A.—sB.

followed suit, and requests from other Governments to be allowed to nominate associate members were accepted. But this system of appointing associate members will not solve a difficulty which may occur in obtaining a quorum of the Committee. Under the new constitution the Health Committee was much reduced in numbers, and it is conceivable that illness or pressing engagements may prevent some of the members attending. The general regulations governing committees of the League provide for meeting a difficulty of this kind, and these regulations will 110 doubt be invoked. On learning that there was to be a preliminary discussion bet ween the Chairman of the Committee and the Secretary-General on the subject I was content to recommend the Council to await the result of such discussion. The problem will probably be solved by the appointment of a panel of deputy members, from which substitutes can be selected to replace full members when the latter cannot attend. I can conceive however, that Governments would desire that substitutes attending should be of the same nationality as those temporarily replaced, and that a selection from a panel of persons of nationals not already represented on the Committee would not always meet the position. However, the matter was not discussed in detail, and I will do no more than refer to it here. The Council accepted my report without passing any formal resolution. Permanent Central Opium Board : Report on the Statistics op Narcotics for the Year 1936, and the Work op the Board during 1937. Under the Conventions relating to Opium and Allied Drugs of 1925 and 1931, the Permanent Central Opium Board issues an annual report on its work and 011 the statistics gathered together during the preceding year. The report on the work of the Board for 1937 and on the statistics for 1936 has been issued as publication C.C.P. 212, and this was before the Council. No formal resolution was proposed, and the Council noted the contents of its Rapporteur's report (Document C. 25, 1938, XI). It will be noted that a member of the Board, Professor Gallavresi, an Italian, who was connected with various League activities for a considerable number of years, has died. It is not intended to replace him, as the whole Board is to be renewed at the end of this year. Work op the International Conference por the Repression op Terrorism. This Conference met in Geneva in November last for the purpose of examining and finalizing a draft which had been drawn up by a Preparatory Committee. As a result of the Conference two conventions were drawn up, one for the Prevention and Punishment of Terrorism and one for the Creation of an International Criminal Court. The first was signed by twenty-one Governments and the second by eleven Governments, and they remain open for further signatures until the end of May, 1938. There was no necessity for New Zealand to be represented at the Conference. The conventions were brought under the notice of the Council by its Rapporteur, who was the President himself, and the Council adopted his suggestion that the documents should be communicated to certain States non-members of the League, such States being the United States of America, Brazil, Costa Rica, Danzig, Germany, Iceland, Japan, and Liechtenstein (Document C. 50, 1938, Y). It was hoped that the Council would be able to complete its agenda at a meeting called for Saturday, the 29th January, but it did dispose of all items but two. The exceptions were the item entitled " Appeal of the Chinese Government " and " Alexandretta." The former had not so far been brought before the Council in a formal manner, but it was known that certain members of that body had been in consultation, and, further, there had been some comment in the press on the methods which were being applied to a discussion of the question. As is its custom, the Council first met in private and then in public on the evening of the 29th January, when the following items were considered : — Financial Reconstruction of Hungary: Loan issued in accordance with the Protocol of March 14th, 1924 ; and Free City of Danzig ; State Loan of 1927 and Municipality Loan of 1925. The report presented by the representative of Sweden deals exclusively with the action to be taken by the Council in replacing Mr. C. E. ter Meulen as Trustee of certain loans issued under the auspices of the League of Nations. Mr. ter Meulen, a banker of international reputation who had been connected with the League almost since its birth and was prominent in connection with the Brussels Financial Conference of 1920, had met with an accident in November which resulted in his death. For a brief appreciation of his services I would refer you to the Rapporteur's report (Document C. 17, 1938, Ha). The Rapporteur's proposal that M. A. W. A. Meijer be appointed to replace Mr. ter Meulen was accepted by the Council. International Loan Contracts Committee. The Rapporteur's report (Document C. 19, 1938, Ha), is concerned with the replacement of Mr. ter Meulen, referred to above, by Mr. H. A. van Nierop as a member of the Committee set up to examine the means for improving contracts relating to certain classes of international loans. This suggestion was approved by the Council. I need do no more than draw attention to the reappointment by the Council of Mr. Reuben Clark as a member of the International Loan Contracts Committee.

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