second regional conference of American States should be summoned. (A first such Conference was held in Santiago, Chile, in 1936.) Another Resolution (proposed by Mr. Jouhaux, worker, France) urged the renunciation of discrimination which might affect workers belonging to certain races. The Conference adopted certain modifications of its Standing Orders and took decisions on several reports. It approved the report of the Committee which it had asked to consider the annual reports that Governments of States members have to send to the International Labour Organization on the application of Conventions ratified by them. It also had before it the reports which have to be submitted once in every ten years on the application of the following Conventions: Night-work in bakeries; seamen's articles of agreement; repatriation of seamen; and sickness insurance for workers in industry and for agricultural workers. DISCUSSION OF THE DIRECTOR'S REPORT. Finally, as usual, there was an important discussion on the annual report of the Director of the International Labour Organization. This showed once again how deeply States members appreciate the work of the Organization. Various speakers expressed their sincere regret at the resignation of Mr. Butler, and, at the same time, their good wishes for the Director-elect, Mr. "VVinant. The debate as a whole was both interesting and instructive, and there are passages worth noting in the speeches of representatives of all the groups at the Conference. As will be seen from some of the extracts given below, while the employers' delegates as a whole were opposed to progressive labour legislation, there were some exceptions whose outlook was more in keeping with the times. (I have not included any extracts from the speeches of the New Zealand Government delegates, since these will no doubt be given in full in their own report.) Extracts from speeches on the Director's report:— Mr. Lowe (Employers' Delegate, Ireland). —" . . . From the point of view of an employer, the basic principle of raising the social and industrial conditions in most, if not all, competing countries to a minimum common level seems a sure wa/y to secure a sense of fair competition. Nothing is more disheartening to a good employer than to find that he has been consistently and constantly undercut by producers elsewhere who have no scruples or care for the condition in which their workers live and work. If the moment in the world's history is ever to come when countries will have no need of tariff barriers to protect themselves against unfair competition, it will be due to the success of the efforts of this Organization. " I see no other way. The direct contact here between workers, employers, and Governments secures something which could not be effected by Governments acting alone or in conjunction with other Governments. I am impressed by the firmness with which the Conference passes judgment and, the extent to which Governments carry out the obligations which they have undertaken. The Committee

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of Experts on the application of Conventions seems to allow nothing to pass which ought to be challenged. The very existence of this Committee must have a salutary effect on Governments which have been careless about their undertakings. Even the explanations given by the Governments are open to challenge by their own workers or employers, _ and so something of the efficacy of the verdict of a jury is achieved. If it is difficult to carry out the extreme penalty on a Government for a serious offence, it is something to have an offending Government brought to the Bar of this House and made to realize its delinquency. Speaking for myself, the greatest value of the Organization seems to be the collection and dissemination of information about industrial and economic matters in every country. could not otherwise be obtained in the immediate and practical way in which it is placed before us. More light upon what everybody else is doing has in itself a beneficial effect. No country can carry on with bad and oldfashioned habits without being made aware that there is a better and more effective way. While the Conference differs from a university, it has that function of a university in that it provides a fuller and better knowledge of the larger world in part of which we live. ..." Mr. Colbjornsen (Government Delegate, Norway).—" ... In the last words of his last report the Director reaffirms his faith in the human spirit and human progress by saying that ' there is no reason to fear that the world, having known the joys of freedom and enlightenment, is destined to relapse into the brutish obscurity of another Dark Age.' Mr. Butler has made a considerable and lasting contribution to mankind and to that peaceful revolution which is constantly going on and will by and by create the foundations of a new and better world. We are moving _ towards a synthesis of social and economic efforts which is also a synthesis of freedom and security. Perhaps the biggest problem of our time is to reconcile and merge individual and collective freedom with personal and social security. The path goes through more and better economic and social planning, organization, and co-ordination directed towards the aim of peaceful social development and a better standard of life for the whole community. ..." Mr. Ramadier (Minister of Labour, France). —" ... If the regulation of hours of work has been an important factor in overcoming the depression, then it may be said that the balance-sheet is not unfavourable as regards this reform. We may draw the conclusion that social reform can be a valuable aid in critical moments; but no doubt it is still more prudent not to wait too long and to prevent a social depression by the adoption of the necessary reforms. No doubt the fact that new difficulties have arisen is due to the fact that the new regulation coincided with a marked economic recovery. We had to produce more than in previous years, and we had to do so under stricter conditions regarding labour without amy previous measures of adjustment. " I agree that difficulties of this sort could not be avoided in France, though they should be avoided where possible. In our case the transition was a rapid one. When a transitional scheme could be adopted, it facilitated the introduction of the scheme. The forty-hour week takes account of the progress of mechanization and rationalization, but it reckons on their being general, and perhaps on their being carried still further than at present. Undoubtedly it is better to take time over a reform of this sort and not to make a transformation at a stroke. " It is also necessary for the new scheme to be adapted to the requirements of different industries and trades. Litttle by little our scheme, which is less rigid than some believe, is being adapted where necessary, without abandonment of the principle. And the introduction of the scheme in stages is also a valuable measure. The rules relating to making up time lost and to overtime have already been considerably altered by the decrees of 21st December, 1937, and 24th May, 1938. " Practical experience reveals certain needs which were first of all not recognized, and the necessary modifications are being made; but there is no essential contradiction between the principles of the reform and its careful and flexible application. France is thus gradually recovering its equilibrium, which at one time seemed to be in danger. " I should like to refer to the great lesson which the French experiment can teach to the International Labour Organization. The troubles of June, 1936, may have appeared grave and have threatened the very basis of our country, but France easily found its way to salvation, thanks to its democratic system, for democracy prevents violence by showing how unnecessary it is. France owes its salvation also to an energetic policy of social reform. Social reform is not only an element of progress; it is also one of the essential elements of a nation's stability and force. It is a bulwark which protects civilization, weakness, and impatience. " The French experiment therefore, despite certain difficulties, has succeeded. It may be of general value to the world. In any case, the International Labour Office, which has the duty of promoting social progress throughout the world, should learn the lessons of our experiment. The Office has accomplished its duty

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in a vigorous manner with the help of all the great democracies. The names of those it has called to its leadership: our own great friend and. leader Albert Thomas; Harold Butler, who followed the Organization from its cradle to its maturity; and now John Winant, who is bringing the very valuable aid of America —these three men symbolize the universality of the action of _ the International Labour Office. No depression can attack the International Labour Organization without threatening the very basis of our industrial civilization. ..." Mr. Velar Jauregulbeitia (Employers' Delegate, Spain).—" . . . To-day there are two different principles in the world: the old capitalist outlook, which defends abuses and privilege, and the profound sense of social justice among the working and suffering masses. The march of 'time leads to changes in social relationships, and those who try to bar the road to social progress so that they themselves can retain a privileged situation not always earned by their own efforts or merits see on all sides the spectre of a revolution which they call communism, and which they could easily exorcise if they were to renounce their greed for possessions and look for a settlement which would meet the legitimate claims of the workers. We employers who approach social questions in a generous spirit and are prepared to recognize the rights of others and to organize economic life on the basis of the principles laid down by the Church in the encyclicals De Rerum Novaram and Quadragesimo Anno xvere not only not persecuted, but we were welcomed as comrades by the working classes who fought beside us. It will thus be clear that if we applied the doctrine of Christ it would be very easy for us to reach internal political agreement, which is the essential condition for universal brotherhood. . . . " Mr. Parulekar (Workers' Delegate, India). —" . . . The Director in his report has very rightly observed that it would be impossible for workers to secure lodging with the requisite amount of air, light, and space if they were obliged to pay a strictly economic rent and unless house-construction is subsidized by Government and local authorities. In the census report for 1931 it is stated that the housing-conditions in the City of Bombay, the most industrialized centre in India), are a disgrace to any civilized community. Ninety-five per cent, of the working-class families in the City of Bombay live in one-room tenements of the average dimensions of 110 square feet. There are thousands of workers in Bombay in whose case the footpaths serve the purpose of the shelter of a home : There are thousands of one-room tenements which contain two families, and instances of one-room tenements accommodating seven and even eight families are not unknown. ..." Mr. Harriman (Employers' Delegate, United States of America). —" . . I have attempted to demonstrate that the fundamental trouble in our economic system is a diversion of a part of our national income 'into channels which do not quickly create new work. I refer particularly to loans abroad, to the hoarding of funds in banks or otherwise, and to speculation which, however stimulating it may be while it lasts, eventually collapses, and thus puts billions of bank credit out of circulation, and throws men out of work. If our entire national income of eighty billion dollars had all been spent by its recipients either for the purchase of consumer goods or for the extension of productive plant, then obviously there would have been work and wages for substantially all of our workers. Improved plant would, in turn, have turned out more goods with the same effort, and thus we should have moved gradually and steadily towards a higher and higher standard of living. Under a capitalistic system, private industry working for profit gives employment to our people, while government imposes such regulations upon business as the public welfare requires. This necessarily means that there must be co-operation and confidence among the four great divisions of our economic life, to wit: management, labour, agriculture, and government. If any one of these groups works exclusively for its own good without considering the effects of its demands on the other groups, then disaster will follow. If we are to progress, there must be mutual confidence and mutual co-operation in our economic life. ..." Mr. Amin (Government Delegate, Iraq).—" ... I am gratified to state that the Iraq Government has found in the work of the International Labour Organization the right guide for the solution of the different industrial problems, and recall with pleasure the observations of the Director regarding the progress made in different countries. This progress is no less remarkable in Iraq, for the provisions of the labour law of 1936 are being implemented by the numerous regulations and notifications issued from time to time. ..." Mr. Li Ping-heng (Government Delegate, China). —" . . . When the principles of international law and social justice are ignored, peaceful nations which would like to collaborate on an economic basis cannot do so. Some have attempted to justify wars of aggression by making a distinction between satisfied and dissatisfied countries. The latter, it is said, have no raw materials and must

