INTERNATIONAL LABOUR OFFICE
STUDIES AND REPORTS
Series O (Migration) No. 7

Technical and Financial
International Co-operation
with regard to

Migration for Settlement

Technical Conference of Experts

GENEVA
1938
Published in the United Kingdom
For the INTERNATIONAL LABOUR OFFICE (LEAGUE OF NATIONS)
B y P , S. KING & S O N , Ltd.
Orchard House, 14 Great Smitli Street, Westminster, London, S.W.l

N" 10471.—Printer: OFFICE DE PUBLICITÉ (Ane. Établiss. J. LEBÉGUE & C "

16, rue Marcq, Brussels (Belgium)

CONTENTS
Page
vu

PREFACE

I
REPORT OF THE INTERNATIONAL LABOUR OFFICE
INTRODUCTION

3

CHAPTER I : General Statement of the Problem
The Need for Organisation
Existing Settlement Organisations
Official Settlement Institutions
Private Settlement Organisations of a Social Character
Private Settlement Organisations of a Commercial Character...

9
9
12
12
15
20

CHAPTER I I : Possible Forms of Action
Information and Assistance for Independent Settlers
Financing of Settlement Schemes
1. Measures to Reduce the Cost of Settlement
Recruitment of Settlers
Consular Fees
Transport Costs
Customs Duties
Cost of Maintenance after Arrival
Taxation
Acquisition of Land
General Development Works
2. Measures respecting the Settlement Organisation's Capital
Requirements
Official Settlement Organisations
Private Settlement Organisations
3. Measures respecting the Settlers' Capital Requirements
Sale of Settler's Property before Departure
Transfer of the Settler's Assets
The Settler's Opportunities for Increasing his Resources b y
Working for Wages
4. Measures respecting Loans the Settler may be granted b y
Third Parties
Technical Preparation

34
34
37
39
39
41
42
45
46
46
48
50
52
52
54
57
58
60
61
63
66

—

IV —
Page

CHAPTER I I I : Summary

and Conclusions

Statement of t h e Problem
Measures Open t o the Governments Concerned
Information a n d Assistance for Independent Settlers
Financing of Settlement Schemes
Measures t o Reduce the Cost of Settlement
Measures respecting t h e Settlement Organisation's Capital
Requirements
Measures respecting the Settler's Capital Requirements
Measures respecting Loans the Settler may be granted by Third
Parties
International Collaboration
The Problem of Financing Transfers
Financing of L a n d Settlement with Capital from Countries other
than those directly concerned

69

69
73
73
74
76
77
80
80
82
82
83

II
TECHNICAL CONFERENCE OF E X P E R T S
A. Gennai Discussion
Speech by Mr. Ruiz-Guiñazú (Argentine Republic)
Speech by Mr. W. Mazurkiewicz (Poland)
Speech b y Mr. Pinheiro Machado (Brazil)
Speech b y Mr. J . Kitaoka (Japan)
Speech b y Mr. C. Parra Perez (Venezuela)
Speech by Mr. J . Brablec (Czechoslovakia)
Speech b y Mr. V. Dragoutinovitch (Yugoslavia)
Speech by Mr. J . A. A. Hartland (Netherlands)
Speech by Mr. Gastelu Concha (Ecuador)
Speech b y Mr. A. Carbonell Debali (Uruguay)
Speech b y Mr. E . Komers (Austria)
Speech by Mr. Costa du Reis (Bolivia)
Speech b y Mr. L. de Böszörmenyi (Hungary)
Speech by Mr. Arocha (Venezuela)
Speech b y Mr. J . M. Yepes (Colombia)
Speech by Mr. F . Garcia Oldini (Chile)
Speech by Mr. H . d'Hartoy (Dominican Republic)
Speech by Mr. P . A. Feldscher (Switzerland)

91
91
98
104
106
106
112
113
114
115
117
118
119
120
120
123
126
129
130

B. Report of the Conference

132

C. Conclusions and Resolution of the Conference

156

— V —

APPENDICES
Page

I. List of Representatives
II. Plan of Discussion
III. Information supplied by Delegates to the Conference

167
170
175

PREFACE

A Conference of Experts on international technical and financial
co-operation with regard to migration for settlement met at the
International Labour Office from 28 February to 7 March 1938.
It was attended by representatives of ten immigration countries
and eight emigration countries, including Argentina, Austria,
Bolivia, Brazil, Chile, Colombia, Czechoslovakia, Dominican
Republic, Ecuador, Hungary, Japan, Netherlands, Peru, Poland,
Switzerland, Uruguay, Venezuela and Yugoslavia.
The Governing Body of the International Labour Office, the
Economic Committee of the League of Nations and the Economic
and Financial Sections of the Secretariat were also represented.
The Conference, which was intended to ascertain how technical
and financial international co-operation for the settlement of
groups of immigrants on the land, especially in Latin America,
might be facilitated, concluded its proceedings by adopting
unanimously a report embodying its proposals, as well as a
resolution.
The main documents concerning the work of the Conference
will be found in the present volume. The first part consists of
a report prepared by the International Labour Office. The second
part is divided into two sections, the first section containing a
detailed record of the general discussion and the report adopted
by the Conference being reproduced in the second section. The
conclusions and the resolution included in the latter are given
again at the end of the report for the convenience of the reader.
Of the three appendices at the end of the volume, the first
includes a list of delegates to the Conference, the second gives the
list of points which served as the basis of the discussion on special
problems arising from the question on the agenda, while the
third contains documentary information submitted by certain
delegations.

I
REPORT OF THE INTERNATIONAL
LABOUR OFFICE

INTRODUCTION
At its Eighty-first Session, held in Prague from 6 to 9 October
1937, the Governing Body of the International Labour Office
decided to convene on 28 February 1938, at Geneva, a technical
conference of experts to study the problem of " technical and
financial international co-operation with regard to migration for
settlement. "
This decision was taken in pursuance of a resolution adopted
by the Conference of American States Members of the International Labour Organisation, held at Santiago-de-Chile in January
1936, in which the Governing Body was requested to " have
special enquiries made in connection with migration from Europe
to America ", covering the problem " in its various aspects—
individual migration and collective recruiting, spontaneous and
organised migration—particularly from the standpoint of the
connection between immigration and colonisation, whether private or official, and with special regard to the manner in which
preparation is made for the reception of immigrants. "
On most of the questions referred to in this resolution the
enquiries asked for were not entirely new to the Office, and
fitted in with the various lines of research already undertaken.
This is true, for instance, of the problem of the migration of
wage-paid workers, for the International Labour Organisation
has from the beginning devoted attention to the problem of the
protection of workers who leave their own countries to seek
employment abroad. It is not necessary to describe here the
work done in this field, but it may be mentioned that at the time
when the Governing Body was to discuss the effect to be given
to the resolutions of the Santiago Conference, the International
Labour Office had just completed a report dealing with the
whole subject.1 This report was submitted to the Twentysecond Session of the International Labour Conference in June
1
The Migration of Workers. Recruitment, Placing and Conditions of
Labour. Studies and Reports, Series O (Migration), No. 5, Geneva, 1936.

— 4 —

1936, and the Governing Body, in order to give effect to a resolution adopted by the Conference, decided at its session of
February 1937 to place on the agenda of the Twenty-sixth
Session of the Conference, to be held in June 1938, the whole
subject of the recruiting, placing and conditions of labour of
migrant workers. The question is thus approaching the stage at
which final decisions will be taken.
As regards migration for settlement, the work of the Office
was not so advanced when the Governing Body discussed the
resolution of the Santiago Conference. A number of studies,1
still fragmentary in character, had indeed been published as
part of the enquiry into the collaboration of the three elements
of production—labour, land and capital—which had been undertaken in response to a request of the Permanent Migration
Committee. But these monographs, which dealt with the problem of settlement in a certain number of countries, were intended
merely to prepare the ground with a view to possible action at a
later date. The resolution of the Santiago Conference, originating, as it did, in countries which had for a long time past provided
an outlet for population movements, and confining the problem,
as it did, to migration from Europe to America, gave the work of
the Office new impetus and a more concrete character. At its
session of April 1936, the Governing Body decided that a thorough study of the problem should be undertaken from this
angle, and accordingly convened a meeting of its Migration
Committee for November. This decision was noted with satisfaction by the International Labour Conference at its session in
1936, when it adopted a resolution welcoming " the fact that
this large and important problem " was " to be systematically
studied " and expressing the hope that the work of the Migration
Committee would lead as soon as possible to conclusions which
could be laid before the Conference. Immediately after the
1
The studies were published in the International Labour Review : " Openings for Settlers in Argentina " by Dr. Enrique Siewers, in Vol. X X X ,
No. 4, October 1934; " Land Settlement in Brazil " b y R. Paula Lopès, in
Vol. X X X I I I , No. 2, February 1936; " T h e Levant States under French
Mandate and Problems of Emigration and Immigration " by M. Berenstein,
in "Vol. X X X I I I , No. 5, May 1936; " Migration and Settlement in Australia,
New Zealand, and Canada " by D. Christie Tait, in Vol. X X X I V , No. 1,
July 1936; " Land Settlement in Chile " in Vol. X X X I V , No. 3, September
1936; " T h e Problem of European Settlement in the Belgian Congo " by
Jacques Legouis, in Vol. X X X I V , No. 4, October 1936; and " Japanese
Emigration " by Toru Gishima, in Vol. X X X I V , No. 5, November 1936.

— 5 —
Conference Session a mission of enquiry, composed of t h e late
Mr. Fernand Maurette and Mr. Enrique Siewers, was sent t o
South America, where it visited Brazil, Argentina, and Uruguay
and studied, with t h e collaboration of t h e national administrations, the possibilities of immigration for settlement in those
countries. The report of this mission, 1 together with a general
report on migration for settlement compiled by t h e Office, was
submitted t o t h e Migration Committee in November 1936.
A study of t h e problem on t h e basis of these two reports led
the Committee to the conclusion t h a t there exists to-day, in a
certain number of immigration countries, an attitude of mind
favourable t o the resumption of land settlement by immigrants,
but t h a t such a resumption is being held up largely by t h e difficulty of financing the transport and establishment of settlers.
The solution of the problem, the Committee believed, would be
greatly facilitated by international collaboration, and it therefore adopted a resolution requesting the Governing Body t o
convene a conference of experts on the subject of migration with
a view to settlement as soon as a number of Member States
sufficient t o achieve useful results had expressed a desire for such
a conference.
Giving effect to this resolution, the Governing Body first
decided to ascertain whether a sufficient number of States were
prepared t o t a k e p a r t in t h e proposed conference. I t also
expressed the opinion t h a t the number need not be very great
provided t h a t the representative countries from the point of view
of emigration and immigration sent experts prepared to approach
the problem with a view t o t h e attainment of practical results,
particularly as regards certain Latin-American States which
had shown their interest in the question of the immigration of
settlers.
The replies received in response to the enquiries m a d e by t h e
Office in execution of t h e decisions of the Governing Body were
submitted a t t h e Eighty-first Session and were considered sufficiently favourable t o justify the convening of t h e conference.
Acting upon the advice of t h e Migration Committee, t h e Governing Body decided, at t h e same session, t o define t h e subject of
t h e conference as follows : " The problem of technical a n d finan1
This report appeared in the International Labour Review, Vol. X X X V ,
Nos. 2 and 3, February and March 1937, under the title " Immigration for
Settlement in Brazil, Argentina, and Uruguay."

_

6 —

cial international co-operation with regard to migration for
settlement. " It also instructed the Office to prepare a report on
the subject.
*

*

*

As is indicated by its title, the wording of which reproduces
the terms of reference of the conference, the present report does
not claim to be a complete study of the problem of migration for
settlement. The resumption of such migration depends on a
large number of factors. If a farmer is to decide to leave his
country and settle in another, he must be attracted by the possibility of creating for himself, by his labour, a better situation
than he can hope to attain in his own country. If no such
possibility is offered, he will not emigrate, and neither the emigration nor the immigration country will have any reason to
encourage him to do so. On the contrary, they may regard it as
their duty to discourage persons tempted to settle abroad by
illusory hopes. From the social point of view, indeed, the
development of migration for settlement would seem to be desirable only in so far as it promises adequate conditions of life to
those who engage in it.
But concern for the fate of the settler is not the only deciding
factor in the moulding of national policy with regard to migration and settlement. The attitude of an immigration country
is determined in a large measure by its general economic policy,
which in turn depends on the prospects of finding new markets
for the increased production that would result from an extension
of land settlement. Or it may prefer, for reasons quite unrelated
to the question of markets, to develop its economic resources
gradually, relying on the natural increase of its own population,
rather than rapidly and with the help of large numbers of immigrants. Or again, racial and political factors may play a part in
the determination of demographic policy, and may even dictate,
as regards immigration in general or certain currents of immigration, very different measures from those suggested by purely
economic considerations.
An emigration country, on the other hand, will adopt an active
policy for the encouragement of migration for settlement only if
it regards this as being in the national interest. As a rule, demographic, economic, and social considerations will predominate in
the shaping of policy, though it may happen that a country

— 7 —

whose immediate interests would seem to call for the emigration
of its surplus population prefers for political reasons, to which
it attaches greater importance, to oppose such emigration.
These various factors, which go a long way to account for the
slowing down of the currents of migration, and particularly of
migration for settlement, are not the subject of the present
report. National policy with regard to emigration and immigration for settlement is the affair of the States concerned, and
the problem of encouraging these movements by international
co-operation can be taken up only when the national governments
have formulated their policies. International co-operation cannot begin until the emigration and immigration countries are
ready to organise it, and the present report assumes, in approaching the question of international co-operation, the existence of
this readiness. It assumes that the countries directly concerned
are prepared to promote, among themselves, migration movements of settlers, and leaves aside the factors which may lead
them to adopt a different attitude.
It may be thought that this assumption is so far removed from
the reality as to deprive the study which is based upon it of all
save theoretical interest. Such a fear, however, seems hardly
justified. It is true that the anxieties which have prevented a
recovery of migration, and which reached their greatest intensity
during the recent depression, are still felt very strongly; but as
was revealed by the discussions of the Migration Committee in
November 1936, the atmosphere has to-day become more propitious, particularly as regards the settlement of immigrants in
certain Latin-American countries, and the principal obstacle is
now a financial one. It was with a view to becoming better
acquainted with the attitude of the countries directly concerned,
and to making sure that a thorough examination of the financial
problem might reasonably be expected to lead to practical
results, that the Governing Body wished, before convening a
conference of experts, to sound a certain number of Governments
as to their willingness to participate. The encouraging nature
of the response received justifies the hope that the conclusions
of the conference will lead to a recovery of migration for settlement.
In order to prepare the work of the experts, an attempt is
made, in the first chapter of this report, to analyse the main facts
of the situation, in the second chapter, to enumerate possible

— 8 —

means of overcoming the financial difficulties, and in the last, to
resume the principal conclusions of the preceding analysis,
special attention being devoted to the cases in which the unilateral or bilateral action of the directly interested countries should
be supplemented by international co-operation.
In reviewing the measures which might be adopted by the
national Governments, the report does not deal with concrete
cases of particular immigration countries prepared to receive
settlers from particular emigration countries. The task of the
conference of experts is much more general in character, i t
consists, not in discussing or proposing concrete settlement
schemes, but in suggesting possible methods of technical and
financial co-operation which may be adopted by the countries
concerned if they wish and in whatever way suits their needs best.
But in view of the fact that the prospects of a recovery in migration for settlement are at present greatest in certain LatinAmerican countries, and that the Governing Body therefore
confined the problem to be studied to immigration in those
countries, this report in the main observes the same limits. The
experiences of other immigration countries are mentioned only
in cases in which they appear to provide information that may
be useful in the solution of the difficulties met with in Latin
America.
The report thus aims at defining the problem submitted to
the experts, providing guiding lines upon which they may work,
and assisting them in the formulation of precise proposals.

CHAPTER I
GENERAL STATEMENT OF THE PROBLEM

THE NEED FOE ORGANISATION

The interest of the new oversea countries in the settlement of
immigrants is not of recent date, for these countries have always
regarded such colonisation as a factor of supreme importance in
their economic, demographic, and social development. The
world economic depression, however, forced the question of
migration for settlement to the foreground of migration problems.
It was found that while the evil of unemployment, under which
the new countries suffered like the old, made it necessary for these
countries to close their doors to immigrants seeking paid employment, their rural districts were still capable of absorbing a larger
population, not only without inconvenience, but with positive
advantage to the general economic development of the country,
so long as the newcomers really remained on the land. In the
restrictive measures designed to protect the national employment market, therefore, exceptions have always been made for
immigrants wishing to settle on the land, and any new provisions
concerning such immigrants have manifestly been made with the
sole purpose of assisting them to this end.
It was quickly seen, however, that the granting of special
exemptions, though a proof of the interest taken by the State
in the immigration of settlers, did not constitute a sufficiently
powerful stimulus; for despite the entire absence of restrictions
of any kind, the number of immigrant settlers not only failed to
increase but actually tended to decline.
The explanation of this lies in the fact that migration for
settlement differs from ordinary migration not only as regards its
purpose, but also as regards the organisation required. Generally
speaking; wage-paid workers may be willing to migrate to a
country which offers possibilities of employment and conditions

— 10 —
of work equal to or better than those of the country they leave.
A certain minimum of organisation may indeed be necessary if
the conditions of employment are such as to attract only certain
categories of immigrants too poor to pay the cost of the voyage
themselves. It may also be considered desirable to organise all
migration of workers in such a way as to protect the States
concerned and the workers themselves against certain risks.
Hitherto, however, no organisation seems to have been indispensable to meet the demand of the oversea immigration countries
for labour.
Migration for settlement, on the other hand, presents an entirely
different problem, for its success and even its possibility depend
on organisation, sometimes of a highly complex kind. Whereas
the ordinary migrant worker has reached his goal when he has
found employment in which he can earn his living, the immigrant
settler must work for years, under some public or private settlement organisation providing for his various needs, before he can
establish himself finally. If organisation of this kind is lacking
or inadequate, the migrant settler is doomed to failure even if the
general economic condition of the countries of immigration
improves rapidly, and despite the opportunities that most of
them still seem to offer him.
This need for organisation has been recognised by the countries
of emigration, where the whole problem, thrown into relief by the
difficulties now being encountered in connection with the oversea
migration of workers, is receiving ever-increasing attention. In
the countries of immigration too, certain actions taken, and a
number of signs of a more general nature, indicate a growing
realisation of the fact that the immigration of settlers is chiefly
a question of organisation. There is, of course, nothing new in
this. The whole experience of immigration countries goes to
prove that the direct introduction of immigrants for the purpose
of settlement has never succeeded without proper organisation.
The particular cases of certain States, however, which happen to
be among the principal immigration countries, have tended to
divert attention from this point. At the beginning of their
economic development, these countries made great efforts to
organise the settlement of European immigrants, and on the wholeit can be said that those efforts were successful, for the regions
affected by them are even to-day the most developed denvDgraphically, economically, and socially. But in the later stages their

— 11 —

general conditions (climate, soil, and geographical position), which
marked them out for large-scale agricultural production for export,
sufficed to attract wage-paid workers in great numbers without
special organisation being necessary. The experience of these
countries differs from that of certain other Latin-American
States, which, in order to encourage immigration, were obliged
to retain the method of direct settlement. They were in the
happy position of having a greatly simplified settlement problem.
At quite an early stage they found that it was no longer necessary,
as in the initial years of their development, to make careful
arrangements for the immigration and settlement of farmers on
specially selected land. For a sufficient proportion of the mass
of immigrants entering the country as hired labourers, having
saved the necessary capital, become familiar with the language
and the general conditions of the country, and acquired a knowledge of the trade, always broke away after a few years and established themselves as independent farmers, opening up new land
for cultivation. This process continued without any organisation
at all, by the simple occupation of free land, or with a very
rudimentary kind of organisation, far less elaborate than would
have been required for the settlement of immigrants coming
directly from abroad and needing guidance, help, and technical
advice to compensate for their total ignorance of local conditions.
To-day, however, the situation has changed, and these countries
can no longer count upon the traditional system of settlement in
two stages to supply their needs as in the past. With only one
exception—that of Säo Paulo, where there still appears to be a
shortage of labour—no American State offers to-day (or is by any
means certain to offer to-morrow) favourable conditions for the
immigration of agricultural labourers intending later to establish
themselves as independent farmers. Agricultural unemployment
has not disappeared. Further, even if immigrants were able to
find work in agriculture, and even if the legal restrictions placed
by most countries in the way of the immigration of wage earners,
including agricultural workers, were removed, wages have been
forced down by the depression to a level at which it would be
impossible for the labourer to save, as before, the capital needed
for his establishment as an independent farmer. If these countries desire, therefore, to proceed with the opening up of their
undeveloped areas, they can do so only by calling in immigrants
directly for settlement. If this is done, however, steps must be

— 12 —
taken to ensure that the settler is really enabled to establish
himself on an independent basis. He must be given conditions
which will make success possible for him. He must be attached
to the soil and prevented from drifting back into urban or rural
employment in which his services are not needed. Proper organisation is required not only in the interest of the immigration
country, but also in that of the settler, who in case of failure will
not find a new livelihood as easily as in earlier times.
This organisation, which determines so closely—mathematically, even—the current of migration for settlement, is still far
from adequate in most countries of immigration, though they
consider the immigration of good farmers desirable; in some, it
is totally lacking. Before entering upon a consideration of
methods destined to remedy this situation, the various types of
organisations at present engaged in settlement activities will be
reviewed, and the question will be considered of their ability
to supply a framework upon which a complete and adequate
organisation of migration for settlement can be built up.
EXISTING SETTLEMENT ORGANISATIONS

Settlement organisations may be divided into three categories :
official settlement institutions, set up in a certain number of
immigration countries; private organisations whose purpose is
predominantly a social one—that of ensuring the successful
settlement of the greatest possible number of their candidates;
and settlement companies and individual settlers pursuing purely
commercial and speculative aims.
Official Settlement Institutions
All immigration countries possess official services charged with
the administration, sale, and lease of State lands, 1 and it is to
1
No account will be given here of the official settlement services of the
various immigration countries whose organisation and action have been
described in detail in a series of studies published in the International Labour
Review : " Openings for Settlers in Argentina, " in Vol. X X X , No. 4, October
1934; " Land Settlement in Brazil, " in Vol. X X X I I I , No. 2, February 1936;
" Land Settlement in Chile ", in Vol. X X X I V , No. 3, September 1936; and
" Immigration and Settlement in Brazil, Argentina, and Uruguay, " in Vol.
XXXV, Nos. 2 and 3, February and March 1937. Information regarding
other countries will be found in Studies and Reports, Series O (Migration),
No. 3, 1928 : Migration Laws and Treaties, Vol. II, " Immigration Laws and
Regulations."

