With reference to your letter of the 27th instant¹ regarding the reduction of expenditure on the League of Nations and the International Labour Office I am afraid I can make no new and helpful suggestions.

The proposal to close down the permanent offices here is in accord with the spirit which has maintained the financial discrimination against Geneva. On the other hand, as the staff and the salaries and allowances of the officers at Geneva are so inadequate as to hold no prospect of any of the sought-for economies there is a great deal to be said for the proposal if it in any way reflects the Government's political attitude towards the League. It would be a matter for your consideration how much the net saving would be.

In the circumstances here the question is exclusively political.²