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therefore colonize, and to justify these colonizing wars the theorists state that the aggressive countries are simply struggling for their own existence. In fact, these countries are attempting to annihilate the nations who are too weak to resist them, and the result is a perpetual threat to world peace. " It has been long realized that wars of colonization do not serve the ends of economic expansion. Nevertheless, in recent years the world has returned to these obsolete ideas. If it is agreed that a large volume of international trade is necessary, it will be easily understood that wars of colonization are an obstacle to such trade, for the conquering countries simply annex for themselves the markets and resources of the countries they conquer, and this restricts international trade and reduces its freedom. Moreover, war is more probable than ever when such conditions obtain. ..." Mr. Curcin (Employers' Delegate, Yugoslavia).-—" . . . There are only two creatures who can face the sun—eagles and the blind. We hope that our statesmen will prove to belong to the former of these categories, and will establish a constructive policy. ..." The Director's reply to the discussion was of such interest that it is worth reproducing in full:— "It is difficult for me to address the Conference on this occasion. My mind and my heart are full of the memories of all these years. I find it difficult to imagine myself divorced from the International Labour Office, an outsider looking on at the play which has been the centre of my life for twenty years, though, of course, my thoughts will always be with it, and when required my services will always be at its disposal. But if it was already hard to go, the words which have been addressed to me by so many speakers in this debate have made it harder still. I should have wished to thank them each individually by name, but perhaps they will allow me to tell them collectively how deeply I have been moved in listening to them. I realize what friendly feelings have prompted them in saying what they did; indeed, their friendliness has led them to ascribe to me qualities and achievements which considerably outrun anything that I should wish to claim, before judges less kindly prejudiced in my favour. I can only tell them that I am deeply grateful and that I shall forget none of them. " The hardest part of leaving Geneva is the severance of the personal ties which have bound rue to so many friends of all nationalities. Those ties have helped me to carry the heavy responsibilities of my office more than anything else, except the constant encouragement and sympathy of my wife, especially in moments of difficult decision. I was therefore particularly touched and grateful for the words ivhich Mr. Curcin and others have spoken about her and which, I can assure them, have given her much comfort. She leaves Geneva with as many happy memories as I do, and, like me, hopes that the separation from all our friends here will be tempered by meeting them again as often as time and fate permit. " Before proceeding to deal with the debate, a very agreeable duty remains to be fulfilled. Many congratulations have been addressed to my successor, and much confidence has been expressed in his ability to fill the post of Director. As regards the congratulations, he has asked me to thank every one who has offered them very deeply. As regards the confidence, I should like to add on my own behalf that I am quite sure that no one could ask for a better successor than the man whom the Governing Body in its wisdom has chosen. I do not need to say more than that, as I am so certain that the future will show how abundantly justified I am and you are in expressing your confidence in Mr. Winant. " Mr. Phelan has also asked me to thank the many speakers who have congratulated him on his promotion to the post of Deputy Director. In view of his long and eminent services to the Office and our close association in this work from the very beginning, I was happy to be able to make that appointment before I left it. His wide experience of the work of the Organization will be invaluable to my successor, and will go far to ensure the continuity of traditions. " But great as are the personal merits and capacities of the future Director and Deputy Director, I am sure that they would agree with me that they could hardly expect success without the assistance of the staff of the Office. For myself, I owe an immense debt of gratitude to all grades for their hard and uncomplaining work, for their loyalty and esprit de corps, upon which I have always been able to count. Without that the present position of the Organization would never have been achieved. " The first point that strikes me about the debate, to ivhich I have listened as effectively as the acoustics of this part of the hall permitted during the last five days, has been the abundant proof which it affords that the International Labour Organization is certainly not a sinking ship. At times I wondered whether it was not a flying-boat. The Conference itself is as large as that of last year, wUch was the largest on record. It comprises the representatives of fifty

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nations, and has! been distinguished by the presence of no less than nine Ministers of Labour. Among them for the first time is Miss Frances Perkins, the United States Secretary of Labor, to whom I owe a very special debt of gratitude for having insisted on fulfilling a personal promise which most Ministers would have felt bound to subordinate to the claims of home duties. I can assure her that both the Conference and myself deeply appreciate the effort she has made in coming, and I venture to think that the speech which she gave us yesterday could not have been made anywhere else but in this gathering with the effect which it undoubtedly produced. In energy and enthusiasm this Conference certainly shows no falling away from the standards of previous years. At a time when international organizations are said to be in decline, it is encouraging to hear an experienced delegate like Mr. Berg declare that the Organization is stronger than it has ever been; to hear Mr. Shri Ram say that ' the crisis, so far as the International Labour Organization is concerned, seems now definitely a matter of the past'; while a large number of delegates, including the Labour Ministers of France, Great Britain, Spain, the United States of America, and Yugoslavia, have proclaimed the determination of their countries that there should be no weakening of their support of the Organization and no relaxation in the endeavour to promote social progress. Mr. Jouhaux made an appeal that there should be no slackening in the effort to promote social justice because of the troublous times in which we live. This debate has given him the answer for which he asked. "I will now turn to the appreciations of my report. I will omit any reference to the compliments which delegates have been good enough to pay to it, and which I very highly appreciated, and will turn to some of the comments and criticisms. "In writing it, I tried throughout to look the facts in the face, and not to blink them or to try to fit them into the frame-work of preconceived theories or prejudices. I have been accused by some speakers of pessimism, by others of optimism, by others of a contradictory mixture of the two. I am quite prepared to plead guilty to all these accusations, because I think justification may be found for them all in the very nature of the present situation. A purely pessimistic picture would have been as inaccurate as a purely optimistic picture. Unfavourable factors are inextricably woven with favourable factors. On the one hand there is an enormous increase in capacity to produce; on the other is failure to put it to the best use. On the one hand is the gradual growth of an international social consciousness which ran like a golden thread through many speeches; on the other is the exaltation of violence and brutality which characterizes the wars actually in progress and which is the psychological assumption underlying competition in armaments. All these things are part of the world as it is to-day, and no review, however summary, could honestly omit them. "It was therefore perhaps inevitable that an attempt to do justice to the facts as they are should make my report appear paradoxical to some readers. Mr. Jouhaux, for instance, reproaches me with pessimism in regard to the shorter working-week. I should not agree with him in thinking that the mission of the Office would be ended if no international agreement for the reduction of hours of work were arrived at in the immediate future. I should, however, agree with him that, although the movement for shorter hours has been delayed, by the armaments race, it remains, as Mr. Ramadier said, a necessity, because the essential causes which are making for shorter hours continue to operate. I was glad to note that Mr. Lambert-Ribot at the close of his interesting speech did not quarrel with this conclusion, as he recognized that shorter hours are a necessary consequence of technical progress. . I pointed out in my report, when the pace of the armaments race begins to slacken the tendencies making for a reduction of hours will have been accentuated rather than diminished. The problem will not only remain but its solution will have become more urgent. Hence, although there is a temporary pause the tremendous drive for the production of war material in most of the principal industrial countries, there is no reason for supposing that the movement towards shorter hours has been arrested or reversed.' A good deal of evidence has been adduced to support this conclusion during the delate. It appears to be generally admitted that the intensification of production arvd the fatigue which results from it have generated an instinctive movement towards shorter hours. Mr. Moston has shown that the forty-hour week is working successfully in Zealand. Miss Perkins has explained how the reduction of hours by collective agreement is likely to be reinforced by Federal legislation in the United States. Mr. Ramadier has shown that the difficulties to which the forty-hour week has given rise in France have been considerably exaggerated, and with the necessary adaptations will no doubt be overcome. Mr. Culley has told us that the forty-five-hour week has become general in Australia largely owing to the adoption of the Forty-Hour Week Convention by this

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Conference; while Mr. Lowe, though an opponent of the forty-hour week, considers the establishment of a forty-five-hour week in his own trade in Ireland as a matter for congratulation. " All the evidence goes to show that shorter hours are not merely desirable in themselves,, but that they constitute one of the essential methods of meeting technological unemployment. That does not mean, however, that the widespread unemployment produced by trade depression can be successfully coped with simply reducingj hours. To avert such depressions it is necessary, as Mr. Harriman said, maintain the pur chasing-power of the people by a proper distribution of the national income and by securing a correct balance between productive capacity effective demand. But although the tendency towards the reduction of hours is inherent in the whole development of modern industry, it can hardly be denied that the competitive piling up of armaments is hindering its rapid realization in a number of countries. You can have excessive armaments or you can have social progress,_ but in the long-run you cannot have both. To say this is not so much pessimism as an economic platitude. "Mr. Hallsworth took me to task for suggesting that the manufacture of armaments may produce any good whatever. I entirely sympathize with him in his dislike of the diversion of national resources to the production of arms. But it can hardly be contested that large-scale expenditure on armaments does create employment and stimulate the demand for raw materials for the time being. Economically and socially, works of public utility would no doubt be vastly preferable; and the apprehensions which have been frequently expressed by business men and economists are sufficient to indicate that the ultimate consequences of excessive expenditure on armaments may be very serious. In the long-run, as Mr. Knob sa>ys, armaments must reduce living standards, and to that extent the appearance of prosperity which they produce is artificial. Both he and Mr. Watt emphasized that nothing is more important than planning to prevent the slump which exaggerated expenditure on armaments may be expected to produce in the future. It is unfortunate that the resolution presented by Mr. Watt, Mr. Chu, and other delegates from the workers' group proposing that the Office should make an inquiryr into this matter could not be discussed under the Standing Orders. I should like to assure them, however, that this is not a matter which the Office is neglecting. It has already published two articles on the subject in the International Labour Review, and they may be certain that the study of the question which _ has already been begun will be continued. I will see what can be done to initiate the study suggested in the second paraqraph of the Resolution. 1 There is, moreover,, one aspect of this question to which reference has been made by Mr. Ernest Brown, Sir Firozkhan Noon, and other speakers which deserves particular attention. One of the outstanding characteristics of the last depression wa,s the collapse of agricultural prices. It is impossible to see how the great agricultural countries in America, Asia, or Eastern Europe can maintain their consumption of industrial goods unless they can obtain a reasonable return 7,7 r foodstuffs and raw materials. This is an essentially international problem. Unless great _ consuming countries of Western Europe and North America can maintain their purchases of rubber, tin, wheat, sugar, coffee, tea woot cotton, and so on, it is idle to expect any improvement of the standards 7 lw l n 9 the. countries which produce them. Unless countries like the Argentine Republic, Brazil, and India can obtain good prices on the world's markets for their primary products, it is idle to expect their wage standards to be improved, either in agriculture or in industry. The agricultural countries are largely dependent for their welfare on, the ability to sell their foodstuffs and raw materials to the industrial countries. When a decline in industrial activity occurs, the agricultural countries are the first and greatest sufferers. Nothing cmi help them more, therefore, than a. concerted and determined effort to solve the problem of the busmess_ cycle on an international scale. This is perhaps the greatest economic and social problem of our times, as I tried to point out in my report relating to the East. ' I was extremely grateful for the appreciative remarks made about that report by various speakers, but there are one or two criticisms which I should like to try to answer In the first place, Ido not think that Mr. Hallsworth will find JZri $ r °™ T 1 0f j T W ? ges - 1 WOuld entirel y agree with him that every effort should be made to raise wages tn industry everywhere, and that one of the To far? tlTfZu ng ■so I s b y action, But it is necessary LlruL 7/ Z i % i age , S m Eastern industry were immediately raised to anything like European levels, it would be impossible for its products to be sold m . Pl jf eS • l %e , nVm consumers ™ the East could afford to pay. As Mi. Kupers pointed out in his remarkable speech, there must be some relationship

