Agendum 240 15 May 1942

LEAGUE OF NATIONS-AUSTRALIA'S CONTRIBUTION

1. At a meeting held at Montreal in July, 1941, the Supervisory
Commission of the League of Nations, acting in accordance with
powers conferred upon it by the Assembly in 1938 and reaffirmed by
the Assembly in 1939, adopted the Budget for the year 1942.

2. In preparing the Budget the Supervisory Commission agreed:

(a) that it was of the greatest importance to keep up the
framework of the League and not to lose the accumulated experience
of twenty years of international co-operation and administration;

(b) that such activities as the League could usefully perform in
time of war should be maintained and encouraged, but that in other
respects the most drastic economies were needed, so that the
financial burden on Member States should not be increased.

3. The Supervisory Commission pointed out that the League of
Nations expressed in its three main institutions the aspiration
towards peace, social justice and the observance of international
law; and that it was continuing in the most difficult
circumstances work of great value to mankind. The Commission has,
therefore, urged Member States 'to accept willingly the not very
serious sacrifices which may be necessary to keep these ideals
alive during the period of the war'. It has been learnt from the
High Commissioner, London [1], that the United Kingdom Government
supports this view.

4. The League Budget has been framed to assess contributions to
Members at practically the same amount as for last year. A nominal
payment of one unit only has been assessed for German occupied
countries, while the assessments for China, Finland, France and
the Netherlands have been reduced by half. The expenditure budget
is 9.2% less for 1942 than that voted for 1941. Empire Governments
are in practice now bearing in fact almost the whole of the cost
of maintaining the League, apart from special contributions
offered for the International Labour Office alone. Australia's
contribution for the calendar year 1942 is approximately 34,000,
practically the same amount as that paid in 1941.

5. While the Commonwealth remains a member of the League its
financial obligations continue and the question for consideration
is whether payment of the contribution due under the League Budget
in 1942 is to be authorised.

6. As against continuance of Australia's membership of the League
it may be argued that in continuing support of the League of
Nations Empire Governments are supporting what is in effect a lost
cause, since it is clear that the League as an effective
organisation for international political co-operation has broken
down and its machinery for the settlement of international
disputes has proved inadequate. The aggressor nations all withdrew
from it and it remains substantially a British Commonwealth
organisation. The United States is not a member of the League. It
may be questioned whether at the present time the Commonwealth
Government is justified in paying an amount of 34,000 for the
practical purpose of merely keeping the League alive since, apart
from I.L.O. and the continuance of certain technical services, the
activities of the League are virtually negligible.

7. On the other hand the withdrawal of support of the League by
the British Commonwealth would result in its disappearance. Such a
withdrawal would leave the British Empire and its Allies open to
the criticism that they were not prepared to back the organisation
which stands for the ideals expressed in the report of the
Supervisory Commission (see para.3 above) for the maintenance of
which the United Nations are fighting. Withdrawal of support of
the League would provide the enemy with a useful piece of
propaganda.

8. Apart from these considerations the League has performed useful
service in the field of international co-operation in social and
economic problems. It has also performed useful work through the
subsidiary organisations of the I.L.O. and the Permanent Court of
International justice, the former of which held a conference in
November last at which a resolution was passed concerning the part
to be played by the I.L.O. in post-war reconstruction. The
Permanent Court of International Justice is an institution which,
although not functioning at present, is worth retaining.

9. It is recommended that approval be given for payment of
Australia's contribution to the League Budget for 1942. [2]

J. CURTIN