Date: 17 October 1932
Location: Geneva
Speaker: Aga Khan III
Source: Speeches of Aga Khan III – K K Aziz
Full Text
The problem of retrenchment – the financial position of the League demands serious consideration – two options: reduction in salaries or a curtailment of activities – India’s views on the solution.
Certain questions of vital importance for the world have this year fallen outside the scope of the Assembly. Nevertheless, one question remained, upon which, if it were to discharge its responsibilities, it was incumbent upon the Assembly to take resolute action. I refer to retrenchment, which the League in common with the rest of the world must face. I do not wish to give countenance to the somewhat alarmist views which have found expression in certain quarters, but the financial position of the League is unquestionably such as to demand its most serious consideration.
I should like to hope that the appeal to those States which are in arrears with their contributions will bear fruit. But, as the delegate for India said in the Fourth Committee, there is no escaping the conclusion that there are only two practicable alter natives before us – either a reduction in salaries on such a scale as to secure really substantial economies, or a curtailment of the activities of the League.
It has now become clear that no decision of the Assembly can secure a reduction of salaries on anything approaching the scale that the situation demands. We must therefore face the alterna tive, a curtailment of the League’s activities. When I use the word “curtailment” I do not mean necessarily an actual cessation of work already undertaken – a desperate expedient to which I do not think we need yet have recourse – but a check in the pro gressive expansion of the sphere of its undertakings.
I deeply regret that it should be necessary to have recourse to this expedient. Growth is as natural to the League in the early stages of its existence as to the adolescent child, and a check to that development is as unnatural and harmful as is the check to the growth of the child. This all Members of the League will recognise with equal concern.
But there is a special aspect of the question, on which, on behalf of India, I feel I should speak very frankly. I deplore the necessity for any curtailment of the League’s activities, but especially do I deplore, from the point of view of India, the failure to secure a reduction of salaries, which would have saved us from that necessity.
I cannot contemplate without anxiety the effect upon opinion in India of the knowledge that, alone of public administrations, the League Secretariat may remain almost unaffected by the universal stringency.
Source: Verbatim Record of the Thirteenth Ordinary Session of the Assembly of the League of Nations, Twelfth Plenary Meeting, Monday, October 17th, 1932, at 10.30 a.m., Geneva, 1932, p. 4.
The Assembly was debating the report of the fourth committee on the financial questions. After a short discussion under the presidentship of M.
Politis, the following draft resolutions proposed by the fourth committee were put to the vote and adopted:
I. GENERAL QUESTIONS. 1. The Assembly, in virtue of Article 38 of the Regulations for the Finan cial Administration of the League of Nations, finally passes the audited accounts of the League of Nations for the thirteenth financial period, ending on December 31st, 1931. 2. The Assembly, In virtue of Article 1 7 of the Regulations for the Financial Administration of the League of Nations:
Passes for the financial period 1933 the budget of the League of Nations to the total sum of 33,429,132 gold francs; And decides that the aforesaid budget shall be published in the Official Journal. 3. The Assembly, in conformity with the recommendation of the Com mittee on the Allocation of Expenses, fixes at ten the number of units assigned to Turkey in 1933, and at three that assigned to Iraq, in the scale for the allocation of the League’s expenditure. 4. The Assembly adopts the conclusions of the various reports of the Supervisory Commission submitted for its consideration, except in regard to the question referred to in Chapter V of the, present report. 5. The Assembly appoints to the Supervision Commission for the period ending on December 31st 1935: as regular member, His Excellency M. C.
Parra-Perez; and as substitute members, M. G. de Ottlik and His Excellency M. Jean de Modzelewski. 6. The Assembly adopts the present report of the Fourth Committee.
II. RA. TIONALIZATION AND CoNCENTRAT ION OF THE SERVICES OF THE SECRETARIAT AND OF THE INTERNATIONAL LA.BOUR OFFICE.
The Assembly, on the basis, among others, of the proposals submitted to it by the Supervisory Commission, requests the latter to proceed to a detailed study of the possibilities of effective economies in the expenditure of the League of Nations by means of a technical concentration of its activities and by any other means of reorganisation and rationalisation in the services of the Secretariat and of the International Labour Office, on condition, however, that these measures should in no way hamper the essential functions of the League.
The Assembly requests the Governing Body of the International Labour Office, which has already undertaken studies and adopted measures in the direction, to lend its assistance with a view to the study as regards the Inter national Labour Office and its co-operation with the Secretariat.
For the purposes of this examination, the Supervisory Commission may enlist the assistance of special experts.
The Supervisory Commission is requested to submit to the next ordinary session of the Assembly a report on the results of this examination.
It is understood that posts which, as a result of this examination, may be regarded as superfluous may be abolished by the Secretary-General and before the said session.
Nevertheless, in the case of larger readjustments the Secretary-General should first submit the question to the Council for approval.
The Assembly requests the Secretary-General to examine, in each case in which an existing contract comes to an end or a post becomes vacant for any other reason, whether it is possible to postpone the appointment of new officials in order to permit of a detailed examination of the necessity to the League’s activities of the duties in question.
Ill. REDUCTION OF SALARIES AS REGARDS FUTURE CONTRACTS.
The Assembly decides that, for a period of two years from October 15th, 1932, (1) All future contracts, whether contracts for the retention of the services of officials of the Secretariat, the International Labour Office or the Registry of the Permanent Court of International Justice whose appoint ments expire or contracts with new officials, shall be made on the basis of a 10 per cent reduction of the existing salary scales of the categories of officials in question (such reduction applying also to the increments) and shall provide that the Assembly shall be entitled unilaterally to change the salaries fixed thereby; (2) Members of the staff of these organisations, on promotion to a higher grade, shall be placed upon rates or scales of salary lower by 10 per cent than those now payable to the grades in question, except that the initial salary payable after such promotion shall not be less than the salary received prior to promotion; (3) It is understood that the above provisions will apply neither to ternporary staff engaged on short-term contracts and serving on rates of pay already reduced, nor to officials who receive a salary equal to, or less than, 6,500 francs per annum.
Iv. STAFF PENSIONS FUND.
The Assembly, Takes note of the report of the Administrative Board of the Staff Pensions Fund for the year 1932; Sanctions the admission, in accordance with the recommendation of the Board, of eight officials of the Secretariat whose applications for membership are received after December 31st, 1931; Adopts the report on the valuation of the Fund as submitted by the Fund’s consulting actuary; And decides:
That the assets of the Provident Fund shall be transferred to the Pensions Fund subject to leaving with the Provident Fund a sum in cash equal to the balances of the accounts of its members and an appropriate share of the Death and Invalidity Fund; That any shortage due to the depreciation of the assets taken over from the Provident Fund shall be amortised, if necessary, after the period of thirty years fixed by Article 7 (b) of the Regulations; That the contribution of the League to the Pensions Fund for 1933 shall be 9 per cent of the pensionable emoluments of the members of the Fund; That its contribution in respect of arrears due for service prior to January 1st, 1931, shall be at the same rate of contribution as was fixed for 1931; That no credit shall be inserted in the budget for 1933 to supplement the contributions paid by officials of branch offices in depreciated currencies; And that the League’s contribution to the amortisation, in accordance with Article 7 (b) of the Regulations, of the deficit in the Pensions Fund due to the application of the Regulations to officials already in the service onJ anuary 1st, 1931, shall be 400,000 Swiss francs for 1933.