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between the level of industrial and agricultural earnings; and in countries which are 90 per cent, agricultural it is unavoidable that wages in industry should largely be determined by what the great body of peasant cultivators can spend on industrial goods. " A second point was raised by Mr. Parulekar, who seemed to think that I shared the view that no attempt should be made to deal with unemployment in India because Indian labour is migratory. I would like to draw his attention to page 73 of my report, where I take precisely the contrary view. I said: 'Formerly, unemployment was rendered less disastrous by the fact that the industrial worker could always fall back upon the village. _ In future, this is likely to become progressively less possible.' At the same time, though workers are no longer returning to their villages as in the past, the increase in the population of India is driving more and more of them into the cities in search of industrial employment, which inevitably tends to louier the standard of industrial wages. In order to cope with this situation, minimum-wage legislation might no doubt be of considerable value, but in itself it will not be of much avail unless there is a general increase of prosperity in the countryside. Mr. Hallsworth invited me to enlarge on the methods by which the adjustment between East and West should be secured. There is no simple method, no royal road. It can only be done by detailed negotiation; but it is certain, to my mind, that the elimination of low wages in the East can only be effected through increased production both in industry and in agriculture. This cannot be done, hoivever, if the outlets for Eastern production on to the world's markets are closed. Negotiation cannot possibly achieve any positive result unless it is based on recognition of the fact that it is in the general interest to enable the East to increase its wealth and to raise its standards through international trade. The alternative is bitter economic warfare, and perhaps in some cases explosions, which will produce disastrous consequences for the whole world. Of this possibility recent events appear to offer some examples. I hold with Mr. Kupers that a valuable beginning could be made in bringing East and West together by a regional Asiatic Conference, in which the difficulties and claims of the East could be thoroughly explained and sympathtically explored. That, I believe, is the first step. " There are two other points to which I should like to allude. Sir Frank Noyce and Mr- Shri Ram emphasized the unsuitability of many of the Conventions adopted by the Conference to Indian conditions. The latter said that many of them had been framed ' in utter disregard of the economic realities of the country, in spite of the provision that in drawing up Conventions attention should be paid to the special economic conditions and peculiarities of countries which have been late-comers in the industrial sphere.' I am bound to say that I feel a great deal of sympathy for this plea, but I do riot think that the Office can be held responsible if more attention has not been paid to the special conditions prevailing in Eastern countries. It was at any time open to the delegates from those countries — whether representing employers, workers, or Government—to propose special provisions for dealing with them, but they have only done so on very few occasions; and last year, during the discussion of the Textile Convention, they declined an invitation which was made to them for that purpose. A further opportunity is provided, however, by the points drawn up by the Office as the basis for questionnaires on hours of work, road transport, and coal-mines. If advantage is taken of these opportunities, I should hope that the Conventions dealing with these questions would be framed in such a way as to be applicable to Oriental circumstances. " Finally, I should have liked to have replied at length to the points raised this morning by Mr. Fennema. I do not share his admiration for the penal sanctions system or his belief in the benefits which it has produced. I find it hard to suppose that the system will continue in the Netherlands East Indies, nor does the experience of other colonial territories in the East suggest that economic development is impossible without it. But these are matters which require careful discussion, which they will no doubt receive at next year's session of the Conference. " I now propose to say a few words about the working of the Office, and on this occasion I am perhaps entitled to speak rather more freely than I otherwise might, since amy benefit which may result will accrue to my successor. Some delegates seem to think that it is capable of expanding its efforts indefinitely without further financial provision. I was therefore glad that Mr. Thorn, right at the beginning of the debate, laid stress on the impossibility of such miracles being accomplished. As Mr. Hallsworth said, more work can only be accomplished with more money. It is impossible to increase the staff, as Mr. Shri Bam and Mr. Parulekar suggested, in order to give more representation to particular countries or in order to carry out work which is at present receiving insufficient attention without enlarging the budget. I should like to give a few figures to show the capacity

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of the existing* staff has already been stretched almost to its limits. The number of Utters received and despatched has increased from 54,743 in 1933 to 62,687 in 1937, an increase of nearly 15 per cent. During the same period the number of pages of Conference documents has increased from 8,475 to 11,204 —some 30 per cent. —while the number of pages translated has risen from 17,200 in 1932 to 20,600 in 1937, a rise of 20 per cent. During the present year the pace has still further accelerated. In the first five months the number of pages translated for the Conference has increased another 30 per cent, as compared with 1937. The •pressure arising from Committees and Commissions of various kinds has constantly developed. We are now being asked to undertake a number of new activities in addition. A Permanent Agricultural Committee has been established, a Permanent Committee on Public Works has been established, and a Committee on Migration is likely to be established in the near future. All these and other developments of less importance imply more work, which I do not believe can be adequately performed with the existing staff, which has only increased by 8 per cent, in the last five years. "Again, during the debate Mr. Cook put forward a number of interesting suggestions for increasing the contacts and influence of the Office in trade-union circles. He and other delegates urged the need for wider publicity, both by increasing our publications and by the greater use of the film and the radio. A good deal more has been done, both as to the production of popular literature on the Office and as to the use of broadcasting, in the last few years. As regards films, we have been considering this question for some time past. I have recently received a report from an expert film-producer proposing the outlines of a possible film, but here again the question of finance at once arises. It appears that a satisfactory film could not be produced for an initial expenditure of less than 60,000 or 70,000 francs, to which it would be necessary to add a further annual sum in order to prevent the documentary material from becoming stale. These are sums which could hardly be provided out of the existing budget. The same may be as regards correspondents, who afford an invaluable means of keeping in touch _ with all countries, and particularly with distant countries. We have already increased their number of recent years, particularly in Latin America, but more remains to be done, for which money is not available. At the same time, there is no doubt that considerable reluctance exists among States members of the Organization to increase their contributions at the present time, even by small amounts. It has been a not uncommon experience that Governments whose delegates have pressed for increased activity of the Organization in this Conference have taken a somewhat different line when the necessary expenditure has come up for consideration " Although the budget of the Organization is drawn up by the Governing Body, who are thoroughly familiar with its problems and requirements, it has to pass through the Supervisory Commission and the Fourth Committee of the Assembly of the League. Both these bodies are mainly composed of financial experts representing the financial departments of their respective countries and among whom there _ are few who have any first-hand knowledge of the International Labour Organization, It is therefore very important that delegates to this Conference should bring home to their Governments, and not least to its financial authorities, the needs and possibilities of the Organization. " Mr. Thorn and Mr. Schiirch also called attention to the present state of the reserve fund. During the last few years the League has adopted a policy of constituting a reserve, but as yet it is not sufficient to enable the Office to weather an of long duration. It is unquestionable that the constitution of such a fund is an essential precaution, but the surpluses available in recent years have nevertheless been to some extent paid back to the States instead of being exclusively devoted to making provision against possible contingencies. Unless adequate reserves are accumulated, all the money, labour, and thought which have gone to the building-up of this Organization might be thrown away by some unexpected emergency, even though it were to prove purely transitory. "It is extremely encouraging to note that so many delegates have attributed the progress made in their countries to the influence of the Organization I was particularly glad to hear the testimony of Mr. Noda, Mr. Almarza, and other delegates from Latin Anierica, and particularly that of its father, Mr. Garcia Oldim as to the beneficial results of the Santiago Conference. I entirely agree with the proposal which is now before the Conference for the convening of a second American Labour Conference next year. I believe such a meetinq would be altogether timely, and hope that it will be as successful as the meetinq as Santiago In this connection, however, I note that several of the workers' delegates from Latin America have expressed regret that more complete delegations were not present from that part of the world. I fully realize the financial difficulty which distant Governments encounter in meeting the expense