— 13 —
these services as a rule that the State entrusts the organisation
of the settlement of land considered suitable for families of settlers.
In some countries this " organisation " consists simply of the sale,
on the instalment system, of small or medium-sized holdings;
while in others the competent services, which are usually placed
under the Ministry of Agriculture, carry out settlement schemes
in the full sense of the term, preparing the holdings, recruiting
the settlers, assisting them in taking up residence on the holdings
allotted to them and supplying them with the necessary credit and
with technical and social assistance. Such, for instance, is the
action carried on with considerable regularity, despite budgetary
limitations, by the Federal and State settlement services of Brazil.
In a number of other countries, administrative services have been
set up to assist settlers, but in the absence of special credits for
this work, the action of these services has been limited to a few
sporadic efforts.
During the last few years a movement has come into being for
the creation of autonomous settlement institutions possessing their
own funds and hence able to employ permanent trained staffs and
carry on a regular activity.
In Uruguay an Act of 10 September 1923 set up a permanent
Settlement Service, which, though connected for administrative
purposes with the Mortgage Bank, is financially independent and
endowed with a capital of 3 million pesos. The Service establishes
settlers on the land, furnishes them with technical advice, makes
advances to them in certain conditions, and obtains long-term
credits for them from the Mortgage Bank. Since the coming into
force of the Act, official activity with regard to settlement has
been carried on exclusively through this body, which has now
acquired great experience and a degree of technical efficiency that
enables it to accomplish really valuable work.
In Chile a Public Land Settlement Fund was established by an
Act of 10 December 1928. The capital of this Fund was provided
by the issue of bonds, though as a result of the depression fewer
issues were taken up than had been provided for, and its funds
remained somewhat restricted. It succeeded, nevertheless, in
organising over thirty settlements in the first ten years of its
existence, and despite the intense economic depression through
which Chile was passing during this period, settlers paid their dues
punctually for the most part : on 31 May 1937, 80.81 per cent, of

— 14 —
the total amount due for the service of mortgage loans, and
89.56 per cent, of the total due for the service of long and shortterm loans granted by the Fund, had been paid.
As regards Argentina, an Act passed in 1937 by the Government
of Buenos Aires set up an autonomous Settlement Institute for
that Province, to be financed by the issue of Provincial Government bonds. The Institute has just begun its work. Further, the
Federal Government has submitted a Bill to Congress for the
creation of a Federal Settlement Institute, to be financed by a
credit of 20 million pesos and by the proceeds of subsequent sales
of public lands.
In Brazil, too, a scheme is being prepared for the establishment
of an autonomous settlement institute.
A number of official financial institutions, as well as the services
specially created for the purpose, are entrusted with the carrying
out of operations for the promotion of land settlement in addition
to their ordinary business. In Argentina, for instance, the
National Bank had to take over the holdings of a number of settlers who had failed as a result of the depression, and to create
special technical services for the management of these farms, which
it first leased out and later re-settled on its own account. These
operations were facilitated by the authorisation granted to the
agricultural credit section of the Bank to make whatever advances
the settlers required for the improvement and development of
their holdings. The Mortgage Bank, too, has come into possession
of large areas of land (2,202,000 hectares) and created special
technical services for their partial settlement on a sound basis.
In some countries, again, credits are occasionally voted for the
creation of isolated settlements, the organising work being
entrusted to various kinds of official bodies, usually the land
banks.
In the field of immigration for settlement, however, the action
of the various institutions described has hitherto remained
somewhat limited. In many countries the funds of the official
services are reserved primarily for the settlement of agricultural
workers—nationals and aliens—who are already resident in the
country, for it should not be forgotten that most of the American
States have a problem of internal settlement as well as an immigration problem, the transformation of agricultural workers into

— 15 —
independent landowners being, in some of them, a n urgent social
need. I t is perfectly comprehensible t h a t in view of t h e limited
financial resources placed a t their disposal, the national settlement
services should give preference t o farmers who, being born and
trained in the country, have more chance of settling successfully
t h a n persons coming from abroad.
I n certain countries, nevertheless, even where there is a n acute
internal settlement problem, credits have been reserved specially
for t h e settlement of immigrant farmers, either with a view t o t h e
development of certain branches of agricultural production with
which the farmers of the country itself are little acquainted, or, if
it is considered t h a t the national settlers lack proper training,
with a view t o providing t h e m with a kind of model—a colono
educador, to use the Chilean expression. I n these cases t h e
introduction of alien settlers may be said t o form p a r t of t h e
internal settlement scheme.
As a rule, however, the finances of the official settlement services are necessarily limited. I n some countries, indeed, lack of
funds has reduced these services t o a position where t h e y have
ceased to exist except on paper or to engage in other operations
t h a n the collection of debts due t o t h e m from settlements already
founded ; while in others t h e same cause has led t h e m t o restrict
themselves to internal settlement work. If proper use is to be
made of the experience and technical equipment of these services
for the promotion on a larger scale of immigration for settlement,
steps must be taken to provide them with greater
financial
resources.
The solution of this problem, which is thus essentially a financial
one, will be considered on a later page.
Private Settlement Organisations of a Social Character
Organisations of this kind are of two principal types :
(a) Settlement organisations created exclusively for a social
purpose, engaging in settlement activity for its own sake
and not with a view t o profit; financial interest in t h e work
is limited a t t h e most to the covering of expenses ;
(b) Settlement organisations created for a social purpose b u t
financed by private capital and t h u s obliged t o earn profits
from which to pay dividends; in these organisations t h e

-

16

commercial motive of profit is more or less explicitly
subordinated to the social purpose of settlement, it being
recognised that maximum profits are not always compatible with a socially, demographically, and economically
sound s~ttlement policy.
.
Existing organisations of this kind, like the official services, do
not appear sufficiently developed to make full use of present
possibilities in the field. of settlement. Those of the first type,
which do not aim at making profits but engage in the work for
its own sake and with purely social motives, are extremely rare.
One of the very few permanent bodies in this group that can be
described as typical is the Jewish Colonisation Association, which
has done successful settlement work in Argentina, and to a less
extent in Brazil also. The Association is endowed with capital
given to it by philanthropists, and its activity is governed by
absolutely non-commercial motives. Its whole organisation and
the conditions that it offers to settlers (which are as generous as
the necessity of maintaining working capital and covering overhead expenses permits) aim first and foremost at ensuring successful settlement. It should be mentioned in passing, however, that
despite its social character and the philanthropic spirit in which
its policy is framed, the Association does not make the mistake
of placing its everyday relations with the settlers on a philanthropic basis. When mutual rights and obligations have once
been defined, strictly commercial methods are used. It is to this
policy that the Association attributes its success, for it has meant
the preservation in the settlers' minds of a sense of responsibility
which misunderstood philanthropy might well have undermined.
The Jewish Colonisation Association possesses only limited funds,
and since 1889, when it began its work in Argentina, it has settled
on an average only 75 families annually in that country.
The attempt made in 1936 by the Nansen Office to settle
refugees from the Saar in Paraguay belongs also to this type
of scheme.
Other isolated efforts on the same non-commercial basis may
also be mentioned. In the South of Brazil, for instance, a few
experiments in settlement have been made by religious bodies,
though in these cases the settlers were supposed to furnish a considerable proportion of the capital. required, In emigration
countries, too, persons desiring to settle in oversea countries

.....-17-

have formed associations in order to make common arrangements for their transport and establishment. In some cases
such associations have received encouragement and aid from the
country of emigration, particularly when the State saw in them
a cheaper means of alleviating unemployment than the usual
forms of public assistance. The danger inherent in this type of
scheme is that the associations may be founded by persons who
lack the necessary experience and ability or who seek only to
exploit the illusions and ignorance of emigrants and rob them of
their small savings. In this connection it will be recalled that
quite recently the Swiss Government found it necessary. to pass
an Act providing for the strict supervision of associations of this
kind with a view to the protection of prospective emigrants for
land settlement against the activities of incapable or dishonest
persons. Numerous cases could be cited in which schemes of
this kind have failed or the swindle behind them has been exposed
either before the departure of the emigrants or-what is more
serious-after their arrival in the country of destination; and no
instance is known in which such a scheme has succeeded. It must
be 'concluded, therefore, that organisations of type (a), satisfactory as they appear at first sight, are unsuitable as a means of
promoting a new movement of migration for settlement,"
The same is true, at the present time at any rate, of institutions
of type (b), namely those which, though financed by private
capital and hence obliged to earn profits in order to pay dividends
to their shareholders, are organised primarily with a view to the
pursuit of non-commercial aims-rational settlement of a region,
its development, the success of the settlers-rather than speculative profits that may prevent good practical results. Organisations of this kind, which for convenience we shall call " settlement companies of the social type ", are still very few in number,
though it is through them that most direct immigration for
settlement is effected to-day.
The first instance of this type of settlement company appears
to have been the Hanseatische Kolonialgesellschaft, founded in
1897 under the auspices of the German Government. In exchange
1 Associations of persons desiring to settle ID oversea countries may,
however, serve a useful purpose if they limit themselves to bringing together
. would-be emigrants satisfying certain conditions, and leave the organisation
of the settlement to properly qualified settlement institutions. Further
reference is made to this point in the footnote on page 18 of this report.

2

— 18 —
for the facilities that it granted to the Company, the Government
reserved the right of supervision of policy and administration with
a view to ensuring the safety and fair treatment of settlers. The
Company was also assisted by the Brazilian Government, which
granted it 200,000 hectares of land in the State of Santa Catharina. The whole of this concession was settled, and apparently
in such a way as to provide absolutely satisfactory social
conditions.
In spite of this encouraging precedent, it was not until 1917
that a second settlement company of the kind was founded, the
Kaiga Kogyo Kaisha (International Development Company). This
well-known company, which is a model of technical and financial
organisation, was created on the initiative of the Japanese
Government, from which it has received, since 1923, annual grants
of 100,000 to 250,000 yen and a subsidy equal to the cost of the
emigrants' transport. The percentage of settlers transformed
through the activity of this company into landowners—their
" coefficient of establishment "—is probably the highest ever
attained by any settlement institution, public or private, and this
remarkable record proves conclusively that social motives in a
settlement organisation are not in the least incompatible with
sound financial policy.
Two other similar Japanese companies were founded in 1927
and 1928, namely the Brazilian Development Company and the
South American Development Company.1 Quite recently, also,
a Peruvian Agricultural Development Company was formed for
1
The Brazilian Development Company, constituted in accordance with
Brazilian laws and regulations, was created by the Federation of Japanese
Emigration Guilds a n d derives really from the " emigration guilds " formed
spontaneously by intending emigrants under the Act of 29 March 1927 for
the purpose of assisting members emigrating with their families. As incorporated institutions with limited liability, the guilds may be formed at the
rate of one for each administrative area, and, unless otherwise provided in
the 1927 Act, their organisation must conform to the Act relating to co-operative societies. (The provisions in question aim chiefly at protecting emigrants against fraud and bad treatment.) Candidates for membership of
a guild must pay a contribution of 50 yen and be heads of families of a t least
four persons of ordinary working capacity. The principal activity of the
guilds lies in the recruiting of emigrants and the development of emigration.
They are grouped under a central organisation, the Federation of Emigration
Guilds, which is responsible for the transport and settlement of emigrants.
The Government makes grants to emigrant members of the guilds to cover
the whole of their transport expenses, while for the organisation of their
settlement the Federation may set up special bodies—as in the case of t h e
Brazilian Development Company—whose rules must contain a guarantee
that they will carry on their activity with a view solely to the social interests
of the settlers.

— 19 —
t h e purpose of placing on t h e land some of t h e J a p a n e s e immigrants already settled in t h a t country.
A further company must be mentioned here, although its
action, which should have extended to the agricultural regions
of Argentina in general, has been limited t o t h e foundation of
a single settlement in the Valley of the Rio Negro. This is t h e
Italo-Argentine Settlement Company, established in 1924 under
the auspices of the Italian Emigration Commission, which provided it with a loan of 5 million lire financed by t h e National
Credit Institute for the assistance of Italian workers in foreign
countries. The Rio Negro settlement, which to-day plays an
important p a r t in the fruit export trade, though well organised
from the technical point of view, is in an unsatisfactory financial
position. The settlers appear t o have difficulty in paying their
debts, while the price paid by the Company for land only recently
irrigated and still the object of speculative activities, t h u s necessarily offering less chance of success t h a n older land of proved
value, was probably too high.
Lastly, mention must be made of the efforts m a d e by t h e
Polish emigration authorities in recent years t o obtain from
commercial settlement companies certain guarantees regarding
the treatment of emigrants, in exchange for facilities granted in
connection with their recruiting, selection, and transport, or in
return for financial support. In 1935 a settlement company of
the social t y p e was founded under the auspices of t h e Polish
Government. This organisation, which took the form of a
limited liability company with t h e title " International Settlement Company ", received financial support from three State
banks.
From this general survey it will be seen t h a t private settlement
companies of t h e social type are still few in number, and a t present
serve the needs of emigrants of only two nationalities. 1 Nevertheless, the development of such bodies, co-ordinated as parts of
1
In order to complete the picture, it should be added that private companies performing public services and therefore bearing a certain social
responsibility—railway companies, for instance—have in some cases drawn
up settlement schemes in which non-commercial considerations existed side
by side with the motive of profit. The settlement work carried out by
the Canadian railway companies for the benefit of immigrants, for instance,
is well known. In Latin America a few examples could be given of sporadic
attempts in the same direction, such as the foundation, by the Settlement
Consortium of the Argentine railways companies, constituted in 1927, of
three or four settlements (whose future, it must be admitted, appears

— 20 —

an international scheme, must be regarded as highly desirable.
There will be occasion to return to this subject on a later
page.
Private Settlement Organisations of a Commercial Character
At first sight it would appear that the wide gaps left, as we
have seen, by public institutions and private companies of the
social type might conveniently be filled by purely commercial
settlement organisations. One is indeed tempted to believe that
whatever opportunities present themselves for economically profitable settlement work will immediately be seized upon by
private initiative. This view is a common one, and is probably
responsible for the slow progress of State action in this field, even
in the countries most interested in the development of migration
for settlement. As a matter of fact, however, openings for
commercial settlement are much fewer than is generally supposed,
and are likely to diminish further, at any rate as far as the direct
introduction of immigrants for settlement is concerned. As it is
vain to hope for the creation of really adequate settlement institutions until this fact has been clearly recognised, an attempt will
be made here to analyse the situation in some detail.
The existence of possibilities for settlement in a country or a
particular part of a country does not necessarily mean that
private initiative will make use of them. Private settlement
schemes, in a strictly commercial sense, are subject to certain
limitations imposed by the character of settlement activity, and
the importance of these limitations appears as yet to have been
insufficiently realised.
The private settlement undertaking draws its profit chiefly
from the margin between the price at which it buys land and the
price at which it sells it again to the settlers. In a new and
undeveloped region, where land can usually be purchased cheaply,
this margin may be considerable; but it becomes smaller as the
development of the region proceeds, and finally disappears when
somewhat uncertain). I n Brazil, too, the Sâo Paulo Railway Company
has recently created a settlement organisation with a view to bringing
new life to certain regions, exhausted by the cultivation of coffee, through
which its lines pass. This organisation proposes to purchase fazendas
in collaboration with the Government, to divide them up, and to place
independent settlers upon the holdings thus provided.
These are the only cases, as far as the Office is aware, in which the railway
companies of Latin America have engaged in any way in settlement activities.

— 21 —

the price of land comes to be determined by its economic yield.
This process may be very rapid, for speculation in real estate, by
anticipating an uninterrupted rise in land values, frequently forces
its price above its true economic value. From the moment when
the price of land becomes determined by its economic yield,
however, the settlement organisation is no longer able to add to
it when selling to the settler, who would be doomed to failure if
he paid more than the holding was worth as an instrument of
production. A settler who possessed capital enough could, of
course, pay this disproportionate price, but such settlers are
becoming increasingly rare, particularly as a result of the agricultural depression, and it is probably owing to the disappearance of
these valuable clients that private settlement bodies have ceased
their activities in the developed areas. In the whole of the
central region of Argentina—the richest part of the country—
where only twenty years ago a large number of settlement
organisations were active, there is to-day only one body professionally engaged in settlement activity, namely the Jewish
Colonial Association, which is not a profit-making body. Not a
single commercial settlement organisation is now working in
Uruguay, the central part of Chile, or the highly-developed areas
in the South of Brazil. In all these regions private settlement
work has become unprofitable. This does not mean, of course,
that the regions in question have ceased to offer opportunities
for settlement; on the contrary, it is generally recognised that
considerable opportunities could be made available by breaking
up the large estates there. But these areas, though not cultivated
by their owners, have nevertheless been developed up to the
maximum limit of the return on the land, either under a system
of paid labour, as in Chile, or under the more precarious systems
of share farming and tenant farming as in Argentina and
Uruguay.
It is beginning to be realised that in these districts the era of
commercial settlement has been brought to an end by the disappearance of the conditions which formerly made private settlement
profitable, and that the closer settlement which demographic and
social considerations render desirable can be assured only by the
State. Particularly in the case of farmers without much capital,
settlement activity in these regions, far from providing profits
for those who engage in it, may require State subsidies. In areas
in which land values have risen to the maximum limit of economic

— 22 —

return, 1 the settler who has nothing but his labour upon which to
count may succeed in extracting enough from his farm to pay the
interest on his debts (where values have become adjusted to their
normal levels, the interest on capital corresponds fairly closely to
the rent of land), but he will have great difficulty in meeting his
redemption charges at the same time.
On the other hand, the farmer who brings with him capital
enough to enable him to pay at the outset a substantial part of the
price of his holding can be effectively settled, even on land whose
value has risen to the maximum limit of its yield. The settlement
organisation, in such a case, is not only able to do without unrepayable grants, but can work without loss or even with profit,
depending on the amount of capital brought by the settler.
There are certainly some emigration countries which could be
a source of settlers of this kind possessing a small capital, for the
price of a holding in the immigration regions just considered is
still, in spite of the rise in land values, appreciably lower than
that of similar holdings in the emigration countries in question.2
Are we to conclude that the settlement of farmers possessed of
a certain amount of capital can still be effected in these regions
by commercial undertakings? This question brings us to a
second difficulty which limits the possibilities of commercial
settlement activity, namely, its increased cost.
Quite apart from the rise in land values, a number of factors,
to which we shall return later, have combined to raise the cost of
settlement. This means that the individual settler needs more
time than formerly for the payment of his debts. Yet in comparison with those of the past, the conditions now imposed by
private settlement companies in the granting of loans to settlers
are hard : payment is usually required within four or five years,
sometimes within two or three only. Cases in which six years
are allowed are quite exceptional, and imply that the company
1
This does not mean, of course, that the price of land has become finally
stabilised, b u t simply t h a t its variations will henceforward, as a result of
the constant activity of dealers in real property, be determined by the
variations in the value of agricultural products.
2
This difference of price is due to the fact t h a t in sparsely populated
countries the price of rural land is normally determined by its value as an
instrument of agricultural production, whereas in the more densely populated
countries of Europe its value for the purpose of residence or recreation may
raise the price. In certain countries the disparity is accentuated by exchange
differences between the currencies of the emigration and immigration
countries.

— 23 —

—assuming that it spends four years in dividing up and settling
the whole area—will not recover its capital until ten years after
the begining of the operation. Private investors appear unwilling
to make longer investments of this kind, again owing to the
character of settlement activity.
The private capitalist who sinks his money in an ordinary
industrial or commercial undertaking can sell the undertaking at
any moment without interrupting its business, and thus liberate
his capital. Such operations are common, and may even yield
a profit—at least the investor is entitled to expect that they will.
The investor in a settlement scheme, on the other hand, when
once he has prepared his land and placed his settlers on it, has
nothing in hand except outstanding credits. If he wishes to
recover his capital before the date of repayment, he can do so
only by transferring such credits—an operation far more complex
than the sale of ordinary industrial or commercial undertakings
and of necessity involving considerable loss for the seller. Capital
invested in settlement organisations being thus practically immobilised, it is hardly to be wondered at that these bodies have
difficulty in obtaining long-term loans from private capitalists.1
1
Further, the method ordinarily used to finance activities that require the
prolonged immobilisation of funds, while leaving the individual investor free
to withdraw his capital at any time—namely, that of the issue of shares
or debentures—is hardly applicable to commercial settlement schemes.
Such schemes have always been of a highly speculative nature, calling for
propaganda t h a t tends to exaggerate the prospects of future settlement.
Since the whole question is one of subjective judgment, it is difficult to
prevent such propaganda, which is indeed considered by some to be essential ;
but it brings with it a strong temptation to the promoters of a scheme to
force up the price of shares in the earlier stages and sell out before actual
results restore them to their true value. Public mistrust therefore tends to
make it difficult for settlement organisations of this kind to obtain capital
through the issue of shares.
The question of dividends presents a further obstacle. Shareholders
expect to receive their first annual dividend at the end of the first year of
investment. Yet, whereas good accountancy may permit an ordinary
commercial or industrial undertaking to calculate its profits during the second
or even the first year of its activity, a settlement company, owing to the
peculiar nature of its work, needs much longer. If it is financed by share
capital, it will be tempted, in order to maintain the price of its stock, to
distribute sham dividends. The only way in which it can overcome the
difficulty is by placing its shares in the hands of financiers who are strong
enough to be able to wait several years for their dividends, until the settlement operations are completed. But here the problem of the length of the
loan reappears in the form in which we have already examined it. In short,
it may be said that the public will not invest in the shares of commercial
settlement companies unless they have the support of certain specially
qualified circles or of the public authorities. We shall revert to this point
later.

— 24 —

Other factors also prevent long-term investment in settlement
undertakings. As we have already seen, commercial bodies
engaged in this work obtain their profits chiefly from the rise in
the value of the land ; it is in the very nature of their business to
demand from the settlers the highest prices they can be expected
to pay, in order to profit as much as possible from the rise in land
values in the district being settled. The private settlement organisation which refrained from pursuing this policy, however it
might benefit the cause of settlement, would be acting in an
unbusinesslike way and, if it were working with funds entrusted
to it by a third party, would therefore be open to criticism. In
order to profit by the rise in land values, the organisation must
raise the sale price more or less in proportion to the time-limit
allowed to the settler for payment. If it allows ten years instead
of five for payment, but increases the price only by the normal
amount of interest, it is acting not as a settlement organisation
but merely as a bank. On the other hand, prices can hardly be
raised indefinitely on the pretext of rising land values, for the
settler will refuse to engage himself if the price demanded is excessive. The impossibility of raising prices above a certain level
thus constitutes an obstacle to the prolongation of the time-limit
for payment beyond what is customary in commercial settlement
undertakings. 1
This unwillingness of commercial settlement undertakings to
extend the period allowed for payment restricts their field of
action, both geographically and numerically. It means that they
can operate only where the cost of settlement is low enough to
enable the settler to pay off his debt in a few years ; as soon as the
cost rises, it becomes impossible to settle anyone who has not a
certain amount of capital with which to make a substantial
payment on account, so that he can still pay off his debt within
the same time-limit. Since settlers of this kind are rare, commercial settlement companies operating in the more expensive
areas are altogether exceptional.2
1
It is interesting to note t h a t settlement organisations of the social type,
which calculate their prices not so much on the basis of a possible rise in
land values as on t h a t of their actual expenses, nearly always allow longer
time-limits for payment than the commercial bodies.
2
Perhaps only two commercial settlement companies can be cited as
having devoted any considerable amount of money, since the war, to the
establishment of settlers possessing a little capital. One of these operates
in Northern Argentina, and the other in the Brazilian State of Parana. Both
have great difficulty in finding prospective settlers possessing the necessary
capital.

— 25 —
On the other hand, there are at the present time only a limited
number of regions where settlement does not require large-scale
investment, and consequently time-limits for payment that are
too long for commercial undertakings. In the central region of
Argentina for instance, it is generally admitted that the settler
needs some thirty years, even if he brings his own working capital
with him, to pay the price of his land. The National Mortgage
Bank loans are made for a term of 33 years, and even so a large
proportion of the settlers established on the land by means of
these loans have been unable to meet their interest and redemption
charges. The recently founded autonomous Settlement Institute
of the Province of Buenos Aires charges interest at 3 per cent.
and redemption also at 3 per cent. ; the official Settlement Service
of Uruguay grants the same conditions as the Argentine National
Mortgage Bank; the loans of the Chilean Land Settlement Fund
are made for a term of 41 years.
In regions where the land has been cultivated by hired labour
or under a kind of tenant-farming or share-farming system, its
value has risen rapidly, and the market price has frequently risen
above the real economic value as a result of the buyers' expectation of a further steady increase. But where the nature of the
soil or of the crops raised necessitates a system of farming by independent settlers and their families, the price of land has risen only
gradually as settlement proceeded. The conditions in such
regions also favour the cultivation of a variety of crops capable
of satisfying the farmers' household needs and permitting him to
to use practically all his cash income for the service of his debt to
the settlement organisation, so that he can pay off the low price
of his land in a short space of time.
The accompanying sketch (p. 26) shows the districts in which
commercial settlement organisations operate. Outside the shaded
areas commercial settlement has for a long time past consisted
exclusively of a few isolated attempts, which have for the
most part failed.1 It will be seen that the zone of commercial
settlement, though spread over three countries—north-eastern
Argentina, eastern Paraguay, and the inland regions of the
1
I t happens, of course, that farmers establish themselves as independent
settlers outside this area, making use of whatever facilities estate agents
may grant for the purchase of their land—paying a lump sum on account,
probably, and the remainder in a few instalments. Sometimes these agents
style themselves settlement companies, but in fact they limit themselves to
selling land on the hire-purchase system and leave the buyer to establish

— 26 —

southern States of Brazil—constitutes a single unit from the
point of view of climate, the nature of the land (more or less
thickly covered with forest or scrub, broken by clearings), the
crops raised (sub-tropical), and finally the prevalent system of
farming (the small family farm of from 10 to 50 hectares is the

ZONES OF ACTIVITY OF COMMERCIAL SETTLEMENT ORGANISATIONS

most rational and indeed almost the only possible system, apart
from the stock rearing engaged in on a large scale by very big
undertakings).
himself on it if he likes and as best he can. The buyer must have considerable capital in order to make the initial payment, instai himself and bring
his holding into cultivation. He must have, also, sufficient experience of
agricultural work and local conditions to enable him to dispense with
outside help. I t is chiefly grown-up sons of old settlers who succeed in
establishing themselves in this way.

— 27 —

Even in the regions most favourable to them, however, commercial settlement companies do not make full use of their opportunities. The small number of settlers established by these companies is due not to a lack of men willing to bring the new land
into cultivation, but to the comparative failure of the companies
to create an organisation for bringing the men and the land into
the proper relationship. With very few exceptions, the action
of commercial settlement companies is impeded by two factors.
The first, to which attention has already been drawn, is the
lack of capital coupled with the difficulty of securing any but
short-term investments or loans. Even in sones in which land
is still cheap, more capital is needed for the equipment and
running of the farm now than in the past. The time has passed
when a settler could content himself with the sale of the small
surplus of the crops raised primarily for his own use and sufficing
for his elementary needs. The march of civilisation has created
new needs, and in order to satisfy them the settler must have
money, which means that he must produce more or less exclusively for sale. Commercial production of this kind, which has
to meet ever-increasing requirements, nearly always involves
costly equipment and sometimes industrial machinery. In
certain zones and for certain crops it also calls for considerable
working capital, which, if the settler does not possess it, must
be obtained through easy conditions of payment. Commercial
settlement organisations, unable to provide such conditions, thus
find their clients only among the wealthy settlers, who are not
numerous.
Here a second difficulty presents itself, namely that of the
insufficient guarantees offered by commercial organisations to
the settler, with the consequent further limitation of their clientèle. Prospective settlers who could bring the necessary capital
with them consider it imprudent to risk the loss of their money
by concluding contracts with these organisations, for the numerous failures of private settlement schemes have created a strong
mistrust of settlement in general. It should be noted that these
failures have been failures of individual settlers rather than of
settlement organisations, which have nearly always succeeded
in recouping themselves by substituting fresh settlers for those
who are unsuccessful; even when this has proved impossible, they
have remained in possession of the land improved by the labour
of the evicted settlers.

