A—7.

There was deduced from this that, while it was desirable for each nation to develop fully its own resources, international action was necessary to make available to mankind the means of improved standards of life, but that so long as " economic development is encased in a military strait-jacket" it will be impossible to provide the food, clothing, housing, health, and leisure that technical progress in this century had brought within the people's grasp. The recession was attributed to three main causes: a decline on the stock exchanges in the United Kingdom and the United States; a rapid rise in wholesale prices in many countries, with the cost of living in pursuit; and the collapse of prices of a number of raw materials which had been forced to unduly high levels by speculation. I elt worst in the United States, the recession had not affected other countries in a major degree, and several considerations supported the belief that the outlook would not be discouraging " if the spirit of international warfare could be banished from economic and political relations " In the Director's opinion, however, optimism would be foolish. "No secret of intense warlike preparations is made in a large number of nations. Progressively the whole national life and the activity of every individual is being subordinated to the requirements of the State in the event of conflict. . . . In such circumstances, vast sums which might otherwise have been profitably devoted to fighting sickness, to life, to sweetening old age, to adding a cubit to the knowledge and culture of mankind, are diverted to the destruction of what man has so painfully acquired or created by the sweat of his brow, and to the exaltation of death by the perfection of every method available for extinguishing human life with all the thoroughness and horror that science can devise. What was last year a darkening shadow now threatens to blot out the light from the whole earth." _ The report of the Director and the discussion thereon is regarded as one ox the important aspects of the Conference proceedings. The debate on the report was extremely interesting. Sixty-nine delegates took part in the debate, including the two New Zealand Government and the workers' representatives, the text of the Government's delegates' speeches being as follows: — Summary of Speech by Mr. Thorn. There are only one or two points in the Director's report to which I propose to refer, but I should like to express a keen appreciation of the breadth of vision, the boldness of expression, and the constructive attitude which are characteristic of this report. These are qualities that are greatly needed in the world to-day. I wish also to express a special regret at the Director's forthcoming departure, both because of the services that he has rendered to the International Labour Organization and because we had been hoping that he would soon be paying an official visit to New Zealand. At the same time, I should like to say that the New Zealand Government will be glad to extend to his successor the same invitation to come and help us strengthen public interest in the work of this Organization. , If there is one thing which the Director's report drives home, it is the impossibility of reconciling the present trend of world affairs with the programme of social betterment for which this Organization stands. If the international situation continues to deteriorate, our efforts to improve the lot of the workers throughout the world will be doomed to failure. Armaments and social progress are conflicting purposes, and the contest is an unequal one. There is an appalling disparity between the enormous sums spent on preparation for war and the miserable pittance available for organizing peace. Thousands of millions of pounds are being spent on armaments, and a paltry £1,000,000 a year on the League of Nations and the International Labour Organization combined. We cannot in this Conference attempt to deal directly with the problem, of armaments; but we can at least express our conviction that something must be done to make the contest between the forces of destruction and the forces of social progress a little less unequal. It is up to us to insist that some fraction of the sums now spent on armaments should be devoted to the cause of international collaboration. There is a vast amount of useful work that the International Labour Office could do if, instead of a mere £410,000 a year, it had at least £1,000,000. If war is to be avoided, we must find other ways of solving the world's problems. We must strengthen the constructive agencies that are preparing peaceful solutions of the underlying difficulties, and above all we must intensify our efforts to promote that social justice and social security which alone can form a sound foundation for peaceful international relations. There is no truer phrase in the Director's report than that in which he recognizes that, the International Labour Organization could not have held its own in the face of general turmoil had it shortened sail or sought temporary refuge in inactivity. Now is the time when we must forge ahead and expand the work of the Organization. The fact that its budget has been limited in the past is no reason why the° only organization available for promoting international social progress should be similarly restricted in the future, We in this Conference, bearing in mind the present critical situation of the world and the urgent need for services such as this Organization alone can render, should urge the Director of the International Labour Office and the Governing Body to be bold in conceiving, in budgeting, and in executing their plans for achieving the objectives for which the International Labour Office was founded.

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