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of sending a numerous delegation to Geneva for a considerable period, but there is no doubt that the presence of employers and workers as well as of Government representatives is the characteristic feature of this Organization to which a large measure of its success is due. When I suggested that the Constitution would have to be modified from time to time in the future as it has been in the past to meet changing conditions, I certainly did not contemplate any infringement of its tripartite character. Mr. Krekitch, Mr. Peyer, and other delegates have said that freedom of. association is one of its corner-stones. Without freedom of association, and the freedom of expression which goes with it, it is impossible for the workers to make their voices effectively heard, nor could the systems of collective bargaining, upon the social value of which Mr. Ernest Brown and Miss Perkins so strongly insisted, have been built up. The Constitution makes no discrimination in favour of organizations of any particular doctrinal complexion or political colour, but it does imply that they should be freely and administered by their own members without constraint from outside. That is an essential feature of any effective representation either of employers or workers. " When I alluded to possible changes in the Constitution, I was thinking, among other things, of the important question of the composition of the Governing Body, to which Mr. Schulthess and Mr. Thorn have called attention. Every country ought to feel that it has a chance of securing a seat from time! to time. At present there is a fairly widespread impression that under the existing electoral arrangements there is not as much equality of opportunity as there should be. I believe it is very much in the interests of the Organization that this cause of dissatisfaction should be removed before new elections take place in 1940. My own suggestion would be that the Governing Body, which is now considering the matter,' should make a report upon it to the Conference next year, so that everybody who is interested may have an opportunity of putting forward their views. "In conclusion, after twenty years devoted to the conception, the construction, and the guidance of this Organization, I may perhaps be allowed to conclude with a few reflections on its achievement. Its gradual development has been a slow and at times a disheartening process. The initial task of overcoming the scepticism, the indifference, and the hostility with which we had to struggle in the early years could probably not have been successfully performed at all without the dynamic qualities and the power of popular appeal which Albert Thomas possessed in such an eminent degree. " The opposition which had to be met and conquered came mainly from three sources. First of all, there was the dead weight of conservatism which blocks the path of any progressive institution. From the beginning of social history every attempt to improve the general lot of mankind, and particularly of that vast majority in every country who live by the work of their hands, has encountered the scepticism of those who believe either that no change can be for the better, or that nothing can be done without disturbing fundamental economic laws. Every such attempt has likewise encountered the indifference of those who are satisfied with their own state of life and who care nothing about what happens to the rest of the world. Every such attempt has encountered the hostility of those who conceived their own position or interests to be threatened even by the slightest modification of the existing state of affairs. " All those types of opposition the International Labour Organization has had to meet since the very beginning. Its present position and prestige, to which so many tributes have been paid in the course of this debate, are the best proof of its success in confronting them. But perhaps its most important achievement, and the root cause of this success, lies in the gradual spread of the conviction that social progress is the real godl of all econoynic organization and activity. Twenty years ago that belief was not generally held. On the contrary, it was still commonly supposed that the improvement of living standards and of ivorkingconditions was a secondary matter which might be a by-product of favourable economic circumstances, but which could not be regarded as an end in itself. As a whole series of speeches during this debate have testified, that belief has now been widely abandoned. It has been replaced by the view which was so well described by Mr. Colbjornsen as ' a synthesis of social and economic efforts.' Social and economic policy are now seen not as two contradictory and conflicting endeavours, as they were by so many of the nineteenth century economists and sociologists, but as different aspects of the same thing—of the unending struggle of man to reach a higher rung in the ladder of civilization. That broader outlook on the whole social and economic problem has become more prevalent every year. It marks, after all, a great revolution in human thinking. It removes yet another of those shadow antinomies between ' realism' and ' idealism,' and I am glad to think that this Organization has exerted a world-wide influence in propagating this new and saner approach towards the questions which it was founded to tackle,

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" Then, the Organization had also to meet another kind of opposition, based on another kind of conservatism,. The mere fact that it is an international organization has made it an object of suspicion and dislike to all those who cannot look beyond their national boundaries and who see in the nation the final and complete form of human society. Whether in economics or politics, the exaltation of the tribe or the nation or the race has become increasingly fashionable in recent years, in spite of the overwhelming evidence of fact and figure which shows _ that in the modern world the national well-being is more and more conditioned by the state of the outside world. It is clear that no nation, however can ever achieve economic independence. Economic isolation is nowadays as chimerical a dream as political isolation, and no amount of wishful thinking or artificial barricading will make it a reality. National self-sufficiency means national sacrifices, and the greater the degree of its accomplishment, the greater the sacrifice of living standards involved. In Mr. Campbell's apt and arresting phrase, it is ' economic atavism.' This is not the place to seek the explanation of this strange and disturbing paradox, but it is not the least of the International Labour Organization's achievements that it has somehow managed to survive and to flourish amid all the fierce passions and rivalries which unbridled and unreasoning nationalism has inevitably provoked. Of course, international, thinking is difficult and uncomfortable._ It compels revision of many ideas which seemed self-evident truths, but which were really only convenient assumptions. It is much easier and simpler and more satisfactory to accept without question the strictly national standpoint, to judge other countries and their behaviour in the light of national interests alone, to protest against the tariffs built by others to protect their wage standards, and to clamour for national tariffs to protect one's own wage standards against the competition of others. If the International Labour Organisation has rendered one outstanding service, it has been to bring people together and to help them to understand each other. Every session of the Conference contributes to breaking down prejudice and ignorance, upon which so much nationalistic thinking is unfortunately based. Every report of the Office presents the facts about the subject with which it deals, the facts fairly and impartially set forth, stripped of nationalistic glosses or deformation. " For the first time in history an international staff has been trained to look upon social and economic phenomena without any national bias or predilection. That in itself is an important fact. In any case, as the result of our meetings, Conference, Governing Body, Technical Committees and Conferences, the beginnings of a real international spirit are becoming discernible which can impress ' a newcomer like Mr. Lowe immediately. Though many speeches in this debate were national hymns, they were none the less composed in praise of a social ideal which is more than national. Through them all is running semi-consciously or unconsciously the recognition. of an international standard of social ethics, an international conscience of which this Organization is now the acknowledged embodiment. To me it is impressive to find speaker after speaker suggesting that this Organization now represents something essential in our civilization and that its decline would mean a step backwards towards narrower, more barbaric conceptions of society, from which it is helping the world to emerge. That is the best proof that the Organization is becoming truly international, that it is striking its roots down into men's minds, that it is beginning to command their loyalty. "Some people have chafed at the slowness with which progress has been made. They would like to change the whole of mankind at one bound from national loyalty to world loyalty, and are often inclined to look upon international institutions as useless. I should rather believe that world-loyalty can only be created by cmd through international institutions. One has seen so many instances of beautiful abstract notions of universality which collapsed on contact with reality because their authors had no experience of international life and were still unwittingly governed by national concepts. Loyalty to any world-ideal can only be bred out of real experience. Until it can be given a concrete setting the notion of a society of nations or of a world society will never be anything but a vague and pious aspiration. This Organization is translating the international idea into positive terms, and by so doing is making an international allegiance possible, not as a substitute for national loyalties, but as a goal to which national effort should be directed. There will, of course always be some who regard international institutions simply as useful pawns in the game of their national politics. There will always be others who pay lip-service to the idea of international co-operation at Geneva, but who do little or nothing to bring it home to their countrymen at home. In this respect the International STV °T msatlon has , been fortunate. It owes a good deal of its present status to the energy and persistence with which delegates of all groups have

6—A. 7.

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expounded its work in their own countries and have tried to integrate it in their own national life. But to convert the world from purely nationalistic thinking to a comprehension of the international factors upon which so much of its well-being depends is as revolutionary a change as the change from the mediceval to the modern outlook. It will require not years, but generations, for its accomplishment. If I am right in discerning the first signs of that transformation as already apparent in this Organization, its progress in the two decades since its inception has indeed been significant. "Finally, the Organization was confronted by the immense difficulties arising out of the political and economic dislocations and disturbances which the Great War left as its baneful heritage. It has never enjoyed a period of tranquillity. It has been beset by wars and revolutions, by economic disasters and social upheavals. That it should have survived at all in the turmoil of the post-war world is remarkable; that it should none the less have groivn in strength and authority is astonishing. But, as we have been grimly reminded by the tragic pictures of China and Spain drawn by the Chinese and Spanish delegates, war and social degradation always go hand in hand. When the fruit of man's labour is turned to purposes of destruction, his last state is ivorse than the first. Social legislation goes by the board, hours are lengthened, and real wages are forced down as soon as war takes control of a society. The work of the International Labour Organization cannot hope to prosper in a warlike atmosphere and might be totally ruined in the chaos which another general war would not fail to bring. It can only live by peace. If peace cannot exist without social justice, still less can social justice exist without peace. It was therefore right that this Organization should have been conceived as part of the machinery of peace. I believe it has already made some contribution to peace, and I am. sure that it is capable of making a much greater contribution in the future. " Perhaps the principal reason for the troubles and upheavals which have afflicted Europe since the war was the failure to supplement a new political organization with a new economic organization of the Continent. It was apparently thought that once the political questions were settled, the economic questions would settle themselves. Subsequent events have shown how erroneous was any such supposition. Social and economic dislocations have lent a bitterness to political grievances which they could, not otherwise have acquired. It may be doubted, however, whether this mistake will be repeated. It has now been understood that politics cannot be divorced from economics. The problems which now make statesmen uneasy in their beds are not. only questions of frontiers and minorities and alliances, but also questions of currency and unemployment, of raw materials and foreign exchanges, of social security and the maintenance of living standards. These matter's now figure prominently in the field of international affairs. They are not susceptible to the old diplomatic technique, but none the less they often contain the germs stability or upheaval within, and of war or peace without. Their discussion in the non-political atmosphere of this Organization has already done something to promote greater tolerance and understanding not only between employers and workers, but also between nations. Every step which promotes the spread of social justice is a contribution, direct or indirect, to the cause of peace. For that reason alone, if for none of the others I have cited, this Organization is an indispensable feature of the kind of civilization at which the world is now more and more consciously aiming. I have no fears for its future, and in passing on the torch to my successor I wish him the utmost success in the great task of carrying it another stage forward along the road which will lead to still greater achievement than it has yet known." SOME GENERAL REFLECTIONS ON THE CONFERENCE. New Zealand Representation. As the subjects dealt with at each session of the Conference are both numerous and complex and are of definite interest to the trade-unions of New Zealand it is desirable that the New Zealand workers' delegate should be able, before leaving for Geneva to consult the organizations which he represents as to the attitude he should take up on the main questions to be discussed. Such consultation is necessary not merely in order to ensure that the delegate may attend the Conference in a truly representative rather than merely an individual capacity, but also as a means of ensuring that proper consideration will be given to each subject by the trade-unions which are most directly concerned with it- If this is to be done, the delegate must be appointed some months sooner in future than he has been in the past. t + -^ s h as pointed out by New Zealand delegates to previous sessions of the International Labour Conference, the various technical Committees in which the main detailed work of the Conference is done frequently meet concurrently and it is seldom possible tor a single delegate to attend more than one of them. It would therefore be