— 28 —

There is no need to dwell here on the cases of fraud—now
apparently becoming less frequent—in which settlers have been
the victims. But it must be emphasised that, contrary to the
general opinion, the interest of the settlement organisation, even
when its good faith cannot be called in question, is sometimes far
from coinciding with that of the settler or with the aims which
a well conceived settlement scheme should pursue. It may
frequently happen that a settlement organisation, acting with
its commercial interests alone in view (for which it cannot be
reproached, particularly if it is operating with capital entrusted
to it by a third party), is led to sacrifice the interests of the
settlers or the object of settlement itself, i.e. the peopling of a
district according to sound economic and social principles.
This conflict of interests is inherent in the nature of settlement
activity for gain, and if the history of this activity is marked by
a succession of failures, they should be attributed not so much to
imprudence or bad faith as to the opposition which is always
liable to arise between the commercial and non-commercial purposes of settlement.
The primary object of settlement should, of course, be the success of the settler, i.e. his establishment as owner of the holding
assigned to him. From the strictly commercial point of view,
however, although a settlement undertaking may be interested
in the settler's success, it may also be indifferent or even see in
his failure a source of profit to itself. In this last eventuality, the
undertaking will naturally be unwilling to help him, and will
seize the first opportunity that presents itself to terminate the
contract.
As a rule, the commercial settlement organisation desires the
success of the settlers when it is attempting to " launch " a new
settlement scheme in an undeveloped district. The success of
the first settlers constitutes the best possible propaganda for this
purpose, and the organisation makes every effort to ensure it,
carefully selecting settlers with suitable professional qualifications, and attaching more importance to their personal qualities
than to the amount of capital that they possess. It supplies them,
if necessary, with whatever equipment they lack, and demands a
low price for the holdings assigned to them. In brief, it enables
the settlers to become landowners in the shortest possible time.
As soon as the settlement is " launched " and the applications
for holdings are flowing in, the price of the land can be raised, a

— 29 —

substantial sum can be demanded on account, and the settlers
can be required to supply their own working capital. Selection
according to professional qualifications, to which the greatest
importance should be attached in any properly organised settlement scheme, is relegated to a secondary place. The essential
question becomes that of the sum that the applicant can pay at
the outset to cover the undertaking. If the settler is unsuccessful, his failure is attributed to his lack of ability.
Finally, when the settlement undertaking considers that the
district has been developed, i.e. that a sufficient number of persons are prepared to pay the prices demanded, the failure of
individual settlers becomes profitable. They have paid substantial sums on account, with perhaps a few annual instalments,
improved the land, made plantations, and erected buildings.
If, at this point, a bad harvest or ill-fortune prevents a settler
from paying an instalment when due, it is in the interest of the
undertaking—from the commercial point of view—to apply the
contract strictly, evict him from his holding, and replace him by
another. 1
Sometimes, and especially when the land to be settled is situated in a district known to be suitable for settlement but requiring
a good deal of clearing work which, when completed, will double
or triple its value, the settlement undertaking will attach small
importance to the success or failure of the first settlers. These
are usually farmers without capital, who hope to become owners
of the land through their labour alone. But they rapidly become
1

The contracts of commercial settlement undertakings generally provide
that if the settler is in arrears with his payments, the undertaking can seize
his holding without compensation. This clause is not usually applied in
districts still in process of settlement, where its too strict application might
harm the reputation of the undertaking ; a friendly arrangement is sometimes made in such cases, by which the settler receives compensation.
In
districts in which land has been finally developed, on the other hand, the
clause is applied ruthlessly, especially in regions where cultivation by
independent settlers is not the only possible system of farming, a n d where
the settlement undertaking is not obliged to replace the settler who fails
by another settler, but can easily lease the land to a farmer. Cases are
known in which holdings in such regions have been " settled " several times
in succession, the substantial payments made on account by the successive
settlers all remaining in the hands of the undertaking. Such cases explain
the unwillingness of farmers to do business with settlement companies.
Knowing t h a t a series of bad harvests may reduce the most capable settler
to a position where he can no longer meet his liabilities, farmers prefer to
continue renting their land rather than risk their savings.
Much attention has been given t o the question of legislation t o secure
adequate compensation for settlers who for any reason are obliged to leave
their holdings. Hitherto, however, no immigration country has passed

— 30 —

indebted t o t h e undertaking, in whose interest it is to make use
of its right t o evict t h e m and re-sell the land, now brought into
cultivation, t o clients who can " pay the price ". This process,
like others already described, could be illustrated b y concrete
examples taken from t h e records of commercial settlement. 1
The financial methods of commercial settlement, while often
irreconcilable w i t h t h e interests of the settlers (i.e. their transformation into landowning farmers), are frequently opposed also to
the general and u l t i m a t e purposes of settlement, which the private settlement company, anxious above all t o complete its
operations and m a k e its profit, is tempted to regard as equally
" non-commercial ".
If t h e prosperity of a settlement is to be assured in the long run,
the land must be divided up at the outset in such a way as t o provide holdings affording a livelihood for each settler when he
becomes owner of his holding, and also suitable sites for t h e common services a n d industrial and commercial establishments of the
settlement as a whole. Rational planning of this kind, however,
rarely suits t h e immediate interests of the commercial settlement
organisation, which is more likely to proceed quite otherwise. In
order to recover its money as rapidly as possible, it may begin by
selling the land for which it can demand the highest price, i.e.
t h a t situated nearest to the lines of communication, in which case
the future village, considered as a productive, trading, and social
centre, will find itself relegated from the outset to a position more
or less distant from the main road, harbour or railway station.
legislation of this kind, and private settlement organisations are firmly
opposed t o it, arguing t h a t it would prevent them from taking action against
fraudulent settlers. I t is only in official settlement schemes that protective
clauses are found. The statutes of the Settlement Institute of the Province
of Buenos Aires, for instance, provide that a settler turned off his holding
for failure to fulfil his obligations shall be entitled to the reimbursement of
75 per cent, of the sums which he has paid to the Institute and to compensation for any buildings erected or improvements made on the holding. If
a settler dies, the Institute returns to his heirs all payments made, as well
as the equivalent of all the capital he has sunk in his holding. The Bill at
present before the Argentine Congress for the creation of a National Settlement Institute contains detailed provisions for the compensation of settlers
in case of annulment of their contracts or death, and provides also for the
establishment of a special tribunal (comprising two farmers) to which
settlers can appeal if they consider t h a t they have been wronged. A further
example of legal regulation is provided by the Act governing the activities
of the Chilean Public Land Settlement Fund, which lays down that a settler
who abandons his holding for whatever reason shall be entitled to compensation
for necessary or useful improvements which he has carried out on it.
1
Cf. for example Herman FREDEN : Tatú kolonisiert in Südamerika,
Berlin, 1936.

— 31 —

Or it may deliberately limit the size of the holding sold to the
settlers, thus enabling them to pay off their debts relatively
quickly, but reserve land adjacent to each holding for sale later at
a higher price, when the settlers come to see that their holdings
are not large enough. Or again, desiring to " realise " the value
of the land in its possession, the organisation may encourage the
settler to buy a holding out of proportion to the labour and
capital at his disposal. A case of this latter kind occurred quite
recently. Immigrants were persuaded to invest nearly all their
capital in the purchase of excessively large holdings, and this led
to an over-rapid rise in the price of land and in wage rates : the
anxiety of the settlers to clear their land and bring it into cultivation as quickly as possible created a strong demand for labour,
of which the supply had already been reduced in consequence of
the extensive road construction work being carried out in the
district. Despite the prosperity of the country in general, a
local economic depression appears inevitable, and will be due to
three causes—the excessive price of land, the lack of working
capital, and abnormally high wages. A number of settlers will
undoubtedly be forced to sell their holdings, and a collapse of
land prices will follow.
Many other examples could be given of this conflict always
latent in the opposition between the immediate interests of the
commercial settlement organisation and the social purposes of
settlement. But our analysis of the problem will already have
sufficed to show that perhaps the principal cause of the insecurity
of the settler in his relations with the commercial settlement
organisation lies in the fact that the latter, in defence of its ordinary business interests, reserves the right to hold back or wind
up at any moment a settlement scheme in process of execution.
Every such scheme depends largely for its success upon regular
development—the regular arrival of new settlers, etc. The older
settlers can add appreciably to their income by providing the
newcomers with food and building materials, or by working for
them. Yet it frequently happens that a settlement company,
after dividing up and settling only a part of its land, finds that
it can make money more rapidly by selling the remainder en bloc
to individuals or companies which, in view of the development of
the district that has taken place, are prepared to pay a higher
price than the settlers can afford. The buyer may not intend to
settle the land, but rather to wait until its value has risen still

-

32-

further by the general development of the district; or he may
desire to settle it, but lack the experience or the technical and
financial means of doing so successfully. In either case the
original settlement scheme, providing for the systematic development of the whole district, is held up. As a rule, the settlers are
not sufficiently powerful, either individually or collectively, to
secure the carrying out of the general development work promised, however much they may need it. The execution even of
the most important of this work, though announced in highly
attractive colours in the prospectus, is not made the subject of
any precise engagement in the settlers' individual contracts, nor
is any compensation provided for in case of non-execution.
All these circumstances, with the element of insecurity which
they introduce, result, as we have seen, in restricting everywhere
the clientele and hence the field of action of commercial settlement
organisations. The rate at which these organisations succeed in
introducing alien settlers into the immigration countries does not
appear at present to exceed a few hundred annually. Their
activities are becoming limited more and more to the settlement of
nationals who, with their thorough knowledge of local conditions,
the practices of settlement organisations, agricultural methods,
and the minimum resources with which an experienced farmer can
keep going in any circumstances, need a less elaborate organisation than do immigrant settlers and generally know exactly to
what they are engaging themselves in signing settlement contracts.
It may be concluded that a revival of settlement movements,
and particularly of migration for settlement, which official services and settlement organisations of the social type are at
present not sufficiently developed to bring about, cannot be
expected to result from the action of commercial and speculative
settlement bodies.
Such a revival can be obtained only in the measure in which it
is found possible to develop and multiply organisations prepared
to invest the necessary capital, granting sufficiently long periods
for repayment, and ableto create in the settler's mind the certainty
that every effort will be made to ensure his success. Through the
creation of organisations of this kind, their development where
they already exist, the provision of the capital that they need,
and the financing of settlement work in general, a new impetus
may be given to settlement and migration movements.

-88In some cases, perhaps, these measures may be taken unilaterally; but as a general rule bilateral co-operation will prove
valuable, and often indispensable. Moreover, even measures
adopted unilaterally by single States to encourage immigration
for settlement will serve but to widen
pOssibilities of bilateral
co-operation; it is with a view to determining the forms in which
such co-operation can be carried on that these meaSures will now
be examined.

the

3

CHAPTER II
P O S S I B L E F O R M S OF A C T I O N

A distinction is commonly drawn between " independent settlement " and " group settlement ". This distinction, is however, far
from clear, since a migrant who starts out alone t o settle in a
foreign country usually goes there t o join a growing settlement,
whose other members may have been recruited in groups. Like
those groups, t h e independent settler will take his place in an
organised scheme, t h e conditions and methods of which will apply
to him as well as t o t h e m .
The distinction is mentioned here, however, because in other
respects it is n o t without significance. As a rule, an independent
settler has more capital than is a t t h e disposal of each settler in
a group. E v e n if t h a t capital is insufficient t o buy a farm and
cover t h e initial working expenses, the debt contracted will be
much smaller. Thus, t h e independent settler largely finances his
initial expenditure himself, whereas in the case of group settlement the money has t o be found mainly by t h e body responsible
for organising t h e settlement. But, even though in t h e case of
the independent settler t h e problem of finance is for this reason
not so acute, t h a t of security is as important as ever.
INFORMATION AND ASSISTANCE FOR I N D E P E N D E N T S E T T L E R S

Lack of security seems t o be one of the main reasons why
independent settlement is still comparatively rare, though this
form of immigration has always h a d a particular attraction, both
because it calls for a spirit of enterprise on the part of t h e settler
and because of t h e economic resources he brings with him.
Considering t h e substantial difference between the price of a farm
in a European country and t h a t of an equivalent undertaking in
an immigration country, it would seem t h a t there must be a
great many farmers' sons, for example, who, if only t h e y h a d

— 35 —
some capital to settle in an oversea country even though not
enough to set up as independent farmers at home, would be
prepared t o t a k e advantage of t h e difference in price if t h e y were
sure that, once they reached their destination, t h e y would
receive such guidance and assistance as would enable t h e m
t o avoid wasting their capital, their labour, and their t i m e .
I n the past, the absence of an organisation for t h e assistance
of independent settlers may have been felt less t h a n a t present.
I n some countries at least, an immigrant who had a little capital
could first accept paid employment as an agricultural worker, find
his way about in his new environment, and, after a trial period
t h a t might last as long as he pleased, invest his capital, knowing
what he was doing. The depression has made this impossible.
I n most immigration countries, an immigrant who intended to
work there for a time as a wage earner would, owing to unemployment and falling wages, run t h e risk of eating up his capital.
Some organisation is therefore necessary t o facilitate t h e immigration of independent settlers. The object should be, on the
one hand, to make sure t h a t persons who do not possess t h e necessary physical and vocational ability will not embark on a kind of
activity in which they are bound t o fail, and on t h e other hand, to
enable persons with the necessary qualifications t o settle on the
land under conditions t h a t will be most favourable t o success.
The essential problem is clearly t h a t of buying land. Most of the
immigrant's capital will be spent on this. H e must not only be
helped to find good land a t a reasonable price in an area whose
climate and conditions of work and life will suit him, b u t care
must be taken t o see t h a t after buying his land he still h a s enough
working capital or a t least does not contract a greater d e b t t h a n
he can bear.
Such assistance may be organised by the immigration country.
However, there do not yet appear to be any services in Latin
America, such as the Colonisation Branch of t h e Canadian Department of Immigration and Colonisation, whose duty it is t o direct
new settlers to areas where there is most chance of success and t o
see t h a t they do not have t o pay an excessive price for land.
Nearly all immigration laws, it is true, provide t h a t an information service should be set u p either for immigrants in general or
for those who wish t o settle on t h e land. B u t these services, if
they operate at all effectively, only publish and distribute from
time to time pamphlets describing agricultural life in the country

— 36 —
concerned. Such information is, no doubt, interesting, but it is
too general and not always sufficiently up-to-date to be of use to
a prospective immigrant settler. In cases where the State takes
a more or less active part in organising settlements, as in Argentina, Brazil and Paraguay, immigrants are supplied with detailed
information, but only in regard to official settlements and in so
far as lots are available in those settlements. Information as to
opportunities outside the official settlements can, as a rule, be
obtained only from persons and it may not be altogether disinterested.
No doubt it is difficult for a public department to give advice in
favour of or against the purchase of land or agricultural undertakings offered for sale by private persons. The department may
be suspected of partiality by both buyers and sellers, and is likely
to be blamed by the settler if he is unsuccessful. The problem,
however, seems to be one of organisation only. Information may
be collected and supplied in such a way as to avoid any suggestion
of propaganda. This end would be achieved if oilers ox land were
made on carefully prepared forms, giving all the information the
settlers require, the accuracy of that information being confirmed,
in so far as it can be checked, by the administrative department.
If the offers are classified in such a way as to be easily comparable,
and if they can be considered in the light of more general information supplied by the department itself about the area in question (average price of land, working capital normally required,
agricultural output, etc.), the interested parties would be able
to take a considered decision.
It is no doubt because this type of organisation is still lacking
in most immigration countries that some emigration countries
have had occasion t o set up information services attached to their
diplomatic or consular representatives. Clearly, however, such
services have great difficulty in collecting information, and this
cannot be complete unless it is organised and centralised by a
national department. It is also clear that these " immigration
counsellors " would find their work much easier if an official
technical body were to supply them with fuller information than
they can obtain from chance sources.
Most European countries, including Austria, Belgium, Czechoslovakia, Denmark, Germany, Great Britain, Italy, the Netherlands, Norway, Poland, Rumania, Spain, Sweden, Switzerland
and Yugoslavia, have in fact set up information services, more

— 37 —

especially since the war, either in the form of official bodies, or
with the help of private organisations that are recognised as being
of public interest. But the information at the disposal of these
services is, as a rule, too incomplete or not sufficiently reliable to
enable them always to give useful advice to emigrants who wish
to settle overseas. Only in a few emigration countries can such
services, with the assistance of the immigration counsellors
attached to diplomatic or consular representatives, give more or
less practical advice, at least in regard to certain opportunities for
settlement. Complete and objective information at first hand
could only be supplied by the administration of the immigration
country. If the immigration countries were to set up suitable
technical services, effective co-operation might be secured between
these and the information services of the emigration countries
either directly or through counsellors abroad. Co-operation
would to a large extent dispel the insecurity that at present paralyses the emigration of persons with some means, and would thus
make for a revival of a movement in which immigration countries
have always been particularly interested.

FINANCING OF SETTLEMENT SCHEMES

Whereas in the case of an independent settler, who usually has
enough capital, the only problem that arises is that of security
(and this may be solved by organising an adequate supply of
information), the position as regards group settlement is different.
In this case, the capital the settler brings with him is usually small
as compared with the funds advanced by the body responsible for
organising immigrant settlement. The limited means at the
disposal of these immigrants are nearly all absorbed by travelling
expenses, cost of equipment and installation, and any payment
made on account for the holding purchased. Thus settlers
recruited in groups start, not only without any reserves, but with
considerable commitments in respect of advances made by the
settlement organisation. These commitments can only be met
out of earnings. If the settlement organisation fails to carry out
the development works that would enable settlers to farm at a
profit and does not allow enough time for the repayment of the
debt, the settlers are bound to come to grief. Thus the problem
of finance is, in this case, of primary importance and is moreover

— 38 —

intimately connected with that of security, since the settlers'
chances of success depend mainly on the adequate financing of
the scheme.
Any settlement scheme involves the grant of more or less
substantial loans by the responsible organisation. The aggregate
amount of these advances is, however, ultimately limited by the
settlers' ability to repay their debts. It therefore follows that,
as in the past, settlement in certain areas is at present possible
only if the public authorities take steps to reduce the cost to a
level at which the venture pays its own way.
The capital investment required may in the first place be reduced by administrative measures to diminish the cost of carrying
out a settlement scheme. In the second place, the public authorities may either advance or help to raise the funds that will have
to be invested by the settlement organisation. In the third place,
so far as the settler can himself bear certain charges, so that the
amount to be advanced by the settlement organisation can be
correspondingly reduced or more quickly recovered (cost of transport, initial expenditure on establishment, cost of maintenance during the first few months, a payment on account for
the holding), the public authorities may, by making it easier
for the settler to meet this expenditure, assist in improving
opportunities for settlement. Finally, the public authorities
may help the settler to obtain credit from third parties and
thus reduce the financial burden to be borne by the settlement
organisation.
Accordingly, the measures that States may take to facilitate the
financing of settlement schemes may be classified under four
headings :
1. Measures to reduce the cost of settlement, or, in other words,
the total amount of capital required to carry out the scheme,
whether such funds are to be supplied by the organisation
or by the settler, or to be advanced to one or the other by
credit institutions;
2. Measures respecting the capital requirements of the settlement organisation;
3. Measures respecting the settler's capital requirements;
4. Measures respecting loans that the settler may be granted by
third parties and that are likely to lessen the burden borne
by the settlement organisation.

— 39 —
All these measures may, up t o a point, be taken unilaterally by
t h e countries concerned. Nevertheless their scope and efficiency
may be considerably extended and increased if systematic
co-operation both in technical and in financial matters is instituted
b y agreement between the countries concerned. The opportunities for public action on the above lines will now be considered
seriatim.
1. Measures

to Reduce the Cost of

Settlement

A great variety of measures come under this first heading.
Their purpose may be t o reduce the expenses t h a t t h e settlement
organisation has to meet on t h e spot, or again certain costs t h a t
the settlers (or, failing these, the organisation) incur before being
established on their holdings. Measures to reduce the cost of
settlement, unlike the three other kinds of measures, which do
not as a rule involve irrecoverable contributions, mean t h a t the
public authorities must bear some of t h e expense or, at a n y rate,
relinquish certain receipts.
Immigration countries, in order t o promote settlement within
their territories, and emigration countries, in order t o facilitate
t h e establishment of their nationals abroad, have at various times
t a k e n measures t o reduce t h e cost of such settlement. These
measures relate to various aspects of settlement activity.
Recruitment of settlers
Recruitment may entail substantial expenses, particularly when
t h e settlement has its headquarters in t h e immigration country.
These expenses may be appreciably reduced if the competent
services in t h e emigration country help t h e representatives of t h e
settlement organisation t o recruit and select settlers. A p a r t from
any direct saving to the organisation due to such aid, t h e quick
a n d punctual recruitment of settlers who fulfil the required conditions also saves time and may t h u s substantially reduce t h e cost
of settlement. For if time is wasted owing t o badly organised
recruitment, the settlement organisation either loses interest on
a n y capital already invested or avoids this by increasing t h e sale
price of the holdings and ultimately the financial burden borne b y
t h e settler. Moreover, if recruitment is badly organised, settlers
may reach their destination a t a time when they cannot usefully
s t a r t farming; they may thus be obliged to remain completely or

— 40 —

partly idle for some months, during which costs of maintenance
unnecessarily accumulate.
Assistance given by the authorities of emigration countries to
facilitate the recruitment of settlers not only promotes more
satisfactory selection, but may also appreciably reduce the cost
of settlement. 1
1
Recourse to the help of the competent services in emigration countries
is nowadays more or less compulsory when recruiting settlers. Some
emigration countries have, with a view to protecting emigrants against
unsound settlement undertakings, prohibited all unlicensed recruiting of
settlers. Italian law provides that anyone wishing to recruit settlers for a
foreign country must obtain a licence from the Commissariat of Emigration,
the grant of a licence being subject to compliance with certain conditions.
Under section 51 of the Polish Legislative Decree of 11 October 1927,
emigrants may not be recruited for settlement abroad except under a licence
issued by the competent authorities. Such licences specify the period for
which they are granted, the number of emigrants t h a t may be recruited, and
the moral, material, and health conditions to be guaranteed during transport
and in the country of immigration.
Under section 41 of the new Swiss Regulations, dated 5 February 1937,
settlement undertakings must, before they may operate at all in Switzerland, and more especially before they may be represented and carry on
propaganda there, obtain a licence from the Federal Council, the terms on
which the licence is granted being fixed by the Council in each particular
case. The Federal Council must be supplied with the fullest information
on the undertaking including details as t o the mutual obligations contracted
by the undertaking and the settlers.
Settlement undertakings are defined as bodies whose object it is to direct
emigrants to specified foreign countries in Europe or outside Europe with
a view to setting u p or developing agricultural, industrial or craftsmen's
undertakings in those countries.
The publication of advertisements and the supply of information, for
purposes of propaganda, about settlement undertakings which are not
licensed by the Federal Council is prohibited.
Section 42 prohibits public advertisements and all kinds of activities,
such as the issue of press reports, the holding of lectures, collections, and
cinema shows, etc., which aim at inducing people to emigrate to oversea
countries or are likely to mislead persons wishing to emigrate to such countries. These activities are punishable even if committed without any
fraudulent intention. When no useful purpose would be served by prosecuting the author of such publications in the press, the proprietor of the
newspaper concerned or, failing the proprietor, the printer is liable. Emigration associations t h a t carry on illegal activities are to be treated as being
themselves illegal (sections 52 and 78 of the Civil Code).
Under section 43 no emigration contracts may be concluded, except under
a licence granted b y the Federal Council, with persons whose travelling costs
have been advanced or paid in full or in part by foreign societies, institutions,
undertakings, or Governments.
On 24 June 1937, in pursuance of section 6 of the Emigration Act of
15 February 1922 as amended in 1936, the Czechoslovak Government issued
a Decree regulating emigration for land settlement.
Section 1 of the Decree provides that any application from a commercial
company for permission to recruit settlers for a foreign country must be
accompanied by all the necessary documents concerning the constitution
of the company. If the company is a foreign one, it must also specify t h a t
it accepts all the obligations imposed by the statutory provisions on settle-

— 41 —
Assistance in the recruitment and selection of settlers may be
supplemented by vocational training given in the emigration
country before the settler leaves. By way of example, reference
may be made to the farming schools in the Netherlands, where
young persons wishing to go to Canada have been trained since
1923, and the training centres in Great Britain, where young
persons wishing to settle in British Dominions or colonies may
study various subjects (other than agricultural operations proper),
a knowledge of which will help them to instai and work their
farms, e.g. repairs to equipment and motor tractors ; elementary
training in carpentry; dairy work; etc.
Where there is collaboration between an emigration and an
immigration country, it may usefully cover certain measures of
this kind, more especially to complete the vocational training of
would-be settlers.
Consular fees
It sometimes happens that emigrants who intend to settle on
the land in a foreign country are exempted from the payment of
certain visa fees. In Argentina, for example, where substantial
fees are payable for passport visas under the regulations at present in force, as a means of restricting the immigration of wage
earners, these fees are refunded to the settler as soon as it is proved
that he has reached his destination. The Immigration Act in
Guatemala provides that settlers shall be exempt from the
payment of consular fees, including the cost of the passport visa
and other certificates needed. In other countries, e.g. under the
ment undertakings and must appoint a Czechoslovak national as its responsible representative. Applications for a licence must also be accompanied
by a settlement scheme approved by the authorities of the immigration
country. Details must be supplied in regard to all the factors t h a t are
essential to the success of the settlers, including : (a) the financial estimates
of the scheme ; (b) the number of farmers' families to be established in the
settlement; the qualifications and aptitudes required, and the capital they
must possess; the immigrants engaged in other occupations who are to be
represented in the settlement, and the collective institutions t h a t are to be
set up ; (c) the minimum area of a holding of land, the state in which the
land will be handed over to settlers, the purchase price, and the conditions
of payment ; (d) the manner in which the settler is to obtain a dwelling and
other equipment ; (e) the income settlers are likely to earn ; (f) the possibility of setting up an undertaking for working up the raw materials produced
by the settlers, and of organising it on co-operative lines ; (g) the vocational
training of the settlers. Finally, the application must be accompanied by
a plan and description of the settlement.
Under section 5, recruitment is t o be carried out in the manner prescribed

— 42 —

Braziilian regulations, settlers are excepted from the provision as
to the capital sum that other categories of immigrants are usually
required to possess.
Transport costs
The very high cost of ocean transport has always been a serious
obstacle to migration for land settlement, particularly in the case
of farmers accompanied by their wives and children and sometimes by other relatives. Accordingly, States that wish to encourage this kind of migration have often taken steps to reduce such
costs. In order to increase their population, a large number of
new countries formerly adopted a system of assisted passages, and
most of the immigration and land settlement laws passed in South
American States bear traces of this policy. But although the
relevant provisions have not been repealed, they are only applied
in exceptional cases to-day, at any rate as regards maritime transport. Even in the past, owing to the lack of financial resources,
the provisions were applied only intermittently. Moreover,
where the system of assisted passages has been applied to workers'
immigration in general, it has often had an adverse effect on the
quality of the immigrants, more especially because the recruiting
agents, who only thought of increasing the amount of their
commission—this being proportionate to the number of immigrants they introduced—nearly always failed to apply the prescribed standards of selection. That is not a reason, however, for
abandoning a system which, if judiciously applied to immigrants
who have been selected with a view to carrying out a carefully
devised scheme of land settlement, would not involve the same
drawbacks. The only issue is whether States are sufficiently
interested in migration for settlement to encourage it by means
by the Ministry of Social Welfare, which must approve the standard contracts to be concluded with settlers. The Decree provides in section 6 t h a t
such contracts must be in writing and must give : the name and address of
the settlement undertaking; the full name, age, sex, etc., of the settler and
of any relatives accompanying him ; an exact description of the holding ; a
statement of the real and movable property comprised in the holding ; the
purchase price and conditions of payment; the date of possession; an undertaking to refund to the settler or his heirs the price of the holding or payments
on account if he is unable, owing to sickness or other force majeure, to take
possession of the holding ; an undertaking to refund half the purchase price
or payments on account if the settler terminates the contract for some
other reason; an undertaking to refund the purchase price or payments on
account and to repatriate the settler and his family if, owing to the fault
of the settlement undertaking, the settler cannot take possession of the
promised holding.

