Manawatu Evening Standard. MONDAY, SEPT. 16, 1935. THE LEAGUE’S FINANCES.

Manawatu Standard, Volume LV, Issue 247, 16 September 1935, Page 6

Manawatu Evening Standard. MONDAY, SEPT. 16, 1935. THE LEAGUE’S FINANCES.

In view of file fact that the cost of the League of Nations m recent years lias been a subject of complaint, the statement of the Secretary-General submitted to the Assembly last week is of more than passing- interest. A policy of careful economy, according to M. Avenol, has enabled the League to conclude its year without a deficit; a greater sum has been paid off the arrears of defaulting States, and the unit contribution of each State has been smaller. The financial difficulties facing countries m recent years was reflected in the League’s finances, and economies became a pressing matter. The result was successive reductions in the annual estimates of expenditureon the general work under the control of the Secretariat, on the Permanent Court of International Justice, and on the. International Labour Office. From 1932 to 1935 the total cost has been cut down to what has been declared a reasonable minimum. The result was a succession of surpluses which has been maintained in the present year, and for 1935 there was a reduction in the League's estimated cost at par of about £7006. That was not a large sum in relation to a total Jiudget of £1,200,000, but it was at least indicative of a desire to meet the wishes of the nations for relief. Now according to M. Avenol, in reply to the French delegate, with a reduction in expenses of IT per cent., the contributions of members for 1936 have been reduced by more than TO per cent., and lie makes the important point that if contributions are forthcoming more regularly further reductions will be possible. The arrears owing by a number of States have been a vexed question for the Secretariat. . China has been among the worst of the defaulters, and after pressing for clemency was granted an arrangement by which her arrears would be paid in instalments over a twentyyear period. At : the Assembly last year Siam excused herself for not being able to pay at the rate stipulated, while difficulties were noted among the Latin American States. Furthermore, Germany and Japan’s withdrawal meant the loss of contributions. It is a healthy sign that meas ured in Swiss francs the payment of arrears has : risen from 3,800,000 to 6,040,000. Not only has the Budget been strengthened by this accretion of income, but the countries themselves must have financially improved to make the payment. In a world still beset with economic difficulties that fact is worthy of note. In spite of the defection of two major States, the accession of Russia and Afghanistan has to some extent compensated for the loss of revenue. At first Russia was assessed on the basis for Britain, the largest contributor with 105 units, but eventually she was granted the lower assessment ruling for France and Germany, without .prejudice to the future after 1935. Since 1925 contributions have been based upon a system which has not infrequently met with sharp criticism, and last year the Assembly postponed the question of revision. While criticism has been levelled against the League’s exnenditure —and it is certainly debatable if all its ramifications have been essentially a League undertaking—the fact is important that the annual cost is less than that of a single cruiser, lhe expenses of the Disarmament Conference were unusually large, but this was one of the League s major activities and in accordance with its great ideal to preserve international peace, and was accepted as essential. Another large outlay has been occa-

sioned by the erection of palatial buildings at Geneva as the League’s permanent home, but the Treasurer justified it with the remark that if the total cost of about one million pounds for the building sounds a lot, it must be remembered that it is the international town hall for fiftyseven nations, and so compares well with the cost of city town halls. If the League is to remain the abiding hope of the world for international peace, then the nations must not cavil at the legitimate cost of its very essential functions.