FINANCIAL BASIS

Evening Star, Issue 22974, 3 June 1938, Page 12

FINANCIAL BASIS

WORK OF THE LEAGUE END OF VAN ZEELAND PLAK The committee set up to examine the structure and functions of the economic and financial organisation ,of the League of Nations began its work on May B, says the ‘ Manchester Guardian/ It may safely be said, after the discussion,'that no more will be heard of the Van Zeeland plan. That plan waa not once mentioned, and the line taken by nearly all the speakers, notably by Sir Frederick Leith-Ross, • was fundamentally opposed to it on important points. At one time the British Government intended, it is. understood, to propose that the Van , Zeeland • plan should be taken by the .committee basis of discussion, but evidently if this was so the British Government has thought better of it, tor the effect of the plan would have been to weaken the economic and financial organisation of the League. M. Avenol, Secretary-General of the League, gave a history of the organisation, and showed that , whereas it was originally intended that it should be a single commission dealing with both, financial problems and economic questions, it had become necessary to divide it into two committees—the economic committee and the financial committee.; There had, nevertheless, been attempts to react aganst this separation and attempt ;to co-ordinate them. The specialisation of the economic and financial committee had, however, become more pronounced, but, there existed problems could not be classed m either category of finance or of mic or commercial relationships.

AN ELASTIC BODY. ; Se would not make any definite suggestion, but would emphasise that there was a tendency towards the setting up of a body of sufficient elasticity, to undertake the study of various complex questions which might arise, and would be outside the competence coxa of the financial and of the economic committee as they at present; existed. The chairman (Mr Bruce, Australia! proposed that the should consider the following three points:—

(1) What duties might be entrusted to the economic and financial organisation; 'in other words, apart from Questions definitely coming within the field of action of the Financial Committee or the Economic Committee, what other, problems might be considered ? . ■ ■■ (2) What machinery should be mam? tained or set up for the carrying out of these duties? If the Economic Com* mittee and the Financial. Committee 1 were maintained, would it not prove necessary to consider the setting up of other committees? ; ; . - (3) What internal organisation of the Secretariat should correspond to this machinery? Are the present section* of the Secretariat, the financial section and the economic intelligence service* to be maintained, or should the present state of affairs be M. Komarnicki (Poland) insisted upon the necessity of keeping in mind the mandate of the committee set up ( by the Assembly whose resolution had been the widening of “ the bases of international co-operation economic and financial spheres.

CHANGES IN STRUCTURE. Sir Frederick Leith-Ross (Great Britain) said that it must not be forgotten that when formulating its .resolution the Assembly had in muid the possibility of obtaining, by means or certain changes in structure., the cooperation of States that remained-out-side the work of the League. Prosenti political circumstances, however, out not give much hope for widening in this direction. He, therefore, coula not enthusiastically support the idea of framing any important changes in tne structure of present organisation, ir the work of the existing committee. had not always been as .efficient M might be desired, it wan often for reasons for which they were. not .responsible. ' Their proposals went before the Council and the Assembly, and ranlU depended ultimately on the will of the Governments, Political difficulties wer# usually the obstacle. , He supported the idea of M. Brunet (France) that the Economic Committee and the Financial Committee should be maintained; the idea of a mixed coordination committee put forward vJi M*. Brunet deserved .attention.