A.—s

(2.) Calling for a report on, and facilitating the study of, statistics bearing on the question. (3.) Providing for a study of the private manufacture of arms, munitions, and war material with a view of the drawing-up of a Convention and the holding of a conference. The final text of the draft Convention has not yet been issued. (2.) Co-ordination of the Work of the Temporary Mixed Commission. Disarmament occupying first place in the deliberations of the Assembly, with the probability of a conference on the subject, it became necessary to prepare a plan for the better working of the Temporary Mixed Commission for the Reduction of Armaments, and the Permanent Advisory Commission for Military, Naval, and Air Questions. Resolutions providing for this, and other resolutions dealing with (1) the report of the Temporary Mixed Commission with regard to the Probable Effects on Warfare of Chemical Discoveries, and (2) continuation of the work of preparing the Military Yearbook, were also passed on the 27th September. The Assembly documents are Nos. 115, 122, and 133. COMMITTEE No. 4. Budget of the League. In the first place, I desire to draw attention to the statement regarding the financial position of the League on the 31st August, 1924 (Document A. 49). Since that statement was issued five States paid early in September the whole or part of their contributions due. The difficult years of preparation have passed, and now, owing to careful nursing and wise administration, based on suitable regulations, the financial position of the League is favourable —so favourable that the debt on the building which houses the League and staff has been cleared, and the working capital of the fund (which belongs to contributing States) was more than 2,500,000 gold francs when the statement above referred to was issued. The audited accounts for 1923 will be found in Document A. 1 ; whilst the Budget of the League, as approved by the Supervisory Commission before the Assembly met, is Document A. 2, in three parts, each part dealing with one of the three autonomous organizations comprising the League —i.e., the Secretariat, the International Labour Office, and the Permanent Court of International Justice. During the course of the Assembly a number of supplementary votes were considered. Some of these I have alluded to in various parts of this report. The total Budget for the year 1925, as approved by the Assembly, amounts to 22,658,138 gold francs. The unit amounts to 24,311-31 gold francs. For the year 1923 there was a surplus of 2,774,854-86 gold francs. In the Budget of 1924 there was included a sum of 1,635,274-41 gold francs as temporary contributions to the Working Capital Fund. This is to be reimbursed proportionately to States members of the League, and those States which have paid their contributions for 1924 will receive a credit of the amount due to them when application is made for payment of the 1925 contributions. The balance of the surplus, amounting to 1,139,580-45 gold francs, is to be used towards the construction of the new building of the International Labour Office. There is yet a further surplus of 1,756,873-40 gold francs, the contributions of the Argentine Republic towards the Budgets of 1922 and 1923. This sum is to be placed to the ci edit of the Working Capital Fund, but in a separate account, in which the share of each State to this surplus will be indicated. Representations by the staff regarding the rules for administering the Staff Provident Fund, and by the locally recruited staff regarding the salaries, Were considered by the Fourth Committee. No change was made in the regulations of the former (Document A. 6), except that it was decided that the Assembly, and not the Council, should be given power to modify the regulations. With regard to salaries of the locally recruited staff, the committee approved the suggestion that a deduction of 3| per cent, which took place at the beginning of this year should disappear from the Ist October, owing to an increase in the cost of living in Geneva. A useful summary of the Work accomplished by the Fourth Committee is a report submitted to the Assembly on financial questions (Document A. 129). This report contains the resolutions passed by the Assembly on the 29th September. The Budget, approved by the Assembly, will be found in Documents A. 2 (2), A. 2 (a) (2), A. 2 (b) (2). New Assembly Hall. A suitable assembly hall, with offices attached (apart from the accommodation required for the staff) is a necessity. Meetings are at present held in the Salle de la Reformation, a badly ventilated hall of poor acoustic qualities, totally unsuited for the meetings of the Assembly. A site, the gift of the Republic and Canton of Geneva, adjoining the Secretariat, has been available for some time. That no definite steps have hitherto been taken to build has not been due to unwillingness, but to financial stringency. Fortunately, the greatly improved financial position of the League, of which I have already spoken, has made it possible to erect a hall. Document A. 10 and A. 10 (a) furnish a summary of the question and suggestions as to accommodation required. The matter was referred by the Fourth Committee to a sub-committee, which drew up a plan of work (Document A. 82). It will be noted that the plan provides for an open competition, for which architects of all countries may enter, and for an international jury, appointed by the Council, to adjudicate on the designs. In the Budget for 1925 is included the sum of 250,000 gold francs for preliminary expenses, and, as it is expected that the building will cost 4,500,000 gold francs, an annual vote of 1,125,000 gold francs for the years 1926, 1927, 1928, and 1929 is contemplated.

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