A.—7.

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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