— 43 —

of assisted passages. If the reply is in the affirmative, there
seems to be no reason why the relevant provisions that already
exist in several States should not be applied.
In the Argentine Republic, the Act of 1878 provides that the
resources available for promoting immigration may also be used
to refund passage costs. Under the Bolivian Act of 1927, the
special propaganda funds may be used to pay the cost of fares to
private transport undertakings. Under the Brazilian Act of
1911, the Federal Government may take steps, if spontaneous
immigration proves insufficient, to promote the admission of
trained agriculturists who satisfy certain moral standards and
wish to settle in the country, with their families, as peasant proprietors; the Federal measures are to be taken in agreement with
the several States, but independently of any similar measures that
individual States may take. The Federal Government may also
refund the cost of their passage to immigrants who have come to
settle on the land, provided they apply within two years of landing
in Brazil. In practice, up to recent date, immigrants who came
to official settlements were refunded the cost of maritime transport
by means of an equivalent reduction in the price of their holding.
Similar provisions are to be found in the laws and regulations of
several Brazilian States and even in comparatively recent enactments (Pernambuco, Act of 9 April 1925; Minas-Geraes, Regulations of 24 September 1925; Bahia, Regulations of 4 January
1926). Nowhere, however, has the system of subsidising maritime transport been practised on a bigger scale than in the State
of Sào Paulo. Here the provisions were again enforced, after a
brief interruption, two years ago. This State, it is true, only pays
the cost of transporting the families of agricultural workers
recruited for employment on the fazendas, but there is nothing to
prevent these workers, after they have completed two or three
years' paid employment, from being established as independent
settlers in accordance with a pre-arranged scheme.1
Under an Act of 30 December 1922 the Colombian Government
has power, within the limits of the sums at the disposal of the
Immigration Fund, to subsidise the passage of immigrants. In
Peru, the President of the Republic may approve the grant of
funds to cover the passage costs of settlers. Such grants have
been made on several occasions and more especially at the begin1

See p. 62.

— 44 —

ning of 1927, when Italian, Polish, and Spanish settlers were
introduced.
Less frequently the cost of maritime transport has been covered
by the Governments of the emigration countries, but only in the
case of emigration schemes the soundness of which could be
guaranteed. In 1923 Switzerland paid the travelling expenses of
a number of emigrants going to Canada. Japan is practically the
only emigration country that regularly pays such subsidies. The
practice was introduced after the great earthquake of 1923, when
the Government offered to pay the passage to Brazil of persons
who had been affected by this disaster. This measure, which was
introduced to meet a passing emergency and was only intended
to apply to a limited number of emigrants, subsequently became a
permanent one. It now applies to all agricultural workers and
their families who emigrate to South American countries.
In between the two systems of assisted passages, granted by
the immigration country and the emigration country respectively,
there is a third, which is the result of international co-operation.
Before the war, the British Dominions had taken over during the
periods when immigration was being subsidised the whole cost of
transporting immigrants. Under the new policy of collaboration
in land settlement and immigration questions, instituted by the
Imperial Conference of 1921, passage costs, which are considered
as a serious obstacle to the development of land settlement, are
borne jointly by Great Britain and the Dominions concerned.
Until 1921 the subsidy thus paid covered the whole cost. Since
that date, at the suggestion of Canada, preference has been given
to a system of partial subsidies, enabling the immigrant to pay
for his own passage at a substantially reduced rate.
Although sea passages are now rarely subsidised, most immigration countries usually provide for the free transport of settlers
from the port of arrival to the settlement.
Among the various problems that a settler has to face before he
leaves his own country, that of transport costs is of paramount
importance, since payment cannot be deferred as in the case of
other costs. The problem has become still more acute recently
owing to the economic depression from which farmers have
suffered severely.
Before the depression, and particularly before the war, small
farmers who wished to settle abroad were able to pay for their
passage out of the proceeds from the sale of property or even out

— 45 —
of savings. Moreover, t h e passage was frequently paid for b y
t h e Government of the immigration country. To-day, owing t o
the agricultural depression, the price t h a t can be obtained from the
sale of land has fallen t o a very low level indeed, a n d small
farmers who wish to emigrate no longer have any savings b u t only
debts. Moreover, while the income of t h e peasants was diminishing, transport rates were substantially increasing, pari passu
with an appreciable improvement in conditions on board ship.
This may be seen from t h e following typical examples :
I n 1914 a settler travelling t o South America in a German ship
paid about 160 marks as a steerage passenger. Now a third-class
ticket (this having been substituted for steerage) to Buenos Aires
costs between 340 and 380 RM. 1 according to tonnage a n d t h e
quality of the accommodation provided. The cost of the passage
has therefore increased about 125 per cent.
Similarly, in 1914 the fare from Warsaw to South America, a t
t h e reduced rate allowed to settlers, was 40 dollars. To-day t h e
same journey, a t the reduced rate, costs 667.50 zloty or a b o u t
125 dollars, the increase thus being 212 per cent.
I n 1913 the passage from Liverpool to Canada cost £5 15s. ; in
1927 it cost £18 13s., or 260 per cent, more. 2
The disproportion between the means of would-be emigrants
a n d the cost of transport appears t o be one of t h e main reasons
why emigration for settlement has stopped or fallen off.
For instance, it has been estimated in Poland, where t h e owner
of a small farm can barely raise 1,500 t o 2,000 2¡loty b y selling
all his property, t h a t it would cost him about 4,200 Zloty, of which
80 per cent, would be spent on transport by sea, to leave for
Brazil with a family of five persons. 3
Customs duties
Immigration laws usually exempt settlers from t h e p a y m e n t of
all duties, not only on personal belongings t h a t are no longer new,
1
These were the rates charged by the " Hamburg Südamerikanische
Dampfschiffahrt-Gesellschaft " in July 1936 for the least comfortable accommodation, which is described as 3. Klasse-Wohndeck.
The German emigration authorities advise emigrants to travel 3. Klasse-Kammer, which costs
50 RM. more.
2
Cf. Hubert HENOCH : " Die Empire-Settlement-Politik Grossbritaniens "
in Archiv für Wanderungswesen, 1929-30.
8
Industrial and Labour Information, Vol. L X I , No. 9, 2 December 1935,
p. 351.

— 46 —
but also on any furniture, utensils, and farming or other implements they may bring with them.
Cost of maintenance

after arrival

In most immigration countries there are hostels where immigrants are boarded and lodged at State expense until they leave
for t h e settlement, and are given t r e a t m e n t in the event of illness.
Sometimes free b o a r d is also supplied throughout the journey t o
the settlement. I n some cases settlers even draw subsidies after
arrival a t their destination. Under a Decree issued on 30 December 1926 in Ecuador, such subsidies may be made for six months
or even a year n o t only to immigrants established on State
settlements b u t also t o those brought in b y a private settlement
undertaking. I m m i g r a n t s established on official settlements
may further be allowed special facilities, such as maintenance for
a comparatively long period, the supply of seed and tools, and
sometimes livestock, free of charge. These facilities, t h e extent
of which usually depends on the available resources, are granted
in virtue of special administrative decisions as each case arises.
Taxation
The fact t h a t there has so far been little recourse to fiscal
exemption as a means of facilitating the financing of land settlement is no d o u b t due t o the very low rates of direct taxation
t h a t applied for a long time in immigration countries. Exemption from taxes has only been allowed occasionally, and in its
simplest forms, t o settlers or official organisations for promoting
land settlement. The law in Paraguay exempts settlers from the
payment of land t a x for five years from the date they become
landowners, whatever the t y p e of settlement involved, i.e. whether
organised by t h e State, b y private undertakings or by estate
agents. The L a n d Settlement Act of the Brazilian State of Bahia
exempts settlers from all taxes, without, however, stating how
long such exemption is t o last. I n Guatemala the Immigration
Act exempts " immigrants " from all direct or indirect taxes for
five years. Lastly, under the Venezuelan Act of 22 July 1936,
persons living on official or private settlements may be exempted
by t h e Federal Government, for such time and on such conditions
as may be deemed expedient, from the payment of all existing
direct taxes a n d any t h a t may be levied in the future.
Such

— 47 —

exemptions, if t h e taxes are at all appreciable, should clearly
improve the settler's chances of making good.
In t h e official promotion of land settlement, t h e issue was of
no practical significance t o t h e settlement services themselves so
long as they confined their activities t o land owned b y the State,
for they had no taxes t o pay on land where they were responsible
for developing settlement, and they delivered title deeds free of
conveyancing and registration charges. When, however, t h e
State undertook more recently t o promote settlement on privately owned land t h a t had first t o be bought u p and was subject
t o the usual taxes, it was soon found t h a t t h e burden of various
duties and taxes was by no means insignificant. Accordingly,
t h e more recent official institutions have obtained exemption
from taxes. On such occasions exemption has also been granted
to settlers. Thus, under the Act governing the activities of t h e
Chilean Land Settlement Fund, no t a x is payable on t h e transfer
of the title to holdings or on other transactions between t h e F u n d
and t h e settlers. In t h e Argentine Republic t h e Act setting up
an autonomous Settlement I n s t i t u t e in the Province of Buenos
Aires exempts t h e holdings for five years from all provincial and
municipal taxation. The Bill laid before Congress by t h e Argentine Government t o set up a National Settlement I n s t i t u t e
provides t h a t no taxes or stamp duties shall be payable on t h e
transactions of t h e Institute, and t h a t t h e purchasers of holdings
shall be exempted from all national taxation on real property for
a period of ten years from t h e registration of the title deeds.
Further, the Bill provides t h a t when drawing up settlement
schemes, the Institute shall for preference select estates situated
in provinces which undertake t h a t t h e land it buys for settlement
purposes will be exempt from the land t a x for five years, t h a t
the settlers on becoming owners of their holdings will also be
exempt for not less t h a n t h e same period, and t h a t no taxes or
stamp duties will be charged on the Institute's transactions.
Thus fiscal relief t o facilitate t h e financing of land settlement
is a real issue. Some day there will no doubt be grounds for
extending some of these exemptions, if not to purely commercial
settlement undertakings, at any r a t e t o private undertakings of
the social type. In several countries the system of taxation is
at present unfavourable to them, more especially as regards two
of its most modern features, progressive taxation and absentee
taxation. The former, which is designed t o counteract large

— 48 —
ownership, bears rather hardly on all settlement undertakings,
which have t o buy up land on a large scale. The latter also
penalise them, for being set u p as joint stock companies, they are,
physically, absentees with respect t o t h e land where t h e settlement is organised. Here t h e system of taxation comes into
conflict with t h e promotion of land settlement, though both have
the same object in view. Increased taxation, the simultaneous
levying of different kinds of taxes, and t h e multiplicity of local
taxes would seem to hamper land settlement seriously nowadays.
Acquisition

of land

In several immigration countries, most of t h e land, and particularly t h a t which is best situated or of t h e best quality, has
already passed from the S t a t e t o private persons. To promote
the settlement of certain areas t h e State is sometimes obliged to
buy back land at t h e current price. W h a t land still belongs t o
the State in other districts is now reserved in a great m a n y counState necessarily engages in settlement schemes in t h e technical
sense, with all the assistance for settlers t h a t this implies, b u t t h a t ,
in order t o stop speculators from continuing t o acquire large areas,
the laws in force provide t h a t the land m a y be sold only in lots
of a limited sizje t o farmers who are prepared t o settle and farm
there themselves. Official settlement services are often content
t o develop road systems, survey the land, break it u p into lots,
and sell it for cash or by instalments t o purchasers who are
capable of farming their holding without further assistance. 1
However, even in countries where publicly owned land is as a
rule reserved for official settlement schemes, t h e existing regulations do not always entirely exclude the possibility of schemes
being organised on t h a t land b y private bodies providing the
necessary security. For instance, an Argentine Decree of
15 J a n u a r y 1924, giving the D e p a r t m e n t of Lands and Settlement
power t o assign lots of 2,500 hectares, suitable for settlement, to
groups of immigrants consisting of twenty-five families, would
1
T h a t is the current practice of the official settlement services in most
Latin-American countries. In Brazil, however, the State, besides carrying
out the simpler operations of breaking up estates and selling land, also
organises real settlement schemes, involving the development of the holdings
before sale (they are often sold with a dwelling house already built, the price
of which is included in that of the holding) and the grant of various loans
t o settlers, together with regular technical assistance.

— 49 —

seem to permit of entrusting the establishment of foreign settlers
to a private concern. Indeed that seems to have been the purpose of the Decree.
In other immigration countries, where the State still has large
reserves of land, private settlement organisations continue to
acquire the more or less extensive areas they need by purchase
or concession. Sometimes the concession is granted or the land
sold only on certain conditions, these being laid down in the
contract. It is, however, common knowledge that this method
does not always yield satisfactory results, and that where the
State has finally decided to keep a monopoly of settlement
activities, even though progress may prove slow for lack of funds,
the object is precisely to stop State land from passing into the
hands of speculators for alleged settlement purposes. Even in
Brazil, where there is no scarcity of land, the State of Rio Grande
do Sul has decided to grant no more concessions of land for settlement to private persons or undertakings, which, as the President
of the State declared in 1926, " are more concerned for their
own interest than for the general good ". Under a system of bilateral co-operation, however, it might conceivably be to the advantage of immigration countries to grant concessions as a means of
promoting the work of the organisations of the social type which
would be responsible for settlement activities on condition that
they gave the States concerned all the necessary guarantees.
However that may be, if a settlement organisation is obliged
or prefers to buy privately owned land, it will have to pay the
usual price and will not be granted any financial facilities in view
of this special purpose. If, on the other hand, it undertakes to
promote settlement on publicly owned land, the State may in
various ways substantially help to ease the financial arrangements.
The State may part with land, if not free of charge, at any rate
at a reduced price, when the settlement organisation concerned
can guarantee that the scheme will be properly carried out.
A usual practice is for the land to be granted free of charge or at
a reduced price in return for an undertaking to carry out certain
general works, such as road building, in the area in question.
If payment is asked for the land, the State may accept instalments,
thus reducing immediate capital requirements. Finally, the
State may reserve an area, mapped out in advance, for the settlement concerned and only take payment by sections as progress
is made with the scheme.
i

— 50 —
General development

works

As has already been pointed out, the amount of t h e funds t h a t
a settlement organisation can invest without risk of loss is ultimately limited b y t h e settlers' ability t o repay advances. When
the necessary expenditure on general development works, in
particular t h e means of communication, is too heavy for t h e
promoters, the schemes cannot be carried out unless t h e cost of
t h e works in question is borne by a third party. As a rule t h e
works have t o be carried out b y the State or by concessionholders. The e x t e n t t o which public authorities are able to assist
in promoting land settlement b y carrying out the essential
development works themselves will depend on their financial
resources. The ability of private concession-holders t o carry o u t
such works is limited not only by the amount of t h e private
capital t h a t can be raised b u t also by the general policy of t h e
immigration S t a t e in regard t o public works and investment.
Subject t o this last reservation, it seems conceivable that, if international co-operation t o promote land settlement could be instituted, the emigration country might use its influence to make t h e
necessary capital available for carrying out general development
works. This m i g h t be done b y approaching either t h e financial
establishments of t h e emigration country itself or those of some
other country. According as t h e works are carried out either
directly by t h e Government of t h e immigration country or b y
concession-holders, it will be necessary either to market Government securities or t o facilitate t h e raising of the capital required
by the concession-holders.
Bilateral co-operation t o promote land settlement would t h u s
incidentally provide an opportunity for another and wider form
of co-operation in carrying out important development works. I t
should be noted t h a t when t h e works are very costly, they can
be financed in direct connection with a land settlement scheme
only if t h a t scheme is designed to bring about a considerable
increase in population. I n t h a t event it might be worth while
drawing u p a v a s t financial programme, the scope of which
would include b o t h development works and land settlement. 1 As
1
Nearly all the really important development works carried out in new
countries have h a d no direct relation to land settlement schemes, since these
do not usually take shape before the development works have been completed. Reference can only be made to two cases in which railroads have been

— 51 —
a rule, however, the land settlement schemes that can be carried
out as a result of bilateral co-operation will not be so vast in scale,
at any rate not in the immigration countries of Latin America,
since they usually object to the formation of homogeneous
ethnical groups of considerable size.
While, therefore, it is conceivable that joint investigation of
opportunities for land settlement might incidentally lead to
interesting suggestions for development works, it must be
admitted that the two sets of problems are quite different.
Development works that are planned on too large a scale for
inclusion in a land settlement scheme call for a special system of
finance. Moreover, they raise problems that bear on the general
public works policy of the immigration State, on its financial
and currency policy, and, if the works are to be carried out with
the help of foreign capital, on its general view of foreign capital
investments. 1
built in direct connection with a settlement scheme. In the Argentine
Chaco, the State is at present extending its railway system in order t o open
up new State-owned land for cotton plantations. In the Brazilian State of
Pernambuco a very powerful settlement company has acquired a concession
of 12,000 square kilometres and is building its own railway to connect the
area under development with the Säo Paulo railway system. Concessions
of land used quite often to be granted free of charge or at a reduced price,
provided the beneficiary undertook to build railways or roads. This practice
is still fairly common in some countries, but the concession-holder seldom
undertakes to organise the settlement himself. He reserves the right to
dispose of the land in such manner as will best serve his own interests. If
he needs funds in order to build more rapidly, he will usually sell oft' large
areas, or if he has definitely undertaken to break up the land and place
settlers on it, he will entrust this work to private undertakings t h a t are
prepared to take it on.
Another example of general development works directly connected with
land settlement is also to be found in an agreement concluded in 1925
between the British Government and the Australian Commonwealth Government. This is also an example of bilateral co-operation. Under the agreement the Commonwealth Government undertook to raise loans not exceeding
£34,000,000 for issue to the State Governments, to be expended on " developments which tend directly or indirectly to increase the opportunities for
settlement (in Australia) of persons from the United Kingdom." The
intention was that 450,000 persons from the United Kingdom should be
satisfactorily settled in Australia within ten years. The British Government's contribution towards carrying out the plan was undertaking to pay
£150,000 for every principal sum of £750,000 issued to a State Government
for carrying out " agreed undertakings " for development and settlement.
For every contribution of £150,000 towards development schemes the
Government undertook that 10,000 assisted emigrants should be satisfactorily settled in the State within ten years ; in respect of contributions towards
land settlement schemes, the State was to absorb, somewhere within its
territory, one family for every farm created. Up to 31 December 1930
schemes estimated to cost nearly £9,000,000 had been approved, but in 1932
the agreement was terminated, in view of the economic situation.
1
On the other hand, bilateral co-operation in the financing of land

— 52 —
It may be added that provision is sometimes made by law that
certain development works, more especially within the area of
the settlement, shall be carried out at State expense. For
instance, in virtue of a Decree issued on 24 August 1926 in the
State of Rio de Janeiro to promote land settlement, the Government undertook to have such means of communication as were
necessary to the development of the settlements built or improved
if the settlements were promoted by private undertakings under
a contract concluded with the State. Regulations issued on
24 September 1925 in the State of Minas Geraes provide that in
order to encourage the organisation of land settlement by private
concerns, the State may survey land free of charge in private
settlements and pay half the cost of building the settlers' houses.
Under the laws and regulations of the State of Sao Paulo the
Government may organise settlements jointly with private
undertakings, carry out the land survey, and buy half the lots.
2. Measures respecting the Settlement Organisation's
Capital Requirements
It has already been pointed out that the problem here is not
merely one of finding capital, but of finding capital that will wait
long enough to allow of making the substantial long-term investments required for land settlement in certain areas, and of giving
the settlers enough time to pay off their debt. The issue is
somewhat different according as the settlement organisation is an
official institution or service of the immigration country or a private organisation.
Official settlement organisations
Official services or institutions have usually been set up in
order to give settlers greater security, but also, and above all, to
provide land settlement schemes with capital that can be invested
for a fairly long time. The State can raise that capital in two
ways : either by making the necessary provision in its budget; or
settlement does not seem to raise any important question of general policy.
An essential feature of investments in land settlement is that they are refunded by the settlers themselves within a limited number of years. They are
quite temporary investments, and the funds, if advanced by emigration
countries, automatically return to them.

— 53 —
by issuing bonds bearing a fixed rate of interest and guaranteed
by it.
The possibility of making appropriation out of the budget is
limited by t h e state of public finance a n d t h a t of issuing bonds
by the state of t h e capital market. On t h e other hand, as has
been stated elsewhere, t h e capital t h u s raised for official land
settlement is often reserved for t h e establishment of settlers who
are nationals of t h e country concerned.
If the official settlement services have not enough funds to
establish immigrants, they may have to obtain those funds from
the emigration countries.
If the services in question are merely administrative services
without any financial autonomy, it is hard to conceive of their
being supplied with funds by emigration countries. I n t h a t case,
if t h e emigration countries wish t o help t o finance the establisment
of their nationals, they must do so b y granting subsidies or loans
t o individual settlers.
However, now t h a t autonomous institutions for t h e promotion
of land settlement have been set up in several immigration countries, new methods of bilateral financing may be contemplated.
I t has often been pointed out t h a t where such institutions are
financed by the issue of bonds, they would be able t o establish
immigrants in more or less direct proportion t o t h e n u m b e r of
bonds t h a t the Governments of emigration countries would undertake t o place in their own financial market or to t a k e u p themselves. That would no doubt be t h e simplest way of organising
the establishment of immigrants with t h e assistance of fully
qualified settlement services such as would afford t h e settlers t h e
necessary security and convince t h e m t h a t every possible step
would be taken t o ensure their success. Bonds guaranteed b y t h e
immigration State could be easily negotiated and, since the
conditions as regards interest and repayment would be t h e same
in all cases, the method would operate uniformly and therefore
simply for all emigration countries. I n order t h a t t h e bonds
might be more easily marketed, they might be guaranteed b y the
emigration as well as the immigration State. This would, for
instance, afford protection against movements in exchange rates.
I t is also conceivable, in the case of autonomous settlement
institutions, and more especially when t h e resources of these
institutions are derived not from t h e issue of bonds b u t from
special budgetary appropriations, sometimes supplemented b y the

— 54 —
proceeds of the sale or lease of State lands, that the emigration
country (or its financial institutions) might grant them a credit
proportionate in amount to the number of its nationals who
would be established as settlers by the institutions, the conditions
for the repayment of the credit being settled in advance in a plan
for bilateral co-operation. The settlement institutions could all
the more easily undertake to repay such credits if the use to which
these would be put were also agreed upon beforehand, thus substantially reducing the risk assumed by the institution. The
credits might, for instance, be used for building and improvements,
whose value t o the settlement institution would not be diminished by the failure or the withdrawal, for whatever reason, of
individual settlers. They might even be used to buy equipment
that the institution could easily seize at any time.
Private settlement organisations
If in the immigration country there is no official service that
could carry out a given scheme, or if for some reason or another
it were preferable not to have the scheme carried out by the
official organisation, recourse might be had to a private organisation, which might perhaps have to be set up for the purpose.
According as the capital has to be raised mainly in the emigration
or in the immigration country, it will be for the one or the other
to set up the organisation and take the necessary measures to
facilitate the raising of capital.
Clearly neither the emigration nor the immigration State can
take such measures unless it has an assurance that the private
organisation in question will not set about promoting settlement
on a purely commercial or speculative basis, but will, in carrying
out its task, take into account the social or " non-commercial "
aims of settlement, which alone can justify State intervention on
its behalf. As has already been stated, this guarantee can be
found only in the structure of the settlement organisation itself.
Since private organisations of the social type are still rare, they
will in most cases have to be set up, and it is when this is being
done that it will be necessary to see that recourse to private
capital shall not allow speculation to outweigh the social purposes
of the scheme.
The problem is how to find private investors who are prepared
to forgo freedom of speculation in cases where the aim of maximum
profit is not compatible with the social purposes of settlement.

