Your telegram 19th December League of Nations Assembly. [1] In
budget discussion McDougall [2] stressed need for further
reduction in Secretariat expenses particularly in regard to
political activity. Chairman of Supervisory Commission announced
that in addition to 33 1/3% cut in total expenditure, whole staff
of Secretariat and of International Labour Office had voluntarily
agreed to accept cut ranging from 2% on lowest salary up to 20% on
highest allowance. No definite estimate of this saving was
available but will probably exceed 1,000,000 Swiss francs.

Chairman also announced policy reduction of staff would be
continued. Hence total reduction will be substantially greater
than in budget referred

to in Prime Minister's telegram of 30th November. [3] In the
discussion on allocation committee McDougall drew attention to the
proposal to reduce Argentine from 23 units to 21 and urged such a
reduction was difficult to justify on basis of comparisons between
Australian and Argentine ability to pay. As result, fourth
committee decided to regard new scale as only to operate for one
year instead of three.

In council election there was no contest. South Africa, Bolivia,
Finland elected to seats previously held by New Zealand, Bolivia
and Sweden. Assembly decided to maintain additional two seats and
reelected China and elected Egypt. Finnish question: no votes in
assembly but, following joint declaration by Sweden Norway and
Denmark, by the Baltic states and by Bulgaria of intention to
abstain, and speeches of condemnation of Russia by Argentine,
United Kingdom, France and some other State members, resolution as
forecasted in McDougall's telegram from Geneva [4] was carried
without opposition. Council met immediately after assembly
adjourned on December 14th and unanimously decided on expulsion of
Russia. China, Finland, Greece and Yugoslavia abstained from
voting, France made strong statement condemning Russian aggression
and comparing this to German action; United Kingdom took similar
line.

McDougall realised you would have liked fuller information from
Geneva but owing to extreme rapidity of procedure and the fact
that he was alone could not send more adequate message.