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importance as one delegation after another brought before the Conference additional commodities in which there was alleged to be overproduction. In the plenary meeting at the commencement of the Conference the leader of the United Kingdom delegation spoke as under :— " As regards quotas, the United Kingdom delegation consider that a clear distinction should be drawn between import quotas arbitrarily imposed by the importing country as an additional measure of protection for the home producer, and production or market quotas established in pursuance of international agreements to regulate production or marketing so as to restore and maintain a remunerative level of wholesale prices for producers in all countries. The United Kingdom delegation are strongly in favour of the progressive abolition of all arbitrary import quotas. On the other hand, the disastrous slump in the prices of certain primary commodities, particularly of agricultural products, raises special problems for which in their view the most practical solution is to be found in international agreements for the better regulation of production and marketing by the countries principally concerned. " His Majesty's Government in the United Kingdom are themselves engaged in promoting the regulation of supplies of several food products. They would be prepared to co-operate in the regulation of wheat supplies and supplies of other foodstuffs on the part of the principal food exporting countries with a view to restoring and maintaining a reasonable level of prices. They are also prepared to consider the question of co-operation in schemes of regulation in regard to other commodities, but in each case it seems to them essential that the scheme should be put forward with the support at least of a large proportion of the producers concerned and should contain adequate provisions for safeguarding the interests of consumers in the importing countries." A reference in general terms to the possible limitation of New Zealand exports was made by the Prime Minister in his opening statement to the Conference ; this is reproduced as an appendix to the present report. At an early stage of the sittings of the Economic Commission the French delegation submitted a proposal in the following terms : — " All are agreed that the disequilibrium between the production and consumption of agricultural products and raw materials is at the root of the crisis. The drop in prices which resulted has deprived two-thirds of the population of the world of the greater part of their purchasing-power. " A readjustment between supply and demand can be brought about only by a better organization of production and the markets on an international scale. " This method, which has given satisfactory results in the form of private agreements when properly applied, was expressly recommended by the technicians and experts at Geneva. " In the absence of concerted action by the Governments, who can alone reconcile all the interests at stake, it has not so far given the results expected where agricultural products and raw materials are concerned. " From past experience the French delegation considers that no better practical method exists for restoring order in the present anarchy of production and trade. It therefore considers that the Conference should examine with care the possibility of agreements between Governments concerning certain products in regard to which their intervention seems necessary, and should take action to ensure the conclusion of such agreements. " Indeed, international measures for the organization of the production of certain basic products affecting large classes of producers cannot fail, by the rapid rise of prices which will ensue and the resulting increase in the purchasing-power of the producers, to restore to industry former markets and to offer new possibilities for the employment of labour. " They will further make it easier for debtors to meet their financial obligations. " Finally, the prospect of a return to more normal conditions of production and exchange will strengthen the efforts of the Governments to reduce the obstacles to international commerce. " It is essential to make a choice of the products to which the first effort at organization must be applied. The French delegation considers that these should fulfil the two following conditions : they should affect the greatest possible number of producers ; they should give the maximum possibility of regulation on international lines. " Consequently, the French delegation proposes the examination and conclusion of agreements between Governments on the best methods of regulating the production and exchange of products ; the following are suggested : Wheat, wine, timber, cotton, wool, coal, copper, silver. " It further proposes that this problem be placed at the head of the agenda for the discussions of the Economic Commission." The French proposal was advanced by M. Sarraut (Minister of Colonies) with a statement in which the root cause of the world's economic distress was described as " anarchy of production " ; " tariffs, quotas, prohibitions, restrictions, &c., were symptoms and not the causes of the disease " ; and " normal conditions " could only be restored by inter-governmental agreements for regulating the supply of basic products. A considerable measure of support was at once forthcoming for the proposal in general terms, and delegations proceeded to suggest additional commodities for consideration. Thus the first list of eight products was supplemented by adding

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