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desirable to send, in addition to the delegate, at least one adviser who could assist him with subjects of which he may have no special knowledge and act as his deputy at meetings at which he may be unable to be present. Such advisers are sent by many of the countries represented, and in some cases a sufficient number are present to enable representation to be secured on all or most of the Committees. (The Constitution of the International Labour Office provides that each delegate may be accompanied by as many as two advisers for each item on the agenda of the Conference. At the Conference which I attended, therefore, the maximum possible number of advisers in a single delegation would have been twelve for each delegate, or forty-eight for the complete delegation.) Moreover, if a particular individual could attend the Conference in one year as adviser and in the following year as delegate he would be in a much better position to take an active part in the work of the Conference than any delegate who is present for the first time. In a Conference of this kind, with a complicated procedure and a long history of previous consideration of the subjects on its agenda, previous experience and acquaintance with delegates who have been attending successive sessions is of enormous value. So long as New Zealand continues to send only one workers' delegate, it is scarcely to be expected that the same man will be able to attend more than, say, two successive sessions of the Conference. If continuity in the personnel of the workers' representatives is to be secured, it is therefore essential that the number of such representatives at each session should not be less than two. Although, as I have noted, this proposal has already been put forward by previous workers' delegates from New Zealand, it does not as yet appear to have received serious consideration. It is most desirable that such consideration should now be given to it in time to enable a larger delegation to be sent to the 1939 session of the Conference. So far as I am aware, the only objection to its adoption which has been put forward is that it would involve additional expense. The sum involved seems scarcely large enough to justify a refusal, on this ground alone, to send advisers. If, however, it is regarded as a serious obstacle, the trade-union movement and the Government should press for the adoption at the earliest possible moment of a proposal which has been put forward with the specific object of overcoming this difficulty. This is to the effect that the expenses of the four delegates sent by each country, together with the expenses of a limited number of advisers, should be paid out of the general funds of the International Labour Organization. The cost of representation at the International Labour Conference would then be shared by all the principal States in the same proportions as the rest of the International Labour Organization budget, instead of being, as at present, much greater for those countries which are distant from Geneva than it is for countries near at hand. A system of this kind is already in operation as regards the travel expenses of members of the Governing Body of the International Labour Organization; and countries such as New Zealand, which are at a disadvantage under the present system, would be fully justified in pressing actively for the adoption of a similar arrangement for delegates to the Conference and their advisers. On grounds of equity and fairness the case for such an arrangement is unanswerable; but it must be realized that unless these countries make it their business to take the initiative in the matter nothing will be done. It is therefore desirable that the New Zealand Government delegates to future sessions of the International Labour Conference and the New Zealand delegates to the Assembly and the Council of the League of Nations should be asked to take steps to ensure that proper consideration may be given to this proposal, with a view to its adoption as soon as circumstances may permit. Need for More Publicity. Adequate representation at future sessions of the International Labour Conference would enable New Zealand to play a more active part in the work of the Conference and to benefit to a greater extent from the experience and contacts which the Conference provides. Some of the disadvantages involved in New Zealand's great distance from the seat of the Conference and the International Labour Office would thus be reduced. Further steps must be taken, however, if New Zealand is to share to the full in the advantages of membership in the International Labour Organization. As I ventured to point out in a speech at the Conference, there is need for much more publicity for the work of the International Labour Organization and for more constant and regular contacts between the International Labour Office and the trade-union movement in New Zealand. The International Labour Office should make its work known to the workers of this country by radio and cinema publicity, by vividly presented and readable publications, and by regular visits of its officials to New Zealand. There should also be some regular arrangement by which suitable trade-union representatives could be invited to spend some months on the staff of the Office to learn all about its work and then go back to their own countries to tell the workers what is being done and how to use the resources of the Office more effectively. I am well aware that publicity work of this kind will cost money, and I have no doubt that lack of funds is the main reason why more has not been done in this connection in the past. There is, however, no reason why funds should not be made

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available for this purpose in the future. It is time the International Labour Organization ceased to hide its light under a bushel. Its budget should include a vote of at least £20,000 a year more for publicity than has been spent in the past. It is unfortunate that the New Zealand Government, through not being a member of the Governing Body, has little opportunity to make its influence felt in this direction at the time when the International Labour Organization budget is being drawn up; but I would urge that the New Zealand delegates to the Assembly of the League of Nations be instructed to look after the interests of the International Labour Organization at the time when its budget is being discussed by the Assembly and to support any proposals which may be made to increase the unduly small amount now available for publicity as well as for the general work of the International Labour Organization. Inadequacy of Present International Labour Organization Budget. It is indeed a matter of urgency that the funds at the disposal of the International Labour Organization should be greatly increased. The small sum it now has is totally inadequate for the great work that it has to perform. The following is a comment which I made on this point in the course of the discussion of the Director's report:— " At the present time, as Mr. Thorn, New Zealand Government delegate, lia.s pointed out hundreds of millions of pounds are being spent annually by the nations in preparing for war, while the budget of the International Labour Organization is only 10,300,000 Swiss francs, about £470,000. With this small sum the International Labour Organization has no chance of extending its activities. Therefore I say it is the plain duty of this Conference to impress upon the respective Governments the necessity of immediately making available a much greater sum, in order that the International Labour Organization, instead of marking time at its present level of activity, may expand its work to meet the growing needs and opportunities." Part of the explanation of the parsimony with which the International Labour Organization has been treated in the past may be inferred from the following significant passage in the Director's reply to the discussion on his report:— " There is no doubt that considerable reluctance exists among States members of the Organization to increase their contributions at the present time, even by small amounts. It has been a not uncommon experience that Governments whose delegates have pressed for increased activity of the Organization in this Conference have taken a somewhat different line when the necessary expenditure has come up for consideration. " Although the budget of the Organization is drawn up by the Governing Body, who are thoroughly familiar with its problems and requirements, it has to pass through the Supervisory Commission and the Fourth Committee of the Assembly of the League. Both these bodies are mainly composed of financial experts representing the financial departments of their respective countries and among whom there are few who have any first-hand knowledge of the International Labour Organization. It is therefore very important that delegates to this Conference should bring home to their Governments, and not least to its financial authorities, the needs and possibilities of the Organization." As I have already suggested, this is a matter to which the trade-union movement and the Government of New Zealand should give particular attention. The work and achievements of the International Labour Organization are strictly limited by the funds at its disposal, and it is up to those who have the objects of the Organization at heart to do everything they can to see that these funds are substantially increased. Value oe the International Labour Organization. It may be thought by many in our New Zealand labour movement that the workers in this country have little to gain through the activities of the International Labour Organization. That, however, is incorrect. The International Labour Organization can be of great service to us in more ways than one. In the first place, it compiles a complete record of the industrial and social legislation of at least fifty different countries. This information is available at small cost to the trade-union movement, and I take this opportunity of suggesting to the New Zealand workers' organizations that they should obtain all International Labour Organization publications dealing with the industries in which their members are engaged. Such information will prove of great value when cases are being conducted for the workers in conciliation and arbitration proceedings. In the second place, it must be remembered that there are hundreds of millions of workers in the world who are always living on the verge of starvation. Take India, for instance, with its population of 340,000,000, where the average wage for scores of thousands of workers is 15s. per calendar month. We who are enjoying much better conditions must at all times be prepared to help our fellow human beings whose standard of living is so wretchedly low. Such assistance is desirable not merely on grounds of

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our common humanity, but also for reasons of self-interest. As the Preamble to the International Labour Organization Constitution points out, " The failure of any nation to adopt humane conditions of labour is an obstacle in the way of other nations which desire to improve conditions in their own countries." The New Zealand labour movement must be prepared to help the International Labour Organization in its splendid work. Publicity and still more publicity is required, and our national organization (the New Zealand Federation of Labour| should do all it can to bring the work of the International Labour Organization to the notice of tradeunionists throughout New Zealand. For this purpose it might well purchase supplies of publicity literature from the International Labour Office for distribution in New Zealand, since the International Labour Organization's budget for printing is at present too small to enable it to distribute adequate quantities of such literature free of charge. The New Zealand trade-union movement should also take an active interest in the subjects which are being dealt with by the International Labour Conference and should be prepared to make proposals as to the subjects which should be considered at future sessions of the Conference. It should also take steps to see that proper consideration is given by Parliament to all matters concerning the International Labour Organization, and in particular to all Conventions and recommendations adopted by the Conference. It was a matter for considerable satisfaction that the New Zealand Government delegate was able to announce at the 1938 session of the Conference that New Zealand had ratified twenty-two International Labour Conventions, and that the remaining Conventions are being studied with a view to appropriate action. Such ratifications will help to strengthen the influence of the International Labour Organization throughout the world. They are also of direct importance to the workers of New Zealand, since they afford a guarantee that future Governments will be bound to maintain at least the standards set in the Conventions. It is therefore desirable that action should be taken in future on all Conventions as soon as they are adopted by the Conference; and this is a matter which the trade-union movement should keep in mind. Concluding my report, I desire to point out the great importance that will be attached to the 1939 Conference. This Conference will be called upon to adopt Conventions dealing with the various important matters that were discussed at the 1938 Conference and are mentioned earlier in this report. Much will depend on the nature of replies received from Governments to the questionnaires that are now before them, and it is very necessary that New Zealand should send a full delegation in 1939. I have _ no hesitation in saying that the labour movement of New Zealand have a lot to gam and nothing to lose by pressing for fuller representation at International Labour Organization Conferences. The great good that will come from the contact that one makes with fellow-workers from different parts of the world is in itself most valuable. May I conclude my report by thanking the Hon. H. T. Armstrong, Minister of Labour, and the trade-unions that were responsible for sending me to Geneva. The experience gained is of great benefit. It broadens one's outlook on life, and helps to bring about a better and fuller understanding of the many problems with which we are faced. Moreover, it will, I hope, prove of definite value to the organizations with which I am associated. •i, ' so desire to sincerely thank all the International Labour Organization officers with whom I had dealings. Their assistance and kindness extended to delegates from overseas will remain ever green in my memory. A. Cook.