— 55 —
Of course, the State may itself provide part of the capital, which
would then, by definition, be capital intended for social purposes ;
or, again, it might approach public financial institutions, with a
view to their participating in the financial arrangements on the
same lines. In the first part of this report, reference has been
made to cases in which part of the capital has been provided by
the State or by financial institutions under State control. The
rest of the capital must in such cases be raised from private
sources, but here again the States may influence certain groups to
which the operation might prove interesting not merely as an
investment, but in view of the benefits to be secured in other
respects.
Recourse might be had to industrial groups that are interested
in the supplies required under the settlement scheme, and would,
in view of the profits they might earn in this way, be prepared to
share in financing the settlement organisation on moderate terms.
Other industrial groups might be interested in the scheme as
prospective buyers of the settlement's produce. There are, it is
true, few examples of financial participation based on the latter
consideration, for only in very special cases have industrial
undertakings anything to gain by buying from one producer
rather than another. Such cases have, however, occurred. In
one, the capital of a land settlement undertaking with social
aims was mostly found by a group of textile manufacturers who
were anxious to make sure of regular supplies of a certain quality
of fibre. In another case, an industrial undertaking that did not
directly participate in setting up a settlement agency by contributing capital did nevertheless help to develop the settlement by
opening large industrial establishments to work up certain kinds
of tobacco. The settlers undertook, for their part, to cultivate
those kinds of tobacco, and thereby also increased their profits.
In a third case, a large fruit-canning concern found it worth while
opening, on a settlement organised by an official institution,
industrial establishments which will ultimately be acquired by the
settler's co-operative society. Here the object was to organise a
regular supply of the best quality of fruit, such supplies being
difficult to obtain in other parts of the country.
Transport undertakings, too, may be directly interested in a
settlement scheme. Reference may be made to a settlement
company, part of whose capital was provided by shipping companies. When maritime transport companies participate in a

— 56 —

settlement scheme, they are sure of earning substantial profits,
almost immediately, from transporting settlers. If the capital
they provide amounts to no more than the equivalent of any
additional net income they may earn by transporting settlers
under the scheme, not only will they avoid all risk, but they will
continue to participate in a settlement scheme which, if well
conceived, will probably bring them still further profits.
Railway companies may also be interested in a settlement
scheme, not so much because of what they may earn by transporting a number of migrants to the settlement, as because of the
regular freights the settlers' produce will provide.
Finally, by making arrangements, in a professional capacity,
for the financial operations involved in setting up and working
anew settlement, banks stand to gain directly from such a
scheme.
If the capital supplied by the groups directly interested in
carrying out the scheme is insufficient, the balance will have to be
obtained from private persons to whom the undertaking will
appeal only as an investment. The moral and material support
that the settlement organisation obtains from the public authorities may in some cases suffice for the purpose of finding such
capital. In other cases, before capital can be attracted into an
undertaking where freedom of speculation is restricted by social
considerations, the State will have to give a formal guarantee.
Normally, the State or public financial institutions will, like
any group of persons interested in having the scheme carried out,
contribute capital by taking up shares or bonds. The same
applies to capital derived from other private sources. Thus, if
the State is to give a guarantee, that guarantee will relate to the
shares or bonds issued by the settlement organisation. Incidentally, one of the advantages of the State guarantee will be to
limit the demands of persons subscribing capital, and thus to
reduce the cost of the scheme and ultimately the burden to be
borne by the settlers.
If funds have to be obtained mainly from private sources,
a further problem arises. The capital will have to be formed in
such a way as to ensure that the managers of the organisation
will be in no danger of forgetting its social aims under the influence
of a majority representing private capital. This may be avoided
in various ways. If private capital is raised by the issue of
bonds, the problem is simple, since the holders of bonds have no

— 57 —
right to interfere in management. If, however, the capital is to
be raised by issuing shares and the majority of the shares are
taken up by private persons, the articles of association will have
to provide that the proportion of the capital subscribed by social
institutions will, even if it amounts to less than half the total
stock, still control the general management of the concern and
ensure the pursuit of social aims.
Moreover, even if the capital were to be raised entirely from
private sources, the social aims of the undertaking might be
protected by laying down rules for operation in the articles of
association. The State, in virtue of its general supervisory rights
over joint-stock companies, will have to see that the articles of
association are respected. Besides, these articles can provide for
special supervision to meet the special needs of land settlement.
A formal guarantee from the State might be necessary before a
settlement company of this kind could be set up on the proposal
and under the supervision of the public authorities, but without
their financial participation. Such a guarantee would not,
however, be necessary if the company could lay before the public
a settlement scheme which was sure to be profitable and was the
result of technical co-operation between the emigration and the
immigration States.
It may be added that the settlement organisation requires not
only share capital but also working capital in the form of loans.
These loans could similarly be obtained with the assistance of the
emigration or the immigration country.
3. Measures respecting the Settlers'1 Capital Requirements
The settler's contribution towards the financing of the settlement amounts to more than the payment on account that he may
be required to make when purchasing his holding : it will often
include other expenditure of various kinds, such as travelling
expenses, cost of equipment, cost of maintenance until the first
harvest, working capital, etc. The amount of this contribution
usually varies inversely with the financial means of the settlement
organisation. If the organisation is poor in capital, it will have
to ask each settler to make a substantial contribution. If, on
the other hand, it is affluent, it will be able to take over a large
proportion of this expenditure by advancing money to the

— 58 —
settlers. But it is unlikely to bear the full amount of the settlers'
expenses, since experience shows that there is a tendency for
settlers not to work as hard when they get everything on credit.
The organisation might conceivably go so far as to take over
part of the cost of transport, the present level of which, as has
already been pointed out, is one of the biggest obstacles to oversea
settlement, at any rate so far as some emigration countries
are concerned. However that may be, the extent to which
the settler's contribution can be reduced on these lines will
depend on the solution of the problem discussed in the preceding
section, that is, the rasing of capital by the settlement
organisation.
For the sake of simplicity, it will be assumed here that the
contribution required of the settler has already been fixed in a
definite scheme and that the settlement organisation can grant
him no further credit. If the settler does not possess the sum
required, the emigration State may make up the difference with
an irrecoverable subsidy, but that is not the only possible solution,
nor even the first to be considered.
Sale of settler's property before departure
While would-be emigrants seldom have the cash they need in
order to leave, they may have real or movable property, the sale
of which on reasonable terms would yield the necessary amount.
But it is not always easy to sell property on satisfactory terms,
particularly when this has to be done within a given time; and in
the case of real property a fair price may be difficult to obtain
unless the purchaser is given facilities for payment. This is
where the financial institutions of the emigration country can
help by acting as an intermediary between the settler, who needs
the proceeds of the sale at once, and the purchaser, who needs
more or less time for payment. The difficulty may be overcome
by means of a mortgage loan.
Most peasants who wish to emigrate, particularly after a long
agricultural depression, not only have no cash but are more or
less in debt. I t is therefore easy to appreciate how much a revival
of migration for settlement may depend on measures to facilitate
the sale of emigrants' property under satisfactory conditions.
Moreover, in certain emigration countries where the size of family
farms is too small, such measures might be taken in conjunction
with others that would aim at reconstituting rural property by

— 59 —
giving the peasants who remain in the country facilities for buying
the land of those who emigrate.
The problem of acquiring and making use of land that emigrants
have left has already been considered in some emigration countries. It has been suggested that the solution of the problem
should be left to emigration banks set up to promote settlement
in a foreign country. Such banks, however, have found it very
difficult to carry out this task, since, as banking institutions, they
are not usually prepared to take over the administration of agricultural undertakings. Institutions for agrarian reform have also
been thought of. These institutions, being in touch with the
organisations responsible for recruiting settlers, might link up the
promotion of land settlement abroad with the measures taken to
make use of land the emigrants have left. Thus, in 1929 the
Polish Government set up, at the State Agrarian Bank, an emigration department, whose programme provided in the first
place for financing the initial phase of agricultural emigration, and
included assistance to emigrant farmers for the sale of their
property before leaving, loans enabling the emigrants to leave,
co-operation with the organisations authorised to recruit or transport emigrant farmers, and co-operation with a view to financing
the departure of the emigrants and their transport. During the
depression, the sale price of the farmers' land fell below the level
at which the cost of their emigration could have been covered,
and at the same time the resources of the institutions concerned
diminished, so that it was impossible to give effect to these plans.
A concrete example of the sale of the emigrants' property in their
own country as a means of financing their transport was to be
found in an agreement concluded between the Polish Emigration
Syndicate and the Italian shipping companies. Under this
agreement, the companies opened a credit for eighteen months
to cover the cost of ocean transport for migrants whose passage
was booked by the Emigration Syndicate. The advance was
repaid by the Syndicate out of monthly instalments received from
the buyers of the emigrants' property in Poland. A Decree issued
to remedy the consequences of the depression subsequently made
it difficult to sell agricultural property by auction, and the
agreement could no longer be applied. But this does not mean
that such measures might not at some future date help to revive
migration for settlement.

— 60 —

Transfer of the settlers' assets
A would-be emigrant who has enough capital to cover the payment required of him may be unable to carry out his plans
because he cannot transfer his assets abroad. That would be the
case, for example, if the emigration country did not hold enough
foreign currency for the purpose. In fact, at present this transfer
difficulty is in many emigration countries one of the chief obstacles
to any substantial revival of migration for settlement. Owing
to the high cost of transport, the amount that the settler must
have in order to leave 1 is so considerable that if emigration took
place on any large scale, the balance of payments and the monetary stability of the emigration country might suffer. It has been
stated 2 that in 1935 Polish emigration to Palestine involved
payments abroad, for the transfer of the emigrants' assets, amounting to 40 or 50 million zlotys. This movement of capital abroad
was one of the reasons why Poland had to introduce foreignexchange regulations. The problem will clearly have to be solved
if emigration countries so placed are to co-operate with immigration countries organising migration for settlement on the lines
described in this report.
The problem may sometimes be solved by concluding an
agreement with the immigration country. Germany, for instance,
has tried to overcome this difficulty by means of clearing agreements, the transfer of the emigrant's capital being allowed so
far as it can be offset by the sale of German industrial products to
the other country party to the agreement. Arrangements of this
kind were made in order that Jewish emigrants might settle in
Palestine and take some capital with them. Under a similar
agreement concluded with Brazil, German emigrants wishing to
settle in that country were supplied with the necessary funds in
foreign currency. But agreements cannot be concluded on these
lines unless the commercial and financial relations between the
emigration and the immigration country are such that compensation can immediately be arranged.
1
Sufficient consideration may not always have been given to the volume
of capital t h a t leaves a country with the emigrants. Assuming, for instance,
that each settler takes 2,500 francs with him, the departure of 400 settlers
involves payments abroad amounting to a million gold francs merely t o
transfer the assets of individual settlers.
2
Mr. Adam Rose, speaking in the Second Committee at the Seventeenth
Ordinary Session of the Assembly of the League of Nations (LEAGUE o r
NATIONS : Official Journal, Special supplement, No. 157, p . 46).

— 61 —

No doubt the history of migration movements shows that
transfers of population from one country to another are usually
attended by a general increase in commercial and financial
dealings, since the savings remitted and orders placed by the
emigrants during the years following their departure swell the
receipts of their home country. In order to start a migration
movement, however, the emigration country must have funds
that are immediately transferable to the immigration country, or,
in other words, must have a credit abroad commensurate with the
assets of the would-be emigrants. This credit would be repayable
out of the proceeds of increased trade with the immigration
country during the years that follow.
On what conditions should such a credit be granted? In view
of the emigration country's financial requirements, should the
credit be granted for a medium rather than for a long term?
From what financial institutions could it be obtained? In what
form should it be granted and on what security could interest
charges be reduced to a minimum? These are questions that will
need careful consideration; for the time being, it is only possible
to state the terms of the problem.
The settler's opportunities for increasing his resources
by working for wages
When the funds the settler brings to the immigration country
are insufficient to cover his expenditure during the initial period
of settlement, measures may be taken in that country to supplement his resources. The Decrees regulating Federal land settlement in Brazil provide that a settler with a family may during
the first six to eight months be given work, paid at piece-rates, on
road-building, house-building, etc., for a fortnight every month.
He spends the rest of his time working on his own holding, where
the other members of his family are working the whole time.
Similar provisions are to be found in the laws and regulations of
the States of Minas Gereas and Säo Paulo, where immigrant settlers who have come straight from foreign countries may be
employed three days a week on agricultural work for the Government; the manager of the settlement may also procure work for
them on coffee plantations if they so desire.
Opportunities enabling settlers to increase their income by work
of various kinds in the settlement itself or in undertakings near-by
ought no doubt to be given careful consideration in each particular

— 62 —

case at a time when, owing to the depression, would-be emigrants
have more and more difficulty in raising the necessary funds.
In every settlement there are during the initial stage opportunities for wage earning that, if the scheme is well thought out,
could systematically be used for this purpose. It would not,
however, be wise to expect too much of wage earning as a means
of supplementing the settlers' resources. As has already been
said, general development works are seldom carried out in the
settlement area by the settlement organisation itself, but usually
under a concession by undertakings that hire labour where they
can find it. In many areas, there is a plentiful supply of local
labour, often paid at very low rates. It has been pointed out,
and not without reason, that the employment of a settler at low
rates on work that is nevertheless exhausting may cause him to
work his own land with much less spirit.
As has already been said, an immigrant could, before the
depression, work for a time for wages and so collect the minimum
amount of capital required for establishment as a settler. That
was to some extent the natural solution, but nowadays such
opportunities no longer arise except in certain areas, and even
there some organisation would be necessary to make the work
really profitable. For instance, in the State of Sao Paulo, where
there is always a shortage of labour, and where the Government
pays the passage of immigrants who are prepared to work for
two to three years as wage earners on the fazendas, it is conceivable that under a scheme to establish immigrants, some years
later, on settlements specially organised for the purpose, recourse
might be had to the same facilities. This is indeed done to a
large extent by the Japanese settlement companies, which consider
that there is some point in giving the immigrant such employment
in order that he may become familiar with agricultural operations
in the immigration countries and have time to adjust himself to
his new environment. After such initial employment, the settlement organisations could establish the immigrants on their
holdings, which would then be paid for by instalments spread over
a few years. To do this, the organisations would have to have
enough funds to carry out the " conversion " of immigrant
workers into settlers at the appointed time. Provided this
condition were fulfilled, a regular flow of immigration could be
set up by such means.

— 63 —

4. Measures respecting Loans the Settler may be granted
by Third Parties
When the settlers' resources together with such amounts as the
settlement organisation can or will advance are insufficient to
permit of settlement, he may find the balance by obtaining a loan
from a third party. Whether this can be done will depend mainly
on the methods adopted in organising the settlement. There are
settlement companies and even official settlement services that do
no more than sell holdings to settlers on an instalment basis,
leaving the settlers to obtain the funds needed for development
or as working capital either from an official institution for agricultural credit or, in the absence of such an institution, from bodies
or persons who will lend money on more or less extortionate
terms. 1
At the other end of the scale, there are settlement organisations
that keep the settlers under very strict technical or financial
supervision. The Chilean Public Land Settlement Fund provides an example of this type. The Fund grants the following
kinds of loan : for seed, fertilisers, and other supplies (repayable
in two years); for the purchase of livestock and tools (five years);
for fencing, agricultural machinery, fruit trees, the installation of
hen-coops, bee-hives and other small farming equipment, the
draining of ditches, and general improvements (ten years); for
lasting improvements, carried out under the supervision of the
Fund (fifteen years); for building a house, likewise under the
supervision of the Fund (twenty years). On the other hand, the
Fund keeps settlers under economic supervision and strictly
forbids any recourse to third parties for loans. It is moreover
almost impossible for settlers to obtain any other loans than
those granted by the Fund itself, the law providing that third
parties shall have no security for any loan granted to settlers.
1
In some countries where official settlement services hardly do more
than sell land, however, this rather rudimentary organisation is sometimes
supplemented by other official institutions. In the north-eastern areas of
Argentina, for instance, the National Bank has organised a system of agricultural credit for short or medium terms, which leaves nothing to be
desired either as regards the diversity of the credits or the facilities the settlers are afforded. There appears to be no administrative link between the
settlement services on the one hand and the agricultural credit services of
the National Bank on the other.

— 64 —

In virtue of this provision, " holdings, livestock, plantations,
crops standing or sown, and agricultural implements may not
be seized by third parties until the settler is free of all liability
towards the Fund ". Since the Fund's resources are sufficient to
provide the settler with the necessary loans, there is no recourse
even to the facilities offered by the National Agricultural Credit
Fund.
It need hardly be added that in establishing immigrants there
should be.no recourse to unduly primitive forms of settlement
organisation, concerned only with the sale of land. Settlers
require not merely technical but also some economic supervision.
Since they know nothing of their environment or of local custom,
it would be dangerous to leave them entirely free to accept loans
from third parties. But it will not always be necessary to provide
for such exclusive economic supervision as is practised by the
Chilean Fund. The strict rules enforced by this Fund may be
justified by the extent of its resources, which enable it to finance
ali the operations involved in iand settlement.
The settlement organisation may, in order to reduce its own
expenses, find it worth while authorising the settler, if not at
the outset, at any rate after he has had some experience of the
country and attained some measure of economic independence, to
apply for credit to third parties. In other words, the financing
of land settlement will be easier if agricultural credit is well
organised in the immigration country. Such organisation frequently exists and would only need to be brought within the
reach of settlers in a given area. Agricultural banks or the agricultural services of public banks that have not opened a branch
in that area may, as was recently done by the National Bank of
Argentina, arrange for representation by agents who visit the
settlements and conclude all the necessary credit agreements on
the spot.
Apart from short and medium-term loans, advanced on conditions that are well known, mortgage loans might prove a very
effective means of lightening the burden on the settlement organisation. It would appear that the financing of land settlement
schemes by means of mortgage loans has been practised so far
only by official mortgage banks in certain immigration countries.
The procedure is simple. When the settler has paid off a sufficient
proportion of his debt to justify the assumption that he will have
no difficulty in paying off the rest, the bank, in agreement with

— 65 —
the settlement organisation, grants him a mortgage loan equal in
amount to the debt outstanding. The loan is secured on the
settler's land, the title deed of which is handed over to him on
this occasion. He can thus pay off the remainder of his debt to
the organisation, which thereby reduces by several years the
term of its investments. Having thus recovered its funds, it can
use them to establish new settlers.
While in some cases official mortgage banks may have no
difficulty in placing their bonds and may be able to meet all
demands of the kind described above, it may also happen that new
issues are hard to place on the capital market of the immigration
country. If that is so, the emigration State may, under a system
of bilateral co-operation, undertake to place the bonds on its
own market, provided the issuing bank will guarantee that the
funds so raised will be used to finance a settlement scheme drawn
up by common agreement.
It is true that public mortgage institutions do not exist everywhere, but where they do not, private mortgage banks might
conceivably handle such business. On the whole, the loans
granted by private mortgage banks are for much shorter periods
than those granted by public banks. As a rule the term does not
exceed three or four years. Accordingly private banks can only
have a rather small share in financing land settlement, since the
amount of mortgage debt the settler can bear will depend on the
time he is allowed for repayment. Subject to this reservation,
however, it seems that private mortgage loans might play a
useful part as soon as the settler has refunded a substantial proportion of his debt. 1 Several European mortgage banks are
already operating in immigration countries, and it would seem
that through such channels the emigration countries might help
to finance land settlement schemes under a system of international co-operation.
Finally, the Government of the emigration country or one of the
public financial institutions in that country might grant the settler
when he leaves a personal loan that he would have to repay.
There are a few precedents. On various occasions the Netherlands Government has granted emigrants leaving for Canada a
1
That is true at any rate of localities where the land survey is well organised, where the necessary legislation has been passed, and where the courts
act quickly and efficiently enough for the mortgagee's purposes in the event
of his being obliged to foreclose.

— 66 —

loan usually amounting to 475 florins and repayable within 5 years.
The commune in which the emigrant was domiciled participates
in this loan. The persons to whom such loans may be granted
are selected by the Netherlands emigration association, " Landverhuizing ". In Switzerland a special fund of one million francs
was formed in 1936 for the grant of mortgage loans to Swiss
nationals who settle on the land in oversea countries. In Great
Britain private associations frequently grant loans of this kind.
To give one example among many, the 1820 Memorial Settlers
Association advances money to settlers for the purchase of agricultural equipment and livestock.
When settlers are established by an official settlement institution or by a private organisation that the Government concerned
trusts, personal loans to supplement the settler's capital are more
likely to be granted if the organisation undertakes to collect the
debt on conditions that are agreed beforehand.1 Security might
be provided by an agreement to the effect that the title deed will
not be handed over to the settler until he has also paid off any
loan granted him by the emigration country. Losses due to the
failure or withdrawal of settlers might be compensated by a
percentage increase in the amounts to be repaid by beneficiaries
each year, unless the settlement organisation or the institution
that has advanced the loan sees fit to bear the risk itself.
TECHNICAL PREPARATION

It will be seen that there are many ways in which emigration
and immigration countries can make sure of the two conditions
on which a revival of migration for settlement ultimately depends,
those conditions being on the one hand the minimum of security
that settlers must have, and on the other a supply of capital ready
for the fairly long investments that land settlement nowadays
involves in most areas suitable for such purposes.
However, any measures that States may take to promote
migration for settlement by international co-operation would
1
This applies mainly to loans t h a t the emigration country may have
occasion to grant settlers. The settlers might, however, also obtain personal
loans from the immigration country. For instance, under the Venezuelan
Act of 22 July 1936, the Government has power to advance immigrants the
amount of their travelling expenses from their home country to Venezuela,
provided the loan is subsequently repaid.

— 67 —

have to be prepared by technical studies carried out together, with
a view to drawing up practical schemes. It would seem that
most of these measures, and certainly the more important among
them, could only be taken as part of some definite plan. Accordingly this chapter cannot close without at least a brief reference
to the technical studies by which effective financial co-operation
would have to be prepared.
There is no need to lay stress here on the difficulties that are
inherent in the promotion of land settlement. It is not easy to
work out, even on a purely national basis, a settlement scheme
that would be adequate technically, financially, and socially.
A considerable number of administrative authorities, technical
services, and financial institutions may have to co-operate in
preparing the scheme and taking the necessary action in due
course. The task becomes even more complex when settlers are
to be brought in from some other country, more elaborate organisation being as a rule necessary in such cases, when the technical
and financial resources of that country are to be associated with
the venture, and when arrangements are to be made for joint action
by all the bodies whose co-operation is desirable or necessary in
order that the plan may be a complete success. If so many
attempts to secure co-operation between emigration and immigration countries have failed even when both parties were willing,
it is no doubt because people too often forget that under present
economic and social conditions, international co-operation in
promoting land settlement is no longer a thing that can be improvised. Such co-operation can only be the outcome of patient
technical preparation, during which every detail in the development of the plan is settled beforehand. Growing recognition of
this fact has already led to practical measures. Three agreements
were concluded in 1937 by the Argentine Republic with the
Netherlands, Switzerland and Denmark, the object being to
provide, by setting up a joint committee, for the technical
conditions whose fulfilment would alone permit of contemplating
successful international co-operation. The significance of agreements of this kind is such that the agreement concluded by
Argentina and the Netherlands may well be analysed here, the
provisions differing only in matters of detail from those contained
in the agreements concluded with Switzerland and Denmark.
Under the agreement, the Argentine Government undertakes
to keep the Netherlands Government regularly informed upon

— 68 —

the following matters : the land available for settlement; the
facilities granted by settlement organisations, banks, and other
financial institutions, whether existing or prospective; the system
of agricultural credit, co-operation, etc. ; the legal conditions of
purchase, concession and working of public or private lands
suitable for settlement and at the disposal of banks or settlement
organisations; agricultural output and methods; development
works undertaken or planned; regulations concerning the admission of immigrants; the state of the labour market; fluctuations
in cost of living and other relevant data.
The Netherlands Government, for its part, will keep the Argentine Government regularly informed of the following : the number
of persons or families engaged in agriculture who are prepared
to emigrate to Argentina as settlers, either singly or in groups;
the resources at their disposal for settlement; the legal or administrative regulations applicable in the Netherlands; transport
conditions ; and other measures that the Netherlands Government
has adopted or might adopt to facilitate emigration.
The agreement provides that a joint committee consisting of
six members, three for each country, shall be set up and shall
meet in Buenos Aires : (a) to provide for the regular exchange of
the information mentioned above; (b) to prepare definite settlement schemes and all the necessary arrangements and contracts ;
(c) whenever the two Governments have agreed on a settlement
scheme, to supervise the strict observance of the conditions laid
down and in particular of the facilities that the administrations
of both countries and the settlement or financial institutions
associated with the execution of the scheme have undertaken to
give ; (d) to make sure that the settlers comply with the personal
and legal conditions agreed upon; (e) to inspect and supervise
the transport of the emigrants with reference to health, safety,
payment of travelling expenses, etc.

CHAPTER III
SUMMARY AND CONCLUSIONS

When considered with reference not merely to two particular
countries, but, as was necessary here, to the great variety of
cases that may arise, international co-operation in matters of
land settlement raises a great many problems, the analysis
of which, however concise, has made this report somewhat
heavy.
It will therefore be useful, now that the descriptive part is
over, to get the main features of the problem in perspective,
paying no more heed than is necessary to technical details.
STATEMENT OF THE PROBLEM

The problem itself may first be briefly stated.
It may be admitted that in practice there are in a certain
number of immigration countries opportunities for land settlement which have not yet been turned to account, and that if
they were so turned, it would be to the interest of these countries
for economic, demographic or other reasons, whatever the conditions they might see fit to lay down for the immigration of
foreign settlers.
Further, it is clear that emigration countries, taken as a whole,
are well able to supply the number of men required, and that
some of them are even particularly interested in establishing
their nationals as settlers overseas.
Lastly, there can be no doubt that there is enough idle capital
in the world to finance any economically sound settlement
scheme which might be drawn up with a view to making use of
these opportunities in the interests of all concerned.
Nevertheless, whereas immigration countries are in general
able quickly to find any wage earners they need, the opportunities they afford for the immigration of independent settlers

— 70 —

are only made use of after some delay, the reason being that
migration for land settlement cannot succeed without much more
complicated technical and financial preparation than the migration of ordinary wage earners calls for. Migration for settlement
has always been slow, but, for the last fifteen years, it has been
so much slower that it may now be said to have come practically
to a stop.
The world depression is far from providing a sufficient explanation. Migration for settlement has been brought to a standstill
owing to more permanent causes. These should briefly be
recalled, since they point the way to the kind of action that
would have to be taken, nationally and internationally, to
promote a revival of such migration.
Settlers are brought from foreign countries either by official
settlement services or by commercial settlement companies, or
again, by certain kinds of private organisation that have to earn
a profit for the private capital placed at their disposal, but are
not purely commercial or speculative and have a social purpose
as well. The last group may also be held to include a few private
organisations endowed with funds by philanthropists and therefore able to engage in settlement activities without any need of
making a profit.
The scope of official settlement services or institutions is
limited. If their funds are derived from the State budget, their
activities are limited by the amount of the appropriation, and
if from the issue of bonds, by the legal amount of the issue or
by the difficulty of placing the bonds. It may be added that the
funds at the disposal of official settlement services are often
reserved for establishing nationals of the country itself. This
reduces the amount that can be used to establish immigrant
settlers.
Organisations of the third kind that are humanitarian institutions, not working for profit but deriving their money from
philanthropic sources, are few in number. Private settlement
societies with more or less social aims are also very few, though
at present they seem to be mainly responsible for such immigration of settlers as takes place.
There remain the commercial or speculative settlement organisations, which might at first sight seem likely to make up for
the deficiency of the other institutions.
This, however, is the kind of body that for various reasons

— 71 —
seems likely to play a smaller and smaller part not only in migration for land settlement, but in land settlement generally.
First, the conditions that used to make settlement schemes
profitable have more or less disappeared in the areas where the
quality of the land, its favourable location with respect to centres
of consumption or industry, and other circumstances are most
conducive to successful land settlement. The opportunities that
private settlers have of making profits have progressively been
reduced by the adjustment of the price to the economic yield of
land. Only settlers who bring a substantial amount of capital
with them—and they are very few to-day—can undertake,
without unduly jeopardising their chances of success, to pay
more for land than the current price corresponding in these areas
to the yield. Commercial schemes for the establishment of
settlers whose only asset is their capacity for work have, for
instance, become almost impracticable in the central region of
Argentina, Uruguay, and the already developed areas in Chile
and the south of Brazil. In these parts of the world, commercial
settlement companies have practically disappeared.
On the other hand, in entirely new areas, land settlement can
as a rule be promoted only after important development works
have been carried out. The individual settler is unable to
undertake such works on his own behalf. They include the
building or development of means of communication, which, in
the absence of waterways, have always involved direct or indirect
co-operation by the State.
The scope of private settlement companies is therefore confined to-day to areas other than those that are already highly
developed and those in which settlement necessarily involves
State participation.
It may be said that, even within these limits, the commercial
promotion of land settlement has become harder than it used to
be. The cost of establishing settlers has substantially risen.
Owing to severer competition and improved equipment, even
more than to the growing needs of settlers, the amount of capital
required to make a success of a settlement scheme is steadily
increasing. The investment and the time that has to be allowed
for repayment are usually beyond the means of private settlement
organisations, unless the settlers themselves can make a substantial contribution. But as has been pointed out, settlers who
fulfil this condition are becoming scarce, particularly among

— 72 —

immigrants, who also have to meet high costs of transport. It
should be added, and this is where the crux of the matter lies,
that a purely commercial settlement company seldom offers a
settler the minimum of security he must have before he can
decide to enter into an engagement with the company.
It is a fact that the risks of land settlement have increased for
the settlement organisation itself. Reference has already been
made to the amount and the duration of the necessary investment.
These make for additional risks, but that is not all. Land settlement is now often based on new kinds of produce that, unlike
the ordinary kinds, call for more thorough preliminary technical
studies and for patient experiment, the market for such produce
and the price trends being less reliable. No doubt the risks due
to this situation may be offset by making definite plans in which
the time allowed for repayment is judiciously calculated, but
private settlement organisations often have no time for such
planning and even less often the means to carry out the plans
properly. If, however, the organisation fails, the failure usually
spells ruin for the settler.
Both the settlement company and the settler are, as it were,
jointly affected by this lack of security, which is due to insufficient
or defective technical or financial preparation; but the financial
consequences are more serious for the settler because the commercial interests of the company, even when it acts in good faith,
seldom coincide with his own. The settler's essential purpose is
to become through his work the effective owner of the holding
he has been assigned. Now, in a great many particular circumstances, the settlement company, if it acts in a strictly commercial
spirit, may have occasion to sacrifice the settler's interests.
The consequent risk, which tends to make any settler fight
shy of commercial settlement companies, is all the more serious
for immigrant settlers, because they are ignorant of the language,
the environment, the methods of production, and the various
means by which the nationals of the settlement country are
often able to get out of difficulties. Further, the consequences
of failure bear more hardly on immigrants, who do not always
have the same opportunities as nationals of finding some other
mode of life and who, owing to the unemployment that still
persists in several immigration countries, and especially in
agriculture, often have no means at all of making good.
If, therefore, measures are to be taken to revive immigration

— 73 —

for settlement, these must aim on the one hand at solving the
particular financial difficulties that beset land settlement to-day,
and on the other, at giving settlers the minimum of security
without which they could not be advised to give any undertaking
to a settlement institution.
MEASURES OPEN TO THE GOVERNMENTS CONCERNED

What are these measures? Whether they be unilateral or
concerted, their expediency must clearly be left to the appreciation of each country. The purpose of this report is not to
say which of the measures should be taken in a given case, but
merely to study and point out the choice of opportunities that
Governments have. Those opportunities will now be summarised.
Information and Assistance for Independent Settlers
It will be well to draw a distinction in the case of immigrants
between independent settlement and group settlement.
The financial problem is simplest in the case of independent
settlers, who usually bring capital of their own. The capital
may not always be enough to allow of paying cash for a farm and
starting to farm, but it will at least amount to a substantial
proportion of the debts that the settler will have to contract.
The fact, however, that the immigrant is risking a fairly substantial capital sum makes the problem of security all the more
important.
In order to provide the necessary conditions of security, steps
would have to be taken to see, on the one hand, that immigrants
without the necessary qualifications do not embark on activities
in which they are sure to fail, and on the other hand, that settlers
with sufficient ability are helped to establish themselves in circumstances favourable to success. Independent immigrants can be
afforded greater security as a result of measures taken either
unilaterally by the immigration or the emigration country, or
jointly by the two together.
The immigration country may set up an official or semi-official
information and assistance service to draw the immigrant's
attention to the conditions of life he must expect, guide him in
the choice of land, not only as regards price and quality for
farming purposes, but also as regards the supplementary financial

— 74 —

liabilities that farming will involve and that must not, on pain
of failure, be disproportionate to the immigrant's capital. It
goes without saying that the assistance afforded to immigrant
settlers with a view to their establishment in a new environment
may usefully be given in many other fields.
Such assistance may also be organised by the emigration
country and supplied by its diplomatic or consular services. In
that case the system should logically be completed by an information service operating in the home country. Would-be
emigrants would thus be told what qualifications and how much
capital they need, and this would prevent ill-advised departure
in many cases.
If both the immigration and the emigration country organise
an information and assistance service, co-operation might usefully
be instituted between the two.
Such organisation would permit of making better use than in
the past of the opportunities afforded by certain private settlement companies that are quite sound and often suffer from the
suspicion attaching to commercial settlement in general owing
to the activities of self-appointed or unscrupulous promoters. It
may be added that where there are official settlement institutions
with the necessary technical and financial qualifications, able,
owing to their social aims, to afford settlers additional guarantees,
independent settlers might usefully be directed to apply to these
institutions.
Financing of Settlement Schemes
A common feature of group settlement, on the other hand, is
that the capital brought by the settler and almost immediately
spent on travelling, equipment, establishment and other items,
is small as compared with the debt which he contracts and can
only pay off gradually out of the proceeds of his work. Here
the settler's security depends mainly on the financial problems
being adequately solved.
People are much too apt to forget that there are two aspects
to the financing of settlement schemes. The financial arrangements may be excellent from the promoter's point of view
(he usually makes sure of this) and at the same time very poor
from the settler's. That will be the case whenever the amount
of the annual instalments the settler has to pay exceeds his

— 75 —
means and so makes it impossible for him to meet his liabilities.
As the settler's success is one of the essential objects of land
settlement, it would seem natural that States, when taking
measures to promote settlement, should make sure that the
financial arrangements are such as to allow of his success.
The expediency of such measures seems to be more and more
widely recognised nowadays. Both immigration and emigration
countries realise that the conditions of land settlement must be
made such as to enable the settlers to make good. This is
necessary not only for social reasons, but also because in their
opinion the settler must, under a system of planned immigration,
remain on the land as an owner and not fall back on other rural
or urban occupations that are at present overcrowded. This
growing conviction finds expression in the efforts made by immigration countries to develop their official settlement services and
in a more and more obvious reluctance to grant various privileges
or facilities to settlement undertakings that do not appear to be
sufficiently sound.
In any event, it is clear, as regards bilateral co-operation, that
immigration and emigration countries will only be able to assist
in promoting land settlement provided both have an assurance
from the settlement organisations that they will treat settlers
fairly and have the necessary technical and financial means at
their disposal, so that they will not leave their work half done,
thereby involving the settler in their own failure.
The organisations which might serve as an instrument for
bilateral co-operation may be of different kinds. In the first
place, there are the immigration countries' official settlement
services, or certain financial institutions, operating in the public
interest and incidentally responsible for promoting land settlement. Certain private undertakings, doing work of public
interest, that are not purely speculative may also serve this
purpose. Mention should also be made of various settlement
agencies, not working for profit and deriving their funds from
philanthropic sources. Finally, there are instances of private
settlement companies that, although obliged to remunerate the
private capital they use, are so organised as to ensure that
profit-seeking shall not outweigh their social aims. Companies
of this last kind can play a very important part in international
co-operation when there are no official services with the necessary
qualifications in the immigration country, or when, for some

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reason or other, it seems preferable n o t to make such services
responsible for carrying out a particular plan.
A settlement scheme may be drawn u p by an existing organisation, such as a n official settlement service, but, where no such
official institution exists, it may be necessary t o draw up t h e
scheme first a n d then set up t h e body responsible for carrying
it out. The more carefully the plans t o b e carried out have been
prepared, t h e easier will it be t o set u p this body, which may be
a private company affording the necessary guarantees. The
preparatory work m a y be done either b y the technical services
of the immigration country or, in the event of bilateral co-operation for financial purposes, jointly b y the technical services of
both countries. F u r t h e r reference will be made t o this point
at the end of t h e report.
These being t h e general conditions with which t h e financing
of settlement schemes must comply, t h e various measures by
which the countries concerned may, unilaterally or bilaterally,
facilitate land settlement can be classed in four groups as follows :
1. Measures likely t o lower t h e cost of settlement, or in other
words, t h e total amount of the capital required t o carry
out t h e scheme, whether such capital is t o be supplied b y t h e
settlement organisation or b y t h e settler, or is t o be advanced
t o either b y credit institutions;
2. Measures respecting the settlement organisation's capital
requirements ;
3. Measures respecting the settler's capital requirements;
4. Measures respecting loans the settler may be granted by
third parties and t h a t are likely t o lessen the settlement
organisation's burden.
1. Measures to reduce the cost of settlement
Such measures m a y be essential t o reduce t h e cost of settlement
to a level at which t h e venture pays its own way. They may also
aim a t encouraging land settlement. Measures of this kind have
been taken mainly b y immigration countries t h a t wish t o promote
land settlement in their territory; b u t , as has been stated, emigration countries m a y also help in various ways to reduce t h e
cost of t h e scheme.
The immigration country may : (a) reduce the expenses of t h e

— 77 —
settlement organisation b y having certain preliminary technical
studies carried out a t State expense; (b) exempt settlers from t h e
payment of consular fees or reduce such fees; (c) bear t h e cost
of transporting settlers, or share this cost with the emigration
country; (d) exempt the settlers' belongings from the p a y m e n t
of customs duties; (e) transport settlers free of charge or a t
reduced rates from the port of arrival t o the settlement ; (f) bear
p a r t of the cost of maintaining the settler and his family;
(g) supply settlers with tools and equipment; (h) carry out or
arrange for the carrying out of general development works t h a t
are too costly for the settlement organisation ; (i) provide public
land free of charge or at reduced prices, or accept p a y m e n t by
instalments so as t o reduce t h e amount of capital immediately
required by t h e settlement organisation; (j) exempt t h e organisation from the payment of certain taxes or charges on transactions in real property and also grant settlers temporary exemption from taxation.
I t may be added t h a t the immigration State will nearly always
have t o set up certain social services in t h e settlement area, and
will usually be able to afford the settlement organisation a n d t h e
settlers the assistance of official technical services.
The emigration country's share in reducing the cost of settlement may take the form of : (a) assistance by official services
in the recruitment and selection of settlers ; (b) vocational and
general training for emigrants; (c) exemption from charges
payable for administrative formalities b y persons leaving t h e
country; (d) a share in the cost of transport of settlers b y land
or sea ; (e) irrecoverable subsidies granted t o settlement organisations or direct t o settlers.
The financial institutions of t h e emigration countries have
sometimes granted loans enabling the immigration State t o carry
out or arrange for t h e carrying out of general development works
such as railway and road building, irrigation and drainage, t h a t
are too costly for the settlement organisations. I n some cases
t h e loans have been guaranteed b y the emigration country.
2. Measures respecting the settlement
capital requirements

organisation's

Measures t o raise the capital needed b y t h e settlement organisation will differ according as t h a t organisation is one of t h e
immigration country's official services or an unofficial body.

— 78 —

If it is an official service financed by budgetary appropriations,
the immigration country will supply the necessary capital by
granting or increasing such appropriations. If it derives its
funds from the issue of bonds guaranteed by the State, issues will
have to be authorised and measures taken to place the bonds.
Finally the immigration State may induce its financial institutions,
particularly public banks, to grant the settlement organisation
long, medium or short-term loans according to need.
It may happen, however, that the immigration country has not
sufficient funds t o permit its official settlement institution to carry
out a particular scheme. If the institution derives its funds from
the issue of bonds, the emigration country might conceivably,
under a system of bilateral co-operation, undertake to place the
bonds among its own financial institutions, and perhaps guarantee
the bonds. The extent to which this was done would be more
or less directly proportionate to the number of the emigration
country's nationals who would be established as settlers by the
official institution of the immigration country. Again, ihe
emigration State might conceivably ask its financial institutions
to grant the settlement institution a general loan, repayable
under agreed conditions, with or without a supplementary
guarantee from the immigration country. That solution might
be considered more particularly when the settlement institution
is not financed by the issue of bonds.
If the immigration country has no official service that might
carry out a particular settlement scheme or if, for some reason
or other, it is thought preferable not to have the scheme carried
out by an official body, the work would have to be done by a
private body, which might sometimes have to be set up for the
purpose. According as the private organisation would have to
raise capital mainly in the immigration or in the emigration
State, the one or the other would have to set up the organisation
and take the necessary measures to find the capital.
Such private bodies would, to serve the ends of international
co-operation, have to give an assurance that, subject to remunerating the capital placed at their disposal, their operations
would not be merely speculative but directed to a social purpose.
As has already been said, this guarantee could only be afforded by
the structure of the settlement organisation. The States themselves will therefore be primarily responsible for seeing that
the settlement companies they intend to support morally and

— 79 —

materially, under a scheme of international co-operation, in fact
fulfil these conditions or, if the organisations are still to be set up,
to see that the articles of association afford the necessary social
guarantees. The problem is not merely to raise private capital
but to arrange for representation on such lines as ensure that
even if the company's share capital is mainly or entirely derived
from private sources, speculation shall not interfere with the
methods of operation or the social end in view.
The problem may be solved in various ways. The State may,
by taking shares itself, supply part of the capital or have some
part taken up by public financial institutions that will see the
settlement schemes are carried out on social lines. The remainder,
and even the greater part, of the capital may be raised by the
issue of debentures which give no right to participation in
management. Ordinary shares may also be offered to the public
so far as this does not involve control of the general management
by private shareholders.
If, for some reason, the States or the public financial institutions
are not in a position to supply what might be called the controlling
capital and if the settlement company's share capital must be
derived entirely from private sources, it will still be possible to
see that the company operates on the right lines. The company's
operating methods and the rights and duties of settlers may be
specified in sufficiently detailed articles of association, whose
observance will be supervised by the State in virtue of a general
right to supervise joint-stock companies, or again under special
provisions made in the articles of association to suit the company's
activities.
Will it be possible to find private capital for an undertaking
in which freedom of speculation is at the outset limited in this
way by social considerations? The answer will probably be in
the affirmative, provided the schemes the company has to carry
out are likely to pay and have been prepared beforehand by
technical co-operation between the countries concerned. If the
guarantee afforded by such technical preparation seems insufficient, the State might consider giving a financial guarantee.
Another advantage of this would be that private capital could
be raised more cheaply, so that the cost of the settlement scheme
and therefore the burden on the settlers would be less. In any
event the State might well take measures to ensure that institutions and persons likely to benefit by the development of land

— 80 —

settlement should participate in the financial arrangements. Such
institutions include transport companies.
3. Measures respecting the settlers'' capital requirements
Co-operation by the emigration country may be of the utmost
importance with respect to the capital that the settler must have
at his disposal under the settlement scheme. This applies not
only to the subsidies, already mentioned, that the emigration
country might decide to grant settlers so as to make up for any
deficiency in the capital they are required to have, but also to
measures designed to permit of the settler's belongings being sold
on reasonable terms and more especially in time for him to leave
at the agreed date. The settler may need a considerable sum
to cover the cost of passage, which is very high nowadays, the
cost of equipment, initial expenses of establishment, the cost of
maintenance during the first few months, and any payment on
account the settlement organisation may insist on having for the
land. Few would-be settlers have that amount in cash. To
raise it, they must usually sell all their movable and real property.
Real property will always be very difficult to sell without the
assistance of a private or official credit institution in the emigration country, since a buyer who is willing to pay a fair price will
often be found only on condition that a financial institution is
prepared to grant him a mortgage loan with considerable time
for repayment.
4. Measures respecting loans the settler may
be granted by third parties
The loans the settler may be granted by third parties to reduce
the amount that would otherwise have to be advanced direct
by the settlement organisation include, in the first place, loans
granted by agricultural banks or the agricultural departments of
official banks. The object of such loans is to provide him with
working capital and to permit of his improving his land. Provision might be made beforehand for loans of this kind under a
scheme for international co-operation. Whether they can be
used for promoting land settlement will depend, however, on the
circumstances in which the schemes are carried out.
Some settlement organisations—which incidentally do not seem
to be suitable agencies for the establishment of immigrants—do
no more than sell more or less developed land on an instalment

— 81 —

basis, leaving the settler free to obtain any loans he needs from
third parties. The settler will then farm his land as he pleases
or as best he can, on condition he punctually pays his annual
instalments to the company that has sold him the land. Other
organisations, on the contrary, provide for a very full measure
of technical and financial control, almost entirely, though in
different degrees, preventing the grant of loans by third parties.
Nevertheless, even in such cases there comes a time when the
settler has become free enough economically and has acquired
sufficient farming experience to be allowed without risk to
approach credit institutions, whose assistance might appreciably
lessen the financial burden on the settlement organisation.
Mortgage loans provide a very useful means of supplementing
financial arrangements in this way. When the settler has
already paid off a substantial proportion of his debt, the remainder may conveniently be taken over by a third party on the
security of a mortgage, and this operation will enable the settlement organisation to shorten the term of its investments by
several years. Mortgage loans of this kind have so far been
granted mainly by the financial institutions of the immigration
countries. It is, however, conceivable that under a scheme for
international co-operation, the emigration countries might induce
their own credit institutions to assist in financing settlement
schemes by such means, particularly when the mortgage banks
of the immigration country have not sufficient means or when no
official system of mortgage credit has as yet been instituted there.
It is also conceivable that the emigration State might, as
Switzerland did recently, set up a special fund for granting mortgage loans to nationals who settle as farmers abroad. Finally, it
seems possible that the emigration country or one of the financial
institutions in that country might grant the settler a personal
loan, through the agency of the settlement organisation, so as
to make up for any deficiency in the amount he is expected to
contribute. The settlement organisation would then have to
collect the principal and interest and hand them over to the
creditor under conditions agreed in advance. The purposes for
which such loans could be used might likewise be agreed in
advance, for instance, buildings or improvements that would
increase the value of the land to the settlement organisation,
or again, the purchase of livestock that could be seized. In that
case, the organisation might guarantee repayment, more espe6

— 82 —

cially since the risk, which in such circumstances would be
slight, could be spread over all the settlers receiving such
loans.
INTERNATIONAL COLLABORATION

When analysing the financial obstacles to a substantial
revival of migration for settlement and the means by which those
obstacles might be overcome, this report has mainly laid stress
on the unilateral and bilateral measures that the States directly
concerned might take to that end. Before international collaboration is contemplated on a larger scale, the emigration and
immigration countries would have to consider all the means of
action at their disposal. In some cases the problems of financing
land settlement may be solved simply by co-ordinating the efforts
of those countries. It may also be, however, that for want of
sufficient funds, co-ordinated action will only lessen the difficulties without disposing of them entirely.
Among the various measures that have been considered in
Chapter II, some could, by their very nature, be taken solely at
the discretion of the countries directly concerned. This applies
to measures designed to reduce the cost of land settlement.
Measures respecting the capital requirements of the settlement
organisation, the settler's contribution, and the loans granted to
settlers by third parties would in a great many cases provide
opportunities for co-operation on a larger scale, with recourse to
foreign capital. Various references have been made to such
measures in the course of this report. The part that international
collaboration might play in reviving emigration for land settlement in some countries is so great that the cases where it
would be necessary and the methods by which it might be instituted may well be summarised here.
The Problem of Financing Transfers
Some emigration countries are at present almost entirely
unable to take part in the promotion of emigration for settlement
on a large scale, and still more unable to do anything towards
financing such emigration, the reason being that they have not
sufficient foreign currency at their disposal and are therefore
faced with transfer difficulties. In such countries it is not suffi-

— 83 —

cient t h a t would-be emigrants should have t h e necessary funds
or t h a t some national institution should help to raise t h e necessary funds by selling their property on satisfactory terms. The
countries in question must also have enough foreign currency t o
place at the disposal of emigrants for transfer purposes without
fear of undue harm t o various branches of the economic
system.
When in a case of this kind, financial and commercial relations
between the emigration and the immigration country are n o t
such as to permit of transferring settlers' capital under clearing
agreements t h a t are based on a system of compensation, t h e
transfer on which the emigration of settlers depends can only be
organised with t h e help of foreign capital. Such help, which
would be granted on terms to be arranged with reference t o t h e
special circumstances of each case, would take the form of a loan,
which the emigration country would be in a position t o repay in
consequence of t h e savings remitted by settlers and of the orders
placed with it during the next few years as a result of their
emigration.
Financing of Land Settlement with Capital from
other than those directly concerned

Countries

The other case in which capital from another country may be
necessary for carrying out a settlement scheme arises when t h e
combined resources of the emigration and immigration countries
directly concerned are insufficient. Here the problem is not t o
finance the transfer of capital from an emigration t o an immigration country, b u t t o make up for any deficiency in the funds t h a t
these countries can place at t h e disposal of t h e settlement organisation. This will no doubt have t o be done frequently. Countries t h a t are not as yet highly developed and t h a t can therefore
provide the greatest number of immigrants with opportunities
for land settlement are, for t h e same reason, precisely those in
which capital is not available in large quantities. I n view of t h e
comparatively poor conditions of living and work t h a t t h e y can
offer settlers, such countries do not seem able to count on immigration from countries with a very high standard of living. The
immigrants are more likely t o come from countries where conditions of living are approximately the same, but many of these
emigration countries are likewise ill supplied with capital, and