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REPORT BY CHARLES G. CAMP, NEW ZEALAND EMPLOYERS' DELEGATE.

The Honourable the Minister of Labour, Wellington. Dear SIB, — , 1 , ~ I have the honour to submit the following report upon the twenty-fourth session of the International Labour Conference, Geneva. ~ , , I regret that, owing to the late arrival of the vessel 011 which 1 travelled to Southampton, I did not arrive at Geneva until the early morning of Friday, 3rd June. The Conference opened on Thursday, 2nd June, "1938, and concluded 011 the evening of Wednesday, the 22nd of that month. I attended those sittings of the Conference which my duties as a member of the Committee dealing with the regulation of hours of work and rest periods of professional drivers (and their assistants) of vehicles engaged in road transport permitted. Previous reports furnished by delegates have dealt exhaustively with the history of the International Labour Organization and have also examined in detail the diffeiencc between the terms " Convention " and " Recommendation." I shall not therefore attempt to cover the facts of the position previously recorded. For record and unformity purposes, the matters dealt with at the Conference will be recorded in this statement in the order detailed in the letter forwarded to me from the Department of Labour (6/36/8) of the 30th March, 1938. The Conference on this occasion met in the new building constructed for the Assembly of the League of Nations, and there can be no question but that the improved technical equipment and accommodation generally assisted greatly in facilitating the work of this session There were fifty States represented at the Conference, with a total delegation of 157, including 90 Government delegates, 34 employers' delegates, and 33 workers' delegates. The total number of advisers was 259, including 122 Government advisers, 60 employers' advisers, and 77 workers' advisers. The total number of accredited persons attending the Conference was 416. In this connection it should be noted that the following sixteen States were represented by Government delegates only: Afghanistan, Albania, Bolivia, Chile, Columbia, Ecuador, Egypt, Iran, Iraq, Japan, Lithuania, Panama, Peru, Portugal, Siam, and Turkey. TECHNICAL AND VOCATIONAL EDUCATION AND APPRENTICESHIP. Following the established practice, the agricultural and mercantile marine industries were not included in the discussion. A Committee composed, in accordance with the Riddell-Tzaut system, of sixty members (thirty Government delegates each having one vote, and fifteen employers' delegates and fifteen workers' delegates each having two votes). The discussions of this Committee were based 011 the grey report submitted by the International Labour Office, and consisting of three parts: — (1) Dealing with vocational and technical education (pre-apprenticeship, vocational, and technical schools, supplementary education). (2) Dealing with apprenticeship (regulation of apprenticeship, &c.). (3) Dealing with vocational retraining for unemployed persons. It was decided, by 110 votes to nil, to place this question on the agenda of the 1939 session of the Conference. The employers' delegates, with the exception of those representing the United States of America, France, Poland, India, and Sweden, refrained from voting on this question. I submit hereunder some of the reasons which led to this decision:— (a) The draft conclusions did not raise the question of vocational guidance. (b) It was considered more flexibility to the various points submitted to Governments was necessary. (c) The participation in the supervision of apprenticeship by the various occupational organizations was strongly opposed. (d) The vocational retraining of unemployed persons was rejected. The employers' reasons are dealt with at length in the Provisional Record No. 23. REGULATION OF CONTRACTS OF EMPLOYMENT OF INDIGENOUS WORKERS. The Committee set up to review this question consisted of sixteen members, appointed in accordance with the Riddell-Tzaut system (eight Government delegates, four employers' delegates, and four workers' delegates). The grey report reviewed the problems of this question under twelve separate chapters, as follows: — (1) Nature and scope of the question on the agenda. (2) Contracts required to be in writing. (3) Contents of the contract. (4) Administrative supervision of the conclusion of the contract. (5) Medical examination. (6) Conclusion of contracts by women, young persons, and children. (7) Length of contracts.

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(8) Transfer of contracts. (9) Termination of contracts. (10) Repatriation. (11) Re-engagement contracts. (12) Penal sanctions. In the opinion of the employers the important points were dealt with in the following chapters, 7, 9, 10, and 12. Further, it was maintained that the labour requirements of industrial and agricultural undertakings had not been provided for in view of the needs of both. The full report of the final recommendation of the Committee is included in the Provisional Record No. 16. J X was decided, by 100 votes for to 24 against, to place this question on the agenda of the 1939 session of the Conference. RECRUITING, PLACING, AND CONDITIONS OF LABOUR (EQUALITY OF TREATMENT) OF MIGRANT WORKERS. . Tlie grey report dealing with this question covers the supplying of information to migrants and the various operations connected with the recruiting and placing of migrant workers; also the activities of recruiting and placing agents and the selection of workers and their transport. It further deals with conditions of employment and contracts the execution of contracts, and the equality of treatment of migrant workers. A further chapter covers repatriation in all its different aspects, particularly with reference to the protection of the workers. A Committee composing forty-four members, in accordance with the Riddell-Tzaut system, was appointed to review the question (twenty-two Government delegates and eleven employers' and eleven workers' delegates). , 7 Conference decided, by 126 votes to nil, to place the question on the agenda of the 1939 session of the Conference. REGULATION OF HOURS OF WORK AND REST PERIODS OF PROFESSIONAL DRIVERS (AND THEIR ASSISTANTS) OF VEHICLES ENGAGED IN ROAD TRANSPORT. This question was first considered as an item in the generalization of the reduction of the hours of work, but the Governing Body placed it on the agenda as a separate item. .; grey report summarized the position and suggested a questionnaire covered by ten items, as follows:— (1) Form of the regulation. (2) Scope. (3) Normal hours of work. (4) Extension of hours of work. (5) Daily rest. (6) Gradual application of the regulations. (7) Special provisions for certain countries. (8) Suspension of the application of the regulations. (9) Safeguarding clause. (10) Supervision of enforcement. •p.committee comprising forty-eight members was appointed, in accordance with the Kiadeli-i zaut system (twenty-four Government delegates and twelve employers' and twelve workers delegates). This question has received the attention of the Organization since 1926, but up to the present attempts to draft International Regulations have been abortive. At this Conference the employers' technical section reached the opinion that the question presented a double aspect— (1) A social aspect. (2) A safety aspect. i soc^a \ as P e °t was covered by the Washington Convention on the Forty-eight-hour Week, and with the exception of the employers' delegates from the United' States o± America and France the employers were unanimous in deciding not to discuss the hours of work, claiming that the correct procedure was to deal with the question under the Generalization of the Reduction of Hours of Work"; and, as they opposed a Draft convention on this subject, they declined to participate in the preparation of any matter dealing with it, not only m their own interests but in that of the community generally. t ,r a 'rf a a t Resolution on the reduction of hours of work in transport submitted 7 . Committee on Hours of Work was considered by the Conference, and by 93 votes for to 28 against the resolution was carried. The following Draft Conclusions were also submitted to the Conference-— Having examined the report submitted by the International Labour Office on the regulation of hours of work and rest periods of professional drivers (and their assistants) of vehicles engaged m road transport, the Committee considers that the question might suitably be made the subject of international regulations, and invites the International -Labour Omce to consult the Governments on the following points: I.—Form of the Regulations. 1. (a) Draft Convention. (ft) Recommendation.

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(c) Draft Convention and one or more Recommendations—in this case, indication of the points which should be included in the Draft Convention and in the Recommendation or Recommendations. ll.—Scope. (1) Scope ws regards Undertakings. 2. Application of the international regulations— _ (a) To transport of goods by road to any distance effected by— (i) Undertakings engaged in the carriage of goods tor hire or reward—i.e., in the carrying of goods for others. (ii) Undertakings engaged both in the carriage of goods tor hire or reward and in the carriage of goods produced, manufactured, or sold by the same undertaking. (iii) Undertakings carrying only goods produced, manuiactured, sold by themselves. (b) Passenger road transport— (i) Trams, trolley-cars. (ii) Omnibuses and other stage carriages. (iii) Long distance and other passenger services. (c) Any other classes of undertakings or classes of transport by road tor any 3. Possibility of excluding by national laws and regulations the following classes of undertakings or classes of transport: — . . , (a) Transport by agricultural and forestry undertakings m so tai as sucn transport is necessarily connected with the work of these underta mgs. Criteria to be proposed. . , (b) Transport of sick and injured persons by hospitals, nursing homes, and similar establishments. ~ ~ . naaci (c) Public transport under the authority of the State or local authority m cases of emergency and to maintain public safety. (2) Scope as regards Vehicles. 4. Application of the international regulations— n , i • i (a) To vehicles used in road transport and propelled by mechanical power, including— (i) Internal-combustion engines. (ii) Steam. (iii) Electricity. (iv) Other power methods. (b) To vehicles used in road transport and drawn or propelled by any other (c) To trailers drawn by vehicles propelled by any of the above methods. (3) Scope as regards Persons. 5. Application of the international regulations — (a) To drivers of passenger and goods vehicles. (b) To attendants on passenger and goods vehicles. (c.) To other workers engaged in connection with passenger and goods vehicles and their loads, if required to travel. 6. Application of the international regulations — (a) To all persons covered by point 5 (b) Only to wage-earning staff, to the exclusion of owners, persons operating a' concession, managers or directors of undertakings, and members o their families 7. Possibility of exempting by national laws and regulations professional drivers of private vehicles used solely for personal services. 111. —Normal Hours of Work. (1) Hours of Work. 8. (a) Definition of.hours of work to comprise the time during which the worker is at the disposal of the employer or of any person entitled to claim his services. (b) Definition of the factors constituting hours of work:— (i) Inclusion in hours of work of time spent on the vehicle and m any other work done during the running-time of the vehicle, as well as subsidiary work and of periods of attendance or waiting-time during which the worker remains at his post in order to meet possible calls or to resume work at the time fixed in the time-table. (ii) Inclusion in hours of work of breaks for rest not exceeding a duration specified in each country, or of rest periods during which the worker is not free to dispose of his time as he pleases. (iii) Exclusion from hours of work of breaks during which the worker is tree to dispose of his time as he pleases. , ~ 9 Definition of running-time to comprise the time from the moment when the vehicle starts at the beginning of duty until the moment when it stops at the end of duty, excluding breaks and interruptions of work during which the worker is tree to dispose of his time as he pleases.