— 84 —

for that very reason they are able to supply large numbers
workers.
However considerable the latent wealth of one country may be,
and however great the number of surplus workers who are eager
for jobs may be in the other, the capital, or part of the capital,
needed to bring about a working relationship between the two
may be lacking, and it will often be impossible to carry out a
settlement scheme unless the deficiency is made up with capital
from some other country. As in the case of bilateral co-operation,
capital will be very much easier to raise when the two countries
concerned begin by carefully preparing settlement schemes that
will pay. It would likewise be desirable to have the schemes
carried out by bodies that are sure to give satisfaction both to
the immigration and to the emigration country and that will make
reasonable allowance, whatever the source of their capital, for
the settlers' interests and the social aims of settlement.
Capital from countries other than those directly concerned can,
moreover, be used for settlement promotion either as auxiliary
capital or as the settlement organisation's own capital.
If the first course is adopted, the capital in question will have
no control over management and the operations of the settlement
organisation will not be affected. That would be the position
if the countries concerned induced the financial institutions of
another country to grant mortgage loans enabling settlers who
were already established on their land to pay off immediately
their debt to the settlement organisation. The significance of
such an arrangement has already been pointed out. Reference
has also been made to the importance of the settlers' own contribution towards the financing of settlement schemes, and to the
part that might be played in this respect by mortgage loans. If
the emigration country has not enough capital to grant such
mortgage loans, it is conceivable that the financial institutions
of some other country might provide them either directly or
through a specialised financial institution in the emigration
country. This would be an important step towards solving the
problem of financing land settlement between two. countries
that are ill supplied with capital.
However, the settlement organisation may need more or less
considerable direct loans to meet the cost of developing the
settlement and establishing settlers. Such direct loans are all
the more necessary when would-be emigrants in countries that

— 85 —

are short of capital are themselves in need of credit. Owing to
the emigrants' lack of resources, the settlement organisation will
have to take an additional strain and will sometimes even have
provisionally to bear part of the transport costs. There are in
countries other than those directly concerned, interests, and more
especially shipping companies, that stand to benefit directly by
a revival in migration for settlement, and it does not seem
out of the question that the loans needed could be obtained
in those quarters. But unless the settlement organisation is
already well known to be solvent, an official guarantee may be
necessary.
Such a guarantee may also be necessary if the settlement
organisation's own capital is to be raised by placing bonds,
shares or debentures among the financial institutions of some
other country than those directly concerned, and particularly if
the capital so raised is to respect the social tasks that the organisation cannot shirk. Whether the emigration or the immigration
State, or both, are ready to guarantee capital raised in another
country will mainly depend on such assurance as they themselves
have that the settlement schemes to be financed have been
properly drawn up.
Now settlement schemes that are economically, financially,
and socially sound cannot be drawn up on the spur of the moment.
They call for detailed preparation, and patient negotiation with
a view to co-ordinating in a general plan the innumerable factors
involved. Study, consultation, and review calling for further
study and consultation will be necessary, with the assistance of
technical services, administrative authorities, various financial
institutions, and private interests both in the immigration and
in the emigration country. Such co-ordination takes time and
can, as experience shows, hardly be effected in the course of more
or less hasty missions of enquiry, even though everything may
be done by all concerned to facilitate such missions. Investigations of this kind have been initiated during the last few years
both by emigration and by immigration countries. The number
of the investigations shows that both sets of countries attach
considerable importance to a revival of migration for settlement.
It must be admitted, however, that although these quite occasional missions have not been useless, they have as a rule only
led to a better appreciation of the difficulties involved in organising migration for settlement. There has been no time to ascer-

— 86 —

tain the methods, formulae, or means that would permit of
overcoming the difficulties.
That is no doubt why the Argentine Republic has recently
concluded international agreements with the Netherlands, Switzerland and Denmark, setting up technical joint committees to
investigate opportunities for land settlement, draw up definite
plans, and see that the plans are duly carried out after approval
by the two Governments concerned.
The significance of the Argentine solution is not confined to
the more or less important benefits that the agreements will
confer more especially on the contracting States. That solution
seems also to be a step towards international co-operation on a
larger scale. The reason why definite schemes for the establishment of settlers are often so difficult to draw up and even to
suggest, seems in the first place to be that the countries concerned
usually have very inadequate information about the measures
taken by and means at the disposal of the countries with which
co-operation might be contemplated for this purpose, frequently countries have not considered their own opportunities
closely enough. When bilateral action is to be organised, a
given immigration country may find that the means at its disposal and the opportunities it can afford do not suit immigrants
from some other country to which preference has been given as
a matter of tradition, but rather immigrants from some other
country that so far only ranked second or third in order of technical preference. On the other hand, a given emigration country
that has, as a matter of tradition, had a preference for certain
immigration countries may find that the emigrants it can
supply are no longer wanted in those countries; or again, that its
nationals may more easily be established as settlers in some
other countries.
This necessary investigation of the opportunities open to
emigration and immigration countries will take time, but will be
much easier if each country interested in the development of
migration for settlement will undertake to consider, with at least
one other country, the conditions under which technical and
financial co-operation with a view to the establishment of settlers
might be instituted. The enquiry might be carried out by a
joint technical committee, which would have to be given enough
time and the necessary means. However little information
individual countries may have about the measures taken by and

— 87 —

means at the disposal of the various countries with which international co-operation might be contemplated, each country will
find at least one other country with which it could study the
technical aspects of the problem. The work done by the first
joint committee in bringing out significant factors, and taking
stock, as it were, would clear the ground for international cooperation on a wider scale. On such co-operation the future of
migration for settlement seems to be highly dependent.

II

TECHNICAL CONFERENCE
OF EXPERTS

A.—GENERAL D I S C U S S I O N

Speech by Mr. Ruiz-GuiSazú (Argentine Republic)
Mr. Chairman, two years ago the Conference held in Santiago de
Chile approved a proposal put forward by Argentina concerning the
need for carrying out special studies on European immigration in
America. Since then, the International Labour Office has not been
idle and now submits to us, in an admirable report, a study of the
various aspects of this important question, dealing with the general
lines as well as particular details in an objective and comprehensive
manner. I t would be superfluous to attempt a detailed analysis of
the report before us.
The representatives of the various countries attending this Conferrence are aware that this work deserves high praise and that the
authors are to be cordially congratulated for their clearsightedness.
The report is systematic; the facts and the ideas are fully explained
and the realities of the problem are clearly brought out. Finally,
the economic and social considerations set forth and the suggestions
made for action on the part of the Governments, serve to indicate in
no uncertain fashion the task before this Conference, which is the study
of the question of international technical and financial co-operation
with regard to migration for settlement.
Our task is thus perfectly clear. I t is not, as might be thought,
to draw up definite settlement plans but rather to seek possibilities
of technical and financial co-operation for the development of fresh
streams of migration with a view to settlement. I t will, however, be
necessary to call attention to the special conditions and circumstances
prevailing in each country. The investigations and technical methods
must indeed be directed in the first place towards determining the
factors on which positive action can be based and in the light of which
the possible methods of co-operation might subsequently be discerned.
I t is important to remember these points, as the interests of the
emigration countries and those of the immigration countries do not
always coincide. The migration policy of every country is defined in
the main by its potentialities, although Argentine statesmen have
always and rightly held that in new countries the size of the population is the most reliable sign of their progress.
Our Republic has had the benefit of long experience in this matter.
In the 126 years of our independent national existence, we have never
lost sight of the requirements of a vast territory which for many
decades has lacked man-power and capital, and since 1853 when our
national Constitution was promulgated we have neither hindered nor
restricted, nor imposed heavy charges for, the admission of foreigners

— 92 —coming to our country for the purpose of—to quote from the Constitution—working on the land, developing the industries or introducing
and teaching the sciences and arts. And what is more, the Federal
Government is required by the Constitution to encourage European
immigration.
Allow me, however, to leave the distant past in order to deal with
the present aspects of the problem. The social economy of a country
does not always undergo regular and continuous development. An
experimental science, it requires study and reflection. Let us therefore discuss present-day problems and by limiting our investigations
to recent times endeavour to find in the facts of that period a real
foundation for international co-operation.
Now, there is no division of opinion in my country as to the possibility of an active policy of immigration for settlement, in view of its
enormous potentialities. It will be readily understood that the
peoples of Europe should turn their eyes towards new vistas and new
lands with a flexible system of liberal and democratic legislation such
as that in force in the Argentine Republic. Living in Argentina
means for them a complete change of climate and merging in a nation
new to them. But let us now consider a few crucial factors. For
some considerable time attention has been called, for example, to a
comparison between the annual value of exports and the annual number
of immigrants, a comparison showing that the factors which favour
or hinder commercial exchanges likewise favour or hinder immigration. This fact has been put forward as a sort of economic law closely
underlying the evolution of the world economic situation. Apart
from the analogy to which I have just referred, it must also be admitted
that we still do not possess the strictly technical data required to
measure the capacity of absorption and assimilation of the Republic
with respect to immigration, for at all times this capacity has depended
on the agricultural development, the increase in the area under cultivation and on the nature of the harvest.
I t is thus seen t h a t the country's power of absorption has always
been conditioned by factors connected with its agrarian policy.
Moreover, there are a number of other factors which must be taken
into account. Take, for example, the natural growth of the population which since the Great War, that is to say in the last twenty years,
represents 80 per cent, of its total growth. The number of persons
who reach the working age every year is indeed considerable. Experts
have calculated that every five years 200,000 men are automatically
added to the working population of the country and I should hardly
like to state definitely that we are at present in need of workers, and in
any case I should not like to mention a precise figure. We in Argentina
certainly cannot afford to ignore the fact that, despite decreasing
migration returns, unemployment has also been felt in our country.
Between 1910 and 1918, for example, the country was unable to
absorb all its immigrants on account of the lack of a corresponding
development in production.
In referring to these facts I desire to forestall a question which thè
emigration countries will naturally be tempted to ask and to make it
clear that it is not possible to give accurate figures of immigration
requirements. Moreover, such figures would have no practical value,
for in Argentina experience has taught us that only skilled workers
and primarily agriculturists are required. Thus, when all is said and

— 93 —
done the volume of such immigration depends on the land question;
our standpoint will always be the same, namely that the question of
immigration is a question of settlement. A large mass of immigrants
for work in the towns at low wages as journeymen is hardly desirable
from our point of view. Moreover, it is common knowledge that a
rise in real wages in the emigration countries is an obstacle to emigration and so far as this factor is concerned I am unable to say
anything in respect of my country in view of the reduction of hours
of work in many European countries.
Allow me therefore to emphasise one point before this meeting of
experts : our migration policy since the first measures introduced
about a century ago under the system of long leases has been and will
continue to be based on agricultural organisation intended to facilitate
the settlement of the immigrant on the land. The prospect of owning
land has always been a great incentive everywhere. Therefore, our
programme is clear and definite, namely to enable the immigrant
to set up as a farmer by giving him arable land marked out and
measured, with means of communication and transport facilities, and
by installing him in the vicinity of centres of social life. The class
of immigrant which suits us best undoubtedly consists of small working
proprietors or permanent settlers.
Our agrarian problems are however not yet solved in spite of a
certain number of rather advanced experiments. We are still awaiting
the promulgation of a basic Act on land settlement which at the present
time is under consideration in Parliament, albeit a number of successful
measures bear witness to a definite attempt by the administrative
authorities to divide up the land into small holdings for workers or
more exactly for families who desire to work on it and earn an honest
living. Furthermore, we are developing facilities for agricultural
credit and we now allow the immigrant to opt for Argentine nationality after two years' residence in the country. In short, we are
almost ready to receive and arrange for the establishment of a stream
of settlers.
I do not propose to discuss the migration question from all its various
angles. I have confined myself to stressing a number of points
essential for a better comprehension of the problem and I shall now
try to give you some idea of the financial and administrative measures
already taken in my country which should enable us to come to a
good understanding with regard to technical co-operation of an international character. I will not go into statistics, for such particulars,
however interesting, are more appropriately dealt with in the course
of the discussion on special points.
You all know the geographical features of Argentina. I n the coastal
district where our main exports are cultivated, the area devoted to
single-crop cultivation—which is fairly well mechanised—seems to
have become stable since the last depression. Although settlement
in this district is to some extent dependent on the volume of production, settlers consisting of elements like those which in certain countries of South America are called " colonos educadores " and which in
our country we name " selected immigrants ", with technical qualifications and the necessary capital, still have a fair chance, either
because they go in for more varied cultivation—multiple crops and
production likely to be partly self-sustaining—or because they work
the land in a more systematic manner.

— 94 —
In other districts less capital is required on account of the lower
price of the land. There is wider scope for settlement in these districts
as the cultivation of new crops is in process of development.
Some of the reports submitted by the provincial authorities as the
result of an enquiry ordered by the Federal Government confirm the
possibilities of settlement in Argentina. Recently the Land Office
of the Ministry of Agriculture marked out and put up for sale in the
Territory of Misiones 1,045 agricultural holdings of 25 hectares each
at prices varying between 5 and 40 pesos the hectare. The holdings
will be allotted to settlers selected on account of their aptitude
and general qualifications, for, as stated by the Land Office, public
land must be distributed to the most suitable settlers and those likely
to remain permanently in the country and improve the districts in
which they settle.
At present 43 squads of engineers and surveyors are busy measuring
and dividing up Ü million hectares of virgin soil within the nation's
frontiers and in mapping out fifteen new urban centres, an exceptionally
vast undertaking, as all will agree.
In the southern p a r t of the country, huge stretches suitable for
cattle breeding are being dealt with in the same way.
The Ministry of Agriculture has reorganised on new lines a large
information section which is equipped to provide national and foreign
eiy'irers •villi Ih" f'^lest informp.tion r.n t.hr nossihilition of settlement
on State lands.
The importance of stressing the occupational and other skills of the
farmer will be readily understood. In the present-day world, economic problems and questions of production are more complex than
in the past and call for much greater knowledge. This is probably
true in the great majority of the countries. Technical knowledge is
an essential condition of success.
As to the financial side of settlement, three important schemes are
at present in operation, namely that organised by the Settlement
Institute of the Province of Buenos Aires, that introduced by the
Settlement Service of the National Bank (responsible for the enforcement of the Agricultural Credit Act No. 11684) which has 93,000 hectares for sale, and finally that organised by the National Mortgage
Bank. A number of provinces are at present running settlement
schemes on a smaller scale.
The Settlement Bill referred to above was submitted to Parliament
by the Central Government.
An important feature from the social point of view common to
all these schemes and plans is the special effort made to establish
settlers on the land with a view to ownership, by allowing them ample
facilities for payment. The land covered by these schemes is situated,
I would repeat, in districts which have already been opened up and
which have easy means of access to urban centres. Naturally all
these measures must apply in the first place to farmers already established in the country, as the transformation of tenant farmers into
owners is their chief social purpose. At the present time, the number
of farmers engaged in the cultivation of wheat and flax, who are landowners, barely exceeds 36 per cent.
This fact explains why the Act in force in the Province of Buenos
Aires, among others, stipulates that would-be settlers must be of
Argentine nationality, or aliens with at least five years' residence in

— 95 —
the country. But it may be noted that the National Settlement Bill
empowers the Settlement Commission, subject to Government approval, to conclude agreements with groups of alien farmer families, or
with accredited organisations undertaking the establishment of such
groups in the country. In view of the high cost of settlement in the
central zone, however, the stipulation is made that settlers must
possess enough capital to open up their holdings. The Bill also states
that only immigrants likely to be readily absorbed in the population
are to be considered.
In the first Annual Report of the Settlement Institute of the Province of Buenos Aires, attention is called to the fact that the Institute
is conducting important negotiations with a view to settlement with
an intermediary organisation. The law authorises such operations
when their object is to establish as owners groups of skilled farmers of
alien nationality already resident in the country, with the help of
capital from their native land.
During the four years in which it has been responsible for the enforcement of the Agricultural Credit Act, the National Bank has shown
complete comprehension of our settlement policy. In granting loans,
preference has been given to farmers who have been working for a long
time in the country and to young settlers, the sons of old landowners
or farmers, whom it is equally desirable to transform into landowners.
I have described the general outlines of the settlement question in
my country, for it is indispensable that the plans and schemes adopted
in the immigration and emigration countries should be based on a
reciprocal knowledge of the facts. By this method subsidiary organisations can establish contact and migration can be organised and
guided in a more systematic manner.
While on this subject, I should like once again to refer—while
congratulating the Office for having stressed its significance—to the
procedure established by the agreements recently signed with the
Netherlands, Denmark and Switzerland, which bear witness to administrative arrangements calculated to facilitate extremely close cooperation. These agreements provide for the appointment of mixed
technical committees responsible for the study of these problems in a
spirit of collaboration, the preparation of concrete proposals and the
supervision of the rigid application of these proposals after their
approval by the Governments concerned.
This contribution by my country, based on an essentially simple
method, has been regarded as a very useful step towards the solution
of the technical side of the problem.
In conclusion I should like once again to express the pleasure felt
by the Argentine Government in taking part in this Conference. My
Government approaches the Conference in a spirit of sincere and
practical co-operation and it is extremely pleased to be able to take
cognisance of the official opinions expressed by other members of the
Conference whose suggestions and declarations will facilitate the
co-ordination of the efforts made in the various countries and bring
to light definite and useful methods of co-operation. The Argentine
delegation will be pleased to bring the information thus collected
to the notice of its Government.

— 96 —
Speech by Mr. W. Mazurkiewicz (Poland)
I t gives me the greatest satisfaction to point out that the Conference
of Experts, the meeting of which is due to the efforts of the International Labour Office, is the first step likely to have practical results
in the furtherance of international co-operation in the field of migration
for settlement. The interest shown by the States of Latin America
in this question and the results of the Santiago Conference have done
much to pave the way for the further discussion of the matter by the
international bodies.
If I may, I should like to remind the Conference that in 1936 the
Seventeenth Assembly of the League of Nations adopted a resolution
expressing the desire that the Migration Committee of the International
Labour Office should frame practical suggestions concerning the
important question of migration which would be capable of being
immediately put into effect.
The present Conference, convened as a result of the discussions of
the Migration Committee in November 1936, is called upon, although
somewhat late in the day, to prepare practical suggestions which will
enable effect to be given to the resolution of the League of Nations to
willen JL nave just rctcrrcG.
The delegates and experts of Poland have always taken a most
active part in these discussions. Whether during the sittings of the
committees of the League of Nations, or at the International Labour
Conference, or in the Committee on Raw Materials, the representatives
of Poland have always emphasised the necessity of dealing simultaneously with the questions of commercial exchanges and of the employment of capital and labour, for promoting recovery and improving the
world economic situation. These opinions have always been favourably
received in the immigration countries.
I t was the representative of an important immigration country,
namely, the Minister of Foreign Affairs of the Argentine Republic,
who, as President of the Assembly of the League of Nations in 1936,
said :
" The problem of migration has already come up several times in an
urgent form before your various research organisations. If we desire to
create a new international organisation which will restore equilibrium
and ensure the stability we have lost, we may be sure that we cannot
obtain it without a new economic organisation in which the demographic factor plays an essential part.
" We are living in times of a strange paradox—on the one hand, the
pressure of the population, and, on the other, the fertile soil and the
propitious environment which awaits them. I t would be sufficient to
remember that the soil and the man who tills it are the central factors
of economic evolution."
The problem being thus defined, the essential aim of our Conference
becomes clear. I t is to make proposals which, while taking into
account the tendency towards the re-establishment of economic
equilibrium in an unsettled world, will have the following two aims :
1. The development of the land in certain countries by settlement,
which is an economic activity of considerable importance, aiming at
the acquisition of new and vast territories for the benefit of world

— 97 —
economy, and subsequently at the promotion of possibilities of work
not only in the purely agricultural sphere, but also in all other spheres
including industry, communications, general development and even
the tourist trade. By this is meant the opening up of new fields of
economic activity in the widest sense of the term.
2. A better economic utilisation of man and his labour by transferring him from unproductive activities to activities assuring him a
full return for his labour.
It is obvious that this task can be achieved in part by the means at
the disposal of the various countries, as, for example, by the development of the land through internal settlement, or by more productive
utilisation of human labour by means of the industrialisation of the
country which will absorb unemployed elements.
At the same time, however, a solution of these problems is to be
found in international migration movements.
As in past centuries, there are still a number of over-populated
countries which are unable to make use of their surplus population
in industry and which are forced to settle their economic difficulties
by emigration. Other countries, inversely, require labour from abroad
because they are not yet in a position to develop their vast territories
with their available national labour. This state of affairs creates
demographic and economic disparities which, before the war, were
automatically eliminated by international migration.
Between 1825 and 1925, 60 million persons left Europe for America
where they carried through the huge task of colonising vast territories
and where, as a result of the investment of international capital, these
territories were transformed into centres of culture and civilisation.
Before the war, the number of emigrants leaving Poland each year
was 250,000, in addition to seasonal emigration, and their goal was the
United States, Brazil, Argentina or Canada.
Now, during the years following the war, the depression and restrictions introduced by the immigration States on the one hand and the
impoverishment of the emigration countries on the other have resulted
in a very great fall in emigration. In 1929, the number of persons
leaving Poland for oversea countries was still as high as 65,000, but
by 1936 the figure had fallen to 24,000. Moreover, as the volume of
returning emigrants rose considerably, the actual balance of emigration was reduced to nothing and sometimes even showed a deficit.
In this way the economic balance was upset and great disparities
arose in the distribution of the population of the globe, which, in turn,
had a most disastrous effect on the world economic situation as a
whole. Thus the development of thinly populated territories on the
one hand and on the other the utilisation of man's labour by the
creation of new fields of economic activities both came to a standstill.
A way out of this situation must be sought in co-operation between
emigration and immigration countries, which could subsequently be
developed on the broadest of international lines.
No doubt the bases of such co-operation exist. We have had
indubitable proof of this in the various statements made by the representatives of several Latin-American countries during the Sessions of
the International Labour Conference, as well as in the remarkable
speech made by Mr. Ruiz-Guiñazú. The fundamental principle on
which common action of this sort must be based is obviously full
respect of the sovereign rights of emigration and immigration
7

— 98 —
countries to regulate migration according to their respective requirements. Both these groups of States agree at present that the
former state of disorder must give way to organisation based on a
definite plan.
So far as the emigration countries are concerned, as, for example,
my own country, there can be no question, despite the need for emigration which is felt at the present time, of allowing masses of emigrants
to leave the country without any plan, as was the case before the war.
Emigration is looked upon more as a necessary evil, and each
country considers that its primary duty is to secure a livelihood for its
citizens on its own territory. If, as a consequence of difficult economic
conditions, a State decides to allow its nationals to leave their native
land, it does so in the conviction that their lot will be improved and
that they will be in a position in their country of adoption to take up
new lines of profitable employment.
It follows that any section of the population desiring to emigrate
becomes an object of State concern and that it should emigrate only
when such emigration is considered to be in accordance with its own
interests. Although important, the arguments in favour of reducing
over-population are not decisive, and there can be no question of
sending the people oft anywhere, or anyhow, and regardless of the
conditions concerned. There have been recent examples of States
which have inlioúuced very strict emigration restrictions.
In the immigration countries where, by way of reaction, a period of
restriction and limitation has followed a period of great latitude in
respect of the admission of immigrants, the idea that immigration
should be based on a plan implying co-operation between emigration
and immigration countries is increasingly gaining ground.
The agreements recently concluded between Argentina and the
Netherlands, Denmark and Switzerland, are an illustration of this
new policy of planned migration.
Co-operation between emigration and immigration countries, based
on the need for planned action, is one way of attaining the aims already
described, and it is also the purpose of the present Conference. On
this point, there is also agreement at the present time between the
emigration and immigration countries. In the emigration countries
—and in Poland in particular—oversea emigration is above all emigration for settlement. The immigration • countries, although they
have adopted a number of restrictive measures, have always treated
immigration for settlement, which as a rule they regard with
favour, rather differently.
The interesting report prepared by the International Labour Office
is therefore right in suggesting that the moment seems propitious for
organising emigration for settlement on a more adequate scale. If
there is a suitable basis for co-operation between emigration and immigration countries with regard to emigration for settlement, the first
thing to be done is to consider in common how to give a fresh start
to emigration and to ascertain the reasons for the present state of
inactivity.
As Poland has already pointed out, and as the Office report indicates
very clearly, the main cause of the decline in emigration for settlement
lies in the difficulty experienced in financing settlement plans. Thus,
the chief practical task before the Conference consists in dealing with
the financial aspects of settlement, and this I now propose to do.