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10. Definition of subsidiary work to comprise all work connected with the vehicle and its load outside the running-time of the vehicle, and more particularly— (a) Formalities completed before, during, or after service (accounts relating to transport, signing register, handing in service-sheets, checking tickets, and paying in cash, &c.). (b) Taking over and garaging of the vehicle and incidental running of the vehicle during service, including travelling to and from the point where the person signs on or off and the point where he takes over or leaves the vehicle. (c) Upkeep and repair of the vehicle. (d) Loading and unloading of the vehicle. (e) Feeding and care of draught animals. 11. Limitation of the hours of work—for example, to forty, forty-four, or forty-eight hours per week. 12. Principle that the competent authority may authorize normal weekly hours of work exceeding forty when the work performed is of such a nature as to involve a considerable proportion of subsidiary work, attendance, or waiting. 13. Application of this principle— (a) To persons who ordinarily do a considerable amount of subsidiary work, but whose work is not frequently interrupted by periods of attendance or waiting—forty-four or forty-six hours, for example. (b) To persons whose work is frequently interrupted by periods of attendance or waiting—forty-eight hours, for example. 14. Limitation of daily hours of work—for example, to eight hours per day. 15. (a) Calculation of weekly hours of work as an average over a longer period than a week. (b) Fixing of the maximum period over which hours may be averaged. (2) Driving-time. 16. Definition of uninterrupted driving-time, to include the time spent in driving a vehicle between two rest periods (breaks or daily rest period) or between a rest period and some work or duty other than driving. 17. Limitation of the period of uninterrupted driving—for example, to four, four and a half, five and a half, or six hours. 18. Exceptions to this limit by national laws and regulations in cases where stops provided for in the time-table or the intermittent nature of the work ensure adequate breaks for the driver. (3) Spread of the Working-day. 19. Fixing in each country by the competent national authority, after consultation with the organizations of the employers and workers concerned, of the maximum spread of the working-day, through the stipulation of the number of hours permissible between the beginning and end of duty. (4) Making up Lost Time. 20. Making up of time lost as a result of— (a) Accidental causes. (b) Legal public holidays falling on a working-day. 21. Fixing of a time-limit for- the making-up of lost time. IV.—Extensions of Hours of Work. (1) Extensions in View of Exceptional Circumstances. 22. Indication of the circumstances justifying extension:— (a) Accidents, running repairs, dislocation of services or interruptions of traffic due to force majeure, rescue work. (b) Unforeseen delays. (c) Replacement of absent staff. (d) Transport of sick or injured persons when transporting them with the object of providing relief in case of earthquake, flood, fire, epidemic, or other calamitous visitation or disaster. 23. Extensions to meet exceptional requirements concerning the— (a) Transport of sick and injured persons by hospitals, nursing homes, and similar establishments or by undertakings exclusively engaged in this branch of transport. (b) Transport by hotels of passengers and their luggage between the establishment and the station or port of arrival or departure. (c) Funeral undertakings. 24. Limitation of extensions to time needed for indispensable work. (2) Extensions due to Shortage of Skilled Labour. 25. Extension allowed only in the case of proved lack of indispensable skilled labour. 2b. Procedure for the authorization of extension: Decision of the competent national authority after consultation with the organisations of employers and workers concerned..

7—A. 7.

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(3) Overtime at Increased Kates of Remuneration. 27. Possibility of introducing overtime on condition that increased rates are paid. 28. Limitation of the maximum annual allowance of overtime by the international regulations: — . 1 (a) When hours of work are calculated as an average over a period exceeding a week—to seventy-five hours, for example; (5) When hours of work are calculated over a period not exceeding a week— to one hundred and fifty hours, for example. 29. Procedure: Fixing of the allowance by the competent national authority, after consultation with the organizations of employers and workers concerned. 30. Fixing by the international regulations of the minimum rate of overtime pay— for example, time and a quarter, time and a half, double time, or some other rate, according to the occasions or circumstances on which overtime is worked. V.—Periods of Rest. (1) Daily Rest. 31. Principle of an uninterrupted daily rest in every period of twenty-four hours. 32. Fixing of the minimum length of the uninterrupted daily rest—at ten, eleven, twelve, or thirteen hours, for example. 33. Reduction in the length of the uninterrupted daily rest— (a) On a specified number of days in the week, provided that the resulting average rest does not fall below the prescribed minimum. (b) When shifts are changed over. (2) Night-work. 34. Possibility of limiting night-work. (3) Weekly Rest. 35. Principle of an uninterrupted period of weekly rest in every period of seven days. 36. (a) Fixing of the minimum length of the uninterrupted weekly rest —for example, at thirty hours. (b) Fixing of the minimum length of the uninterrupted weekly rest to be comprised within one calendar day—for example, twenty-two hours. VI. —Gradual Application of the Regulations. 37. Principle of reducing hours by stages. 38. Fixing of the maximum length of the transitional period—three years, for example. 39. Fixing of maximum limits during the transitional period exceeding, for example, by two hours the limits contemplated in points 11, 12, and 13. VII. —Special Provisions for certain Countries. 40. Possibility of exempting from the application of the international regulations, in the case of certain countries, the territories in respect of which by reason of the sparseness of their population or the stage of their economic development it is impracticable to create the administrative organization necessary to secure effective enforcement of the proposed regulations. 41. Possibility for certain countries for exempting from the application of the international regulations family undertakings and undertakings employing a number of workers lower than a figure to be specified by these regulations. 42. Exceptions for certain countries to the normal hours of work laid down for undertakings subject to the international regulations:— (а) Possibility of fixing, for the travelling staff of undertakings engaged in passenger transport by motor bus or coach on regular routes, a weekly limit for normal hours of work, not exceeding by more than four hours, for example, the limits fixed in points 11, 12, and 13. (б) Possibility of fixing, in the international regulations, limits higher than those laid down under 42 (a) for the driving-time and hours of work of persons engaged in other classes of passenger and goods transport. Vlll.—Suspension of the Application of the Regulations. 43. Principle of suspension— (a) In case of necessity for meeting the requirements of national safety. (b) In case of necessity for ensuring the working of a service of public utility. (c) In case of necessity for protecting the national economic system. 44. Obligation to notify the International Labour Office immediately of the suspension of the regulations, with an indication of the reasons which have led to it.

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IX.—Safeguarding Clause. 45. Inclusion in the regulations of a safeguarding clause providing that, in accordance with Article 19, paragraph 11, of the Constitution of the International Labour Organization, nothing in the international regulations shall affect any law, award, custom, or agreement between employers and workers which ensures more favourable conditions to the workers than those provided for in such regulations. X. —Supervision of Enforcement. (1) Obligations on Employers and Drivers. 46. Drawing up by the employer of a roster, to be communicated to the staff and supervisory authorities. 47. Keeping by the employer of a register or individual card for each worker, showing the number of hours worked. 48. Issue by the employer to each driver of an individual control book. 49. Keeping by the driver of an individual control book, and entering therein of driving-time, hours of work, and hours of duty. 50. Other methods of control —for example, installation on mechanically propelled vehicles of instruments registering the effective hours of duty of the driver. (2) Obligations on Governments. 51. Establishment of a standard form for control books. 52. Setting up or maintenance of a system for the supervision of enforcement of the regulations by the labour inspection department, traffic commissioners, police, or other appropriate administrative authority extending not only to garages, depots, and other premises, but also to the roads. 53. Indication in the annual reports under Article 22 of the Constitution of the International Labour Organization of the action taken for supervision of application of' the international regulations, and in particular— (a) The method of averaging for hours of work. (b) The number of hours of overtime worked. (c) Any recourse to the special provisions for the gradual application of the international regulations. (d) Any recourse to the special provisions for certain areas or countries. The Conference, by ninety-six votes for to twenty-seven against, decided to place this question on the agenda of the 1939 session of the Conference. GENERALIZATION OF THE REDUCTION OF THE HOURS OF WORK. The International Labour Office subdivided this question into four parts, as follows:— Part 1— (a) General introduction. (5) Industry, commerce, and offices. Part 2 — Section A: Rail transport. Section B: Inland-water transport. Section C: Air transport. Part 3: Coal-mines. Part 4: Hours of work statistics. With reference to Part 3, Coal-mines, a meeting was held at Geneva on the 2nd to 10th May, 1938, of the Tripartite _ Technical Committee of the industry, and was attended by delegates from the following coal-producing countries: — Belgium; Czechoslovakia (no Government representative); France; Great Britain; Netherlands; Poland; Yugo; and the United States of America. The Conference was also attended by a Government delegate from Brazil and Chile and Greece appointed an observer. ' The Tripartite Conference recommended that further discussion of the subiect— coal-mmes—was unnecessary _at the twenty-fourth session of the 1938 Conference but recommended that the _ question should be treated as a separate item and placed on the agenda of the 1939 session for final discussion. The employers attending the Tripartite Conference abstained from voting on the above-described resolution, as they contended they had attended the Conference as experts and were not competent to decide and vote on a question of procedure

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The International Labour Office therefore submitted separately the question of the reduction of hours of work in coal-mines, and forwarded its conclusions to the Tripartite Meeting for consideration. The question was, after consideration, submitted to the 1938 session of the Conference. The Conference, by 82 votes for and 29 against, decided to place the question " Reduction of the hours of work in coal-mines " on the agenda of the 1939 session of the Conference. The general question of hours was then considered. The Committee of the Conference, composed in accordance with the Riddell-Tzaut system, consisted of sixty-three members (twenty-seven Government delegates and eighteen employers' and eighteen workers' delegates). On the general question, the employers adopted the following attitude: — (1) To take part in the general discussion. (2) To present a demand to insert in the draft a question relative to the economic consequences that a reduction of hours of work would have. (3) To maintain an attitude of non-participation in any debate having for its object the framing of a Convention or the preparation of a questionnaire dealing with the reduction of hours of work. The arguments submitted by the employers in support of the policy outlined in the preceding paragraphs were as follows: — (1) The question of the reduction of hours of work would amount in practice to that of establishing a forty-hour week. This weekly limitation of hours had first teen considered as a means of reducing unemployment, but it had now been brought up as a measure of social progress. (2) The arguments used by the employers in the past against the establishment of a forty-hour week remained valid: the reduction of hours of work would increase the cost of production and selling prices, lead to a lowering of the standard of living of the workers, and to an increase in unemployment. (3) In the countries in which the forty-hour week had been applied—the United States of America, New Zealand, and France —experience appeared to have justified these arguments. With regard to Prance in particular, figures given by a former Minister of Finance showed that the number of persons wholly unemployed had increased from 371,400 in 1937 to 394,200 in 1938, an increase of 22,800. In New Zealand, where the forty-hour week was also said to apply, there was in fact no legal limitation of hours of work in industry in respect of adult males, but only legislation fixing the point at which overtime rates applied. (4) Hours of work might be reduced in future, but not as the result of regulation. It would happen when an improvement in economic conditions or technical progress enabled this reduction to take place without any increase in the cost of production and, consequently, without prejudicing consumers. (5) It was a mistake to attempt to increase the standard of living of the workers by giving them more leisure, because their standard depended on the profits produced through industry and trade. It was only when production was increased that it "would be possible to give a larger income to those who participate in production in any country, and in this connection it was a great mistake to believe that mechanization alone could enable this increase to take place, because it could not take place in all industries. (6) It would not appear possible to ask these countries that had not ratified the Convention on the forty-eight-hour week to apply at present regulations prescribing a weekly limitation of hours reduced to forty a week. (7) It was necessary to take into account the unsettled conditions in Europe. All the information at hand, in particular regarding hours of work in Germany, should render the supporters of the generalization of the reduction of hours of work very careful. Any such measure would lead many countries to economic suicide. In Germany the reports of the Factory Inspectors for 1936, as published by the International Labour Office on 2nd May of this year in Industrial and Labour Information, showed that in the metallurgical and machine-building industries and the building and kindred trades working-days of ten hours were by no means the exception, and the reports gave examples showing that it was necessary to allow an extension of hours beyond ten a day especially for skilled workers, and that in exceptional cases the hours worked were from sixty-three hours and a half to seventytwo hours a week. Further, with regard to Italy, at whose instigation the proposal for a forty-hour week was raised at Geneva in 1932, the publications of the International Labour Office showed that a sixty-hour week was permitted in all industries concerned with the production of war materials. The Conference decided,by 92 votes for to 27 votes against, to place on the agenda for the 1939 session of the Conference the question of the generalization of the reduction of the hours of work.

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STATISTICS OF HOURS AMD WAGES IN THE PRINCIPAL MINING AND MANUFACTURING INDUSTRIES, INCLUDING BUILDING AND CONSTRUCTION, AND IN AGRICULTURE. A of thirty-six members, composed in accordance with the Riddell-Tzaut, system, was appointed to consider the question (eighteen Government delegates with one vote each, nine employers' and nine workers' delegates with two votes each). The employers stated at the outset that they were in favour if the principle embodied m the grey-blue report submitted by the International Labour Office. The Draft Convention was adopted, by 125 votes for and nil against, and was referred to the Drafting Committee of the Conference for action. ANNUAL REPORT OF THE DIRECTOR (HAROLD BUTLER, ESQUIRE), OF THE INTERNATIONAL LABOUR OFFICE. Ihe Director submitted an economic review in this report covering the following ground:— Chapter 1: Prosperity regained—and lost. (The measure of recovery, armaments and autarchy, recession.) Chapter 2: The social balance. (Employment, wages, social insurance, other signs of progress.) Chapter 3: Hours of work. _ (The lengthening of hours of work, the situation m France, other applications of the shorter working-week, the present task.) Chapter 4: The progress of the International Labour Office. Chapter 5: The future. (The widening horizon, the growing importance of the East, the increased scope of the Organization.) The practice followed in past years was continued, and sixty-eight, speeches were delivered from the rostrum of the Conference. Among the speakers were Miss Frances Perkins, Secretary of Labour, United States of America. Mr. Ramadier, Minister of Labour, France. Mr. Ernest Brown, Minister of Labour, Great Britain. Mr. Aguage, Minister of Labour, Spain. Mr. Krier,. Minister of Labour, Luxemburg. Mr. G. H. Brown, Assistant Deputy Minister of Labour, Canada Mr. Tzvetkovitch, Minister for Social Affairs and Public Health, Yugoslavia. It would not be fitting in this short statement to endeavour to present even a brief outline of the speeches. Naturally, the report was criticized from many different angles but the outstanding feature throughout was the confidence expressed in the Organization and general approbation of the work and services of the Director. Mr. Alexandre Knob, employers' delegate from Hungary, who is a Member of Pailiament, a Director of the National Federation of Hungarian Manufacturers and Deputy Member of the Governing Body of the International Labour Office, summarized in his closing speech the value of the services of Mr. Butler. Inter alia, he stated: We knew his outstanding qualities, his human feelings, his scientific ability, and his practical skill. He also has to an outstanding extent a sense of balance. He has always realized the great importance of obtaining harmony between economic, social, and political endeavours. I have always felt very distinctly that Mr. Butler considered as, perhaps, a central point in his work the establishment of that equilibrium, and with his gifts of moderation, wisdom, and circumspection he has sought to establish the balance of which I have spoken." SUMMARY OF THE ANNUAL REPORTS BY MEMBERS ON THE MEASURES TAKEN TO GIVE EFFECT TO THE PROVISIONS OF CONVENTIONS TO WHICH THEY ARE PARTIES • APPLICATION OF CONVENTIONS. A Committee consisting of fifteen members (five Government delegates and five employers' and five workers' delegates) was appointed. The Committee reviewed 634 reports, and stated that " the great majority of Governments have endeavoured to fulfill their obligations loyally, and most of them'have removed more or less speedily discrepancies that existed between the provisions of the ratified Conventions and those of their own national legislation." Certain Governments had to be reminded, however, that for countries ratifying international Labour Conventions the Conventions imposed international obligations as in other treaties, and such Governments were requested to bring their national legislation into harmony with the provisions of the Conventions which they had ratified. DECENNIAL REPORTS ON THE WORKING OF THE FOLLOWING CONVENTIONS. (a) Night Work (Bakeries) Convention, 1925. (b) Seamen's Articles of Agreement Convention, 1926. (c) Repatriation of Seamen Convention, 1926. (d) Sickness Insurance (Industry, &c.) Convention, 1927. (e) Sickness Insurance (Agriculture) Convention, 1927. The Governing Body decided not to place the question of the revision in whole or m part of the above-named Conventions on the agenda of the Conference, but the Conference poted the periodical reports received.

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SUMMARY. A survey of the work of the session of the Conference discloses that one Draft Convention—viz., Statistics of Hours and Wages in the Principal Mining and Manufacturing Industries, including Building and Construction, and m Agriculture—was ' The balance of the items on the agenda were discussed very fully, and the result of these discussions will be found in the questionnaires which will be drawn up by the International Labour Office for submission to Governments, and following the standard procedure will probably be adopted as Conventions and Recommendations by the next session of the Conference. STANDING ORDERS AND PROCEDURE. The Conference was requested to consider certain proposals submitted by the Governing Body. These fell under three main headings :— (1) Procedure for the adoption of Draft Conventions and Recommendations. (2) Interpretation of paragraph 3 of Article 79 of the Standing Order of the Conference, as regards the position of substitute members of Committees. (3) The renumbering of certain Articles in the Standing Orders of the Conference. The Committee consisted of twenty members, and was composed on the Riddell-Tzaut system, there being ten Government delegates and five employers' and five workers' delegates. The Resolutions are dealt with in extenso in the Industrial and Labour Information, 27th June, 1938, page 388. An item which did not appear on the agenda—viz., the suggestion that a further Conference of American States members of the Organization, similar to that held at Chile in 1936, should be convened at an early date—was received enthusiastically. The Conference passed a resolution authorizing the calling of such a meeting at a date to lie arranged. As previously indicated in this report, the Governing Body has with regret accepted the resignation of Mr. Harold Butler as Director of the International Labour Office, and on the Ist of January next Mr. John G. Winant will succeed him. Mr. "Wiiiant is a leading figure in the United States. He was on three occasions Governor of the State of New Hampshire, and he was also Chairman of the Board appointed to inquire into the United States textile strike. Further, he has had over three years' experience as a delegate to the International Labour Office. I have to sincerely thank the New Zealand Government and workers' delegates for our happy relationship throughout the Conference. I have the honour to be, Sir, Yours faithfully, Charles G. Camp.

Approximate Cost of Paper.—Preparation, not given; printing (585 copies), £75.

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