— 99 —
To begin with, this question must be studied from two angles :
(1) in respect of emigrants possessing sufficient capital; (2) in respect
of those without such capital.
The first thing, therefore, is to ascertain the approximate cost of
settlement in the case of a typical emigrant family, generally composed
of four persons.
On the strength of examples drawn from the emigration of Polish
settlers to South America, it may be said that the average cost of
settlement for a family is approximately 5,000-6,000 zloty, or 4,2005,000 Swiss francs, of which about half goes to cover the cost of the
journey. If the emigrant possesses this amount, the main question
is one of transfer. At the present time, about 3,000 families of
settlers leave Poland every year. I t has, however, been calculated
that, to meet normal requirements, about 20,000 families should leave
Poland every year for various countries in the different continents.
Supposing, for purposes of argument, that 20,000 families were to
emigrate annually and that each of them possessed 5,000 zloty, the
total sum involved would be 100 million zloty, or about 80 million Swiss
francs. Supposing further that of this amount 30 million zloty represented the cost of transport on Polish vessels, and, therefore, remained
in the country, it would still be true that 70 million zloty would have
to be transferred abroad, a fact which would create serious difficulties
in a country with little capital. A satisfactory solution of this question
seems to be indispensable. And even if it could be arranged for
emigrant settlers to leave the country with considerably less than the
requisite 5,000 zloty, it would still be necessary to reckon with capital
transfers amounting to about 40 million zloty a year.
It is, therefore, absolutely essential that a foreign financial establishment should undertake to provide some similar institution in the
emigration country with the credit necessary to cover such transfers.
This matter becomes still more important when it is remembered that
emigrant settlers do not enrich their country with their savings as
happens in the case of industrial emigration. Either the settler
invests all his savings in land, or he uses them to meet his engagements,
which are usually a burden on him. In most cases the transfer abroad
of the amounts in question cannot be offset by exporting goods to the
immigration countries, as the trade balance of the agricultural emigration countries with the South American States generally shows a
deficit. Poland, for example, imports raw materials from those
countries, but as they themselves are agricultural countries, Poland
cannot sell them the produce of its soil, which forms its main exports.
Moreover, the South American countries, being debtor States, endeavour by currency restrictions to balance their trade budgets and
even to show a credit balance.
In addition to the problem created by the transfer of capital, another
matter requiring attention is the question of the final settlement of the
sale of property by the emigrant before his departure.
The settler who leaves his country does not generally possess ready
money, but land, which cannot always be readily converted into cash
at short notice. The person to whom he sells his land in order to
raise the money for his journey has not always the requisite amount
of ready money, in which case he pays a part of the price of the land
and guarantees the remainder by means of a mortgage. To meet
such contingencies it is essential that credit facilities should be avail-

— 100 —
able in the emigration country to enable the settler to realise the whole
of his capital. Such facilities should be granted by a national banking
establishment, having access, if necessary, to international credit.
Nevertheless, in discussing the fundamental question of the cost of
settlement, we cannot admit as a basis that every emigrant must
possess 5,000 zloty or 4,200 Swiss francs. Although, in some cases,
the emigrant may and does possess such an amount, and although the
Polish Government, while not really desiring the departure of such
persons, adopts a benevolent attitude towards them and places no
difficulties in their path, this is not the essence of the problem of
emigration for settlement. Anybody who has the necessary 5,000 zloty
is able, as a rule, t o find a living in Poland. His departure, not being
an economic necessity, does not correspond, from an international
economic standpoint, with the essential policy of emigration for
settlement, which is to ensure that better use be made of labour and
human energy by transferring the emigrant to more favourable surroundings and by the creation of a more productive sphere of economic
activity.
For these reasons, the class of persons most suitable as settlers,
and whose departure is economically justified, is composed, at any
rate in Poland, of small farmers who are unable to live from the produce
of their land, who wish to improve their lot by settlement in oversea
valuable element. Their belongings would, however, amount to not
more than about 2,500-3,000 zloty. I t may be mentioned that in
Poland and, I believe, in most agricultural emigration countries there
are at the present time few emigrant families possessing a capital of
5,000 to 6,000 zloty.
If, therefore, we wish to organise settlement plans on a sound basis,
and to ensure their success, we must at the very outset take it for
granted that the would-be settler will not possess more than 2,500 zloty
or 2,100 Swiss francs.
Where, then, is the requisite capital to be found?
The answer to this query is that the organisation of planned emigration for settlement naturally presupposes the existence of a settlement service with a certain amount of capital, which would carry out
the technical work and provide the guarantees required in connection
with the settlement of emigrants on arable land.
According to suggestions made in the report of the International
Labour Office, an institution of this kind, if it is not an official department of an emigration or immigration country, should be a private
body of a social character similar to those which are actually under
State supervision. Moreover, if settlement schemes are to be organised
on a planned basis, they must not be confined to the purchase of land
and its distribution in small lots to settlers, but must also include the
development of the land : organisation of surveys, construction of
highways and roads, breaking up and possibly the sowing of a certain
number of hectares, facilities for the building of houses, etc. This
work of development must be carried out by the settlement institution
to which I have already referred.
The cost of establishment of a family of settlers may be divided up
into the following items :
(a) cost of transport;
(h) initial instalment on the land purchased;

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(c) cost of maintenance during initial period ;
(d) cost of equipment, etc.
The most important item is naturally the cost of transport, which
for a family of four persons, including one child, works out at 2,400
zloty, or 2,100 Swiss francs.
But, while the cost of maritime transport has increased threefold
since the war, the gross income of agricultural undertakings has fallen
by as much as one-third since the beginning of the economic depression.
In consequence, the high cost of transport is nowadays one of the
main obstacles to the organisation of migration for settlement. Here
then is a problem which calls for a solution.
There are a few emigration countries, like Japan, which provide
their emigrants with subsidies to cover transport expenses, but most
of these countries are not in a position to do this. Similarly, some
immigration countries grant subsidies or loans to emigrants for the
same purpose.
No doubt the simplest solution, one commonly used before the
war by the prominent immigration countries, would be to make the
immigration countries grant subsidies or loans to cover the cost of the
settler's journey. But, as at the present time this will not always be
possible, it is necessary to seek other means of solving the difficulty
in a more general way.
If, as has been pointed out, the total capital possessed by the
emigrant is fixed at 2,500 zloty, it is not possible for him to devote
more than 50 per cent, of that sum for his journey, as the remainder is
required to meet the cost of his installation in the immigration
country. In this case, he will need another 1,200 zloty, or 1,000 Swiss
francs, to cover his transport costs.
The best arrangement would seem to be for the settlement institution
to advance about 50 per cent, of the cost of transport, this loan being
added to the price of the holding and being repaid by the settler in
yearly instalments, together with the price of his land. In this case,
however, in order to enable the settler to pay the instalments, it would
be necessary to prolong the period, generally from 7 to 10 years, within
which he is required to pay the balance due for his land, to 12 or
15 years. Unless some such action is taken, the financial strain put
on the emigrant by the payment of his instalments may well exceed
his possibilities, and this would ruin the whole settlement plan from
the very outset.
In connection with the initial payment made on the land purchased,
it may be noted that the purchase price generally includes the cost of
the land itself and the cost of its development, but the price of land
is usually very small in undeveloped districts. Some of the immigration countries even provide land free of charge. This arrangement
would certainly be the most reasonable, but it must be remembered
that it is not always possible.
The initial payment for land which has been more or less developed
usually amounts to 25 per cent, of the price. When the emigrant, as
may be foreseen, has only a small amount of capital, the initial payment
cannot exceed 10 per cent.
As for the initial cost of maintenance after arrival, this has to be
met by the emigrant, who must keep himself until his first harvest.
For this purpose, he requires about 500 zloty, or 400 Swiss francs.
The initial expenditure incurred in taking up a holding, such as the

— 102 —
cost of equipment, etc., is borne b y the settler, b u t when it is a question
of the purchase of a n i m a l s or seed, a certain a m o u n t of direct assistance
in cash or in kind is necessary from the immigration c o u n t r y concerned.
The organisation of assistance of this kind should b e a simple m a t t e r
and m i g h t b e left t o existing institutions, such as agricultural b a n k s ,
Government agricultural departments, etc., which have t h e necessary
administrative m a c h i n e r y a t their disposal. H e r e , of course, it is
more a m a t t e r of g r a n t i n g assistance in kind. If, however, such
assistance took t h e form of credit, it m i g h t be given for a period of,
say, five years, a n d could be repaid either in kind (produce) or
b y a n n u a l i n s t a l m e n t s free of interest. W h e r e official settlement
institutions exist, all such transactions would n a t u r a l l y fall within
their competence.
In this w a y t h e m a i n b u r d e n of providing settlers with credit would
fall on t h e s e t t l e m e n t institution, which would t h u s h a v e to bear, in
addition t o t h e h e a v y cost of developing t h e land, e x t r a expenditure
to cover t h e e m i g r a n t ' s cost of transport, while it would receive a
smaller initial i n s t a l m e n t for t h e land t h a n it is now customary
to pay.
Obviously, if t h e institution in question is to be able t o carry out
its work in such conditions, it must either possess a large a m o u n t of
capital or h a v e access to wide credit facilities. As t h e first continfjciicy ¿s very" ¿"¿irCj v/c ¡XTC ±*xcotx w i m LÜC iitítitii¡£>¿L^' oí OI'^Ü.ÍÍIM.Í.ÍÍ' ^-¿'tíun
facilities for t h e s e t t l e m e n t institutions.
As t h e Office r e p o r t quite rightly observes, it is unquestionable
t h a t t h e cost of t h e general development of t h e settlers' land (road
building, surveying, etc.) could be p a r t l y t a k e n over b y t h e immigration countries, which often have large b u d g e t a r y appropriations
for public works.
When faced w i t h a large settlement scheme, t h e immigration country
could e a r m a r k a p a r t of these credits for t h e economic i m p r o v e m e n t
of the land set aside for settlement. This would considerably reduce
t h e expenditure w h i c h t h e settlement organisations are called upon
to meet. T h e g r a n t of credit t o the settlement organisations could
be organised t h r o u g h banking institutions in t h e immigration country,
or b y t h e official s e t t l e m e n t institution of t h a t country. F o r such
purposes, these institutions should be able t o m a k e use of international
credit. Or again, t h e credit required b y t h e settlement organisation
could be provided directly b y international b a n k i n g institutions.
Thus, all t h e v a r i o u s solutions proposed stress t h e importance of
international credit.
A fact t h a t we all h a v e t o face is t h a t a g r e a t n u m b e r of t h e emigration countries, as well as m a n y immigration countries, often do not
possess a d e q u a t e m e a n s of financing migration for settlement on a
large scale, a n d t h a t i t is essential t o find some connecting link between
settlers from emigration countries, the land with which t h e immigration
countries promise t h e m under certain conditions, and capital, the
sources of which will often be found outside t h e two countries
concerned.
I n t e r n a t i o n a l c r e d i t can be used for t h e following purposes :
(a) t h e transfer of capital;
(b) t h e final s e t t l e m e n t of t h e sale of t h e emigrant's p r o p e r t y in
t h e emigration c o u n t r y ;

— 103 —
(c) the provision of.credit for the settlement organisation, to be
used by it to cover part of the cost of transport of the emigrant
and his family and the cost of the general development of his
land.
While not wishing, at this juncture, to discuss in detail the creation
of a system of international credit for settlement purposes (on which
subject I reserve the right to speak at the proper time) and while
regretting that the Office report, excellent as it is, deals with this
question somewhat superficially and without making any concrete
proposals, I will now endeavour to outline the measures that might
be taken in this connection.
In order to facilitate the transfer of the emigrant's capital, a loan
could be granted to a national banking institution, which could be
paid off either in yearly instalments over a period of seven years, for
example, or by means of goods. This loan would be guaranteed by
the amount paid by the emigrant in national currency.
As regards the final settlement of the sale of the emigrant's property,
the same banking concern, when giving credit to the purchaser of the
emigrant's land, would, as is usually the case, issue bonds which would
be taken up by a foreign financial establishment and possibly by an
international credit institution. This credit would be guaranteed by
a mortgage on the property of the purchaser, who, as a rule, thus
comes into complete possession of his property and is consequently
able to provide the whole of it as guarantee. Moreover, the bonds in
question, for which the banking institution in the emigration country
is primarily responsible, are also guaranteed by the State in many
cases.
When international credit is granted in the immigration country,
one could proceed in the same manner, that is to say, through the
medium of a first-class banking institution—partly supported perhaps
by State capital—issuing, for this purpose, shares or bonds which, as
in the case of the emigration country, would be taken up by a foreign
banking establishment or possibly by an international credit institution. In like manner, credit could be granted to the official immigration body of the country in question.
The credit thus obtained would be used to supply the settlement
institution. If that body was able to offer adequate guarantees to
international credit institutions, international credit could be provided
directly by the purchase of bonds issued by the institution.
This credit would be covered on the one hand by the settler's holding
—a holding in process of development—which would then have the
benefit of the credit issued to it by the settlement institution, and, on
the other hand, by that part of the settlement concession not yet
occupied by settlers, as a supplementary guarantee. In point of
fact, the value of such land increases automatically, even without
development work, as the settlement scheme progresses.
As for the important part which international credit would play
in all these operations, I feel I must express regret at the fact that
among the members of the present Conference there are no financial
experts from the countries possessing capital, as their presence might
have facilitated the achievement of practical and more immediate
results.
Apart from the financial aspect, other questions have naturally
been mentioned in the Office report, such as technical collaboration

— 104 —
or measures likely to reduce the cost of settlement. These include the
questions of entrance visas and the free transit of settlers, the question
of the revision of the system of deposits required in some countries,
the improvement of the quota system, the payment of the settler's
travelling expenses between the port of arrival and his final destination, etc. All these matters are certainly important, and I hope
that during the present Conference practical suggestions will be
adopted in an atmosphere of general confidence. Nevertheless,
compared with the financial aspect of the problem which I have just
discussed, these matters are rather of secondary importance.
The essential task to be carried through, and one in which the
International Labour Organisation—which was set up to secure
protection for all branches of human labour—must obviously take a
most active part, is the establishment of a practical system of international co-operation aiming at the development of thinly-populated
regions and the utilisation of human labour according to methods more
in keeping with the economic requirements of the immigration countries and, may I add, of the world. This task is in every way as
important as those problems which, like that of the development of
international trade for example, are nowadays causing the deepest
concern in international circles.
It is obvious that the problem which we are now discussing from
the standpoint of Latin America is more general and affects other
parts of the world like the Near East, certain African territories, etc.
I am sure that the International Labour Office, which has taken
this important problem in hand, will continue to deal with it in a most
active manner. At present, we are in the first stage of the work.
The exchange of ideas assured by this Conference should result in the
preparation of a common plan on the basis of which, during the second
stage essential to our discussions, we will be able to meet experts
representing the brain and sinews of what is known as international
capitalist circles. Active co-operation by such circles is an essential
condition of success for all schemes likely to contribute towards a
definite improvement in inter-continental economic relations.

Speech by Mr. Pinheiro Machado (Brazil)
On behalf of the Brazilian delegation, I beg to welcome the delegates assembled here with the intention of finding ways and means of
friendly co-operation for the practical solution of migration questions.
Brazil, which is an essentially agricultural country possessing great
natural wealth in the form of vast stretches of fertile and healthy land,
eminently suitable for development, which has a most varied climate
and which is governed by very liberal laws, is ready to receive foreign
settlers capable of satisfying in numbers and, what is more important,
in quality the imperative needs of the country.
The innumerable natural resources of Brazil provide splendid
opportunities for work for a population ten times greater than that
actually established there, and offer great possibilities for farmers who
desire to settle on the land and remain there.
The healthy foreigner desiring to work in our country is always
welcome. The friendliness of the inhabitants, the mildness of the

— 105 —
climate, the incomparable richness of the soil, the inviolability of the
right to work and the security of life and property all go to make the
foreigner in Brazil feel that he has arrived in a new homeland.
The problem of immigration for settlement is therefore of great
interest to the Brazilian Government especially on account of its social,
economic and demographic aspects and its powerful influence on the
rapid development of the nation.
The present policy of Brazil with regard to planned immigration is
directed by the State and aims not only at preventing the admission
of undesirable or unsuitable persons, but also at organising and encouraging the immigration of good agricultural elements in accordance
with the economic needs of the country.
The adoption of regulations for the local establishment of foreigners
on our national territory is necessary in the interests of the nation,
as the adaptation of foreign elements and their transformation into
useful working units could not be achieved if the State, in its desire
to meet the requirements of the individual settler, allowed them to
settle and go anywhere they liked in the country.
The time has gone when the migration problem was a simple one.
Nowadays, organised and untroubled co-operation between the countries concerned should help to bring to light the obstacles and difficulties which are likely to arise and should lead to international
agreement calculated to promote mutual development and the reciprocal
interests of the contracting parties considered from the widest angle.
In Brazil the preparation of legislation governing immigration and
settlement is left to the Federal authorities, and the Council of Immigration and Settlement, which is presided over by the Minister of
Labour, has legal and advisory functions and supervises the enforcement of the legislation.
Acting in full agreement with the Council and staffed by technical
experts, the official immigration and settlement services give technical
help and assistance to foreign farmers coming to Brazil.
In choosing settlement centres, preference will be shown for healthy
districts which conform to the following conditions : proper altitude
and land suitable for multiple-crop cultivation ; situation near railways
or waterways or in the vicinity of populous districts ; adequate water
supply; topographical formation and conditions suitable for mechanical ploughing; proximity of forest land.
Each settlement must have elementary agricultural schools ; a centre
for the demonstration of local agricultural methods; animals for
breeding purposes ; plant for the working-up of agricultural produce ;
agricultural implements and machinery for use by the settlers.
On arrival, the settlers will be entitled to free food during three days,
paid work in the settlement during six months, a supply of medicines
in case of sickness, free medical attendance, supply of seed, etc.
The payment of land will he spread out over a period of 8 to 12 years,
settlers paying in advance receiving a discount of 12 per cent.
The various States of the Republic will co-operate in this work by
encouraging all sorts of work on private estates, which is an excellent
way of introducing the immigrant to our methods of cultivation and
of giving him time to get acclimatised. They will also take steps to
ensure the local organisation of settlements, the provision of free
transport, the enforcement of contracts and the protection of the
settler's rights.

— 106 —
Such, in short, are the proposals of the Brazilian delegation, which
hopes that this Conference of Experts, animated by similar sentiments,
will prove to be a real connecting link between the technical organisations of the countries here represented and that its work will lead
to the formulation of practical and equitable suggestions for international co-operation with regard to migration for settlement.

Speech by M r . J . Kitaoka (Japan)
I feel that this Conference would perhaps like me to explain the
general attitude of the Japanese delegation towards the question of
migration.
I have no need to say that the migration streams which formerly
existed were necessary and played an extremely useful part in the
development of the world in general. They are necessary, both for
the emigration and immigration countries, as long as fallow land exists
and as long as there are men desiring to go and work on it.
The problem before us is to find practical remedies for present-day
difficulties.
I must say frankly that, for the moment, we have no practical
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matter. But if certain immigration countries are ready to receive
Japanese settlers and to give them facilities of establishment, we are
quite ready to send them settlers. We do not wish to raise the question
of the admission of Japanese settlers in countries where they will not
be well received. In Japan, when sending emigrants abroad, we
choose those who will best fit in with the new life which they will have
to lead and those who wish to establish themselves definitely in the
country and have firmly decided to become good citizens of that
country. We are quite ready to give them all the necessary facilities,
the necessary training, etc. Past experience shows us that they have
always made a great contribution towards the development of the
countries where they have settled. If an immigration country is
ready to give our emigrants the necessary facilities and the protection
which they require, we will willingly put our emigrants under their
care and protection.
The aim of emigration, as we see it, is to mitigate the hardships of
those of our nationals who do not possess land, to give them an
opportunity of becoming owners in places where there is available
land and to contribute towards the economic development of the
country in which they settle. By such methods, we think that it is
possible to establish closer contact between the emigration and immigration countries and that such contact will certainly be of increasing
benefit.

Speech by Mr. C. P a r r a Perez (Venezuela)
My fellow members of the Venezuelan delegation, and in particular
Mr. Arocha, will explain the general attitude of Venezuela towards
migration for settlement and the various plans and possibilities of the
country. I t seemed to me, however, that it was my duty to make

— 107 —
a few preliminary remarks in the general discussion which will show
the spirit in which our delegation is taking part in this Conference.
I t is more or less admitted by everybody nowadays that the peace
of the world depends essentially on the distribution of its population
and on a more systematic utilisation of raw materials—two questions
which, of necessity, have much in common. Over ten years ago, the
Venezuelan delegation to the Assembly of the League of Nations
called attention in a communication to the President of the Republic
to the fact that the time was near when the world would be found to
be divided into two groups of countries, one of which, while suffering
from over-population, would be short of the raw materials required
by industry, and the other, while possessing an abundance of raw
materials, would be short of man-power and capital. Vital necessities, before which all other considerations would become of secondary
importance, would force these two parts of the world to co-operate in
an endeavour to find some basis of universal international agreement
where hitherto only partial agreement based on national action or on
bilateral and temporary treaties had existed. In view of the great
importance of immigration for certain countries, including my own, the
Venezuelan delegation persuaded its Government to forestall, at
least nationally, the events which were bound to occur and to open
the doors of our country without delay to foreign settlers in accordance
with a carefully prepared plan. " While safeguarding our own
interests and independently of others, let us do now ", said the delegates, " what we shall have to do to-morrow perhaps in less favourable
conditions. Any delay in this matter cannot, in our opinion, but be
harmful for our country, as it is clear that settlers will promote progress
which otherwise it will be impossible to achieve."
The trend of the world population question in the direction which
I have just indicated has been and is extremely rapid. This Conference is only one of many signs that the problem is now entering a
universal phase and that its settlement on universal lines must be
considered as the final attempt to escape the catastrophe which is
threatening civilisation. This, added to the fact that only intensive
settlement can enable a number of young countries to live and to
thrive, explains the interest which is rightly shown in our Conference
and the hopes that it has awakened in well-informed circles and in
public opinion in general.
I t would be vain to ignore the multiple difficulties connected with
the question of a more equitable distribution of the world population
and it is not to a group of experts like this Conference that I would
presume to point them out. At the same time, the object of this
meeting is to deal with these difficulties, to find a way of settling them
and to give the various countries new possibilities of action necessary
in their own interests.
First of all, there are difficulties of a political order connected with
the sovereignty of States, their laws and their attitude towards the
establishment of foreigners within their frontiers. I need hardly
refer in this connection to the existing controversy on the nationality
to be retained or acquired by immigrants and their descendants and
on the efforts made to impose on them certain links with their native
country. This is one of the most important aspects of the question
and one which is not easy to settle. Experience shows that the
so-called immigration countries are unable to get over their dislike of

— 108 —
seeing compact groups of emigrants establishing themselves on their
territory who show no desire to mix with the local population, sometimes even disdain to speak the national language and refuse to send
their children to. State schools.
Such an attitude, it must be admitted, is highly undesirable, the
more so as it is a dangerous delusion to endeavour to prolong by
artificial means harmful to the nation on whose territory such things
occur, the influence of a foreign State on individuals who in the second
generation and sometimes even in the first generation at the end of
a certain time and when they are left alone, find it in their interests to
become part of the local population. A man belongs to the country
where he was born and, if no obstacle is put to his education under
new surroundings, there can be no nationality problem for him, as
in any case he is bound to the country of his parents by various moral,
intellectual and even economic ties. I t is essential that some of the
emigration countries should change some of their ideas on this subject.
I even wonder if, in view of the importance taken by the question of
population and the necessity of finding a solution for it, jurists will
not be forced in the near future to consider whether, in some of its
aspects, the law of jus sanguinis, all-important in some national
laws, is not incompatible with present circumstances. I am fully
aware that in saying this I may be raising a problem which is not
it now.
The second problem which arises is ethnical in character. In theory,
from a political and social standpoint and in the field of international
co-operation, there is not a single person who would hesitate to proclaim the equality of the human races. But, according to science
and experience, there are a number of facts which militate against
cross-breeding between certain ethnical groups, and history proves
that the very fact of such groups living together is more or less likely
to undermine the stability and unity of a nation. There are races
the members of which do not mix voluntarily with the native population; there are others which, even when they do, tend to alter the
national character or even to change the whole culture of a people.
Therefore, the immigration countries have the right, I was almost
going to say the duty, of choosing their future citizens. I know that
in some cases national legislation makes discriminations which may
lead to high feelings, almost justified in some cases. But it must not
be thought that these discriminations are always the result of unreasonable prejudice.
In connection with the adaptation of certain ethnical groups to
local conditions, it is important to consider their ability to adapt
themselves to a given climate. I t has been said that as a rule the
white man, especially when he comes from Northern Europe, is
incapable of working in tropical and sub-tropical countries. Experience, especially in Australia, proves that this theory is not always
true. But from the point of view of our country, it is obvious
that a settlement scheme can succeed only if great care is taken to
choose for settlement purposes districts which on account of their
temperature—generally a matter of altitude—and the nature of the
possible crops, are most suitable for Europeans. These arguments
must be obvious to the experts attending this Conference, but they
must be repeated so as to abolish the erroneous and widespread idea

— 109 —
that some of the Latin-American countries which are arbitrarily
classified as " hot countries " are unfit for settlement.
Then thirdly, there are economic difficulties. All the facts have
been given (and we know them through the reports and other documents published by the International Labour Office) concerning the
restrictions which certain countries have imposed on immigration in
order to protect their national labour or to avoid or mitigate unemployment, in view of their very legitimate fear of not finding new
markets to meet the continued development of industry and agriculture. These restrictions, which to a certain extent go hand in hand
with those introduced by emigration countries in order to prevent an
exodus of their nationals, tend very largely to complicate the whole
problem. But it is difficult to deny that measures of this kind may
to some extent be justified. I t is impossible to hope to increase the
population of the country without increasing its economic expansion
to a corresponding extent. And here we come back to one of the main
factors of the problem, namely, the connection and close interdependence which exist between the question of population and that of
raw materials. I do not believe it possible to settle these questions
separately and this conviction of mine becomes still stronger when I
consider the deplorable results of some of the tendencies of presentday economic policy. The ignorance of technicians of renown and
consequently of most of the States, of one or two economic principles
confirmed by age-long experience, this ignorance, I repeat, is simply
stupefying to an attentive observer of present events. I t would not
be going too far to say, in the light of arguments advanced by Mr. van
Zeeland, that the economic depression which even now would seem
to be considered incurable and therefore permanent, has become so
as the result of the measures taken by the Governments to cope with
it, and not in spite of such measures, as some still appear to think.
Sooner or later we must return to freedom of trade and the restoration
of production zones which promote commercial exchanges. I t is
essential to abandon systems which, as I said at the Buenos Aires
Conference, are systems appropriate to a state of siege, in themselves
totally incapable in times of peace of assuring the prosperity of nations
and the regular continuation of international relations, which after
all constitute the normal state of humanity. Underlying this state of
affairs there are reasons and circumstances of a political nature which
seem decisive and prove once again that economic matters are not
more important than political necessities of which they are only an
aspect. But this is not a matter which we have to discuss at this
moment. Our duty is to study general principles which, in present
conditions, will be a means of guidance for States desirous of attracting
settlers to their territories. We cannot thrash out questions such as
those connected with the kind of crops which should be developed,
the markets which should be utilised, or labour questions, which by
their complexity go beyond the competence of this Conference.
And so we come to the fourth obstacle for emigration for settlement,
namely the financial difficulty, which is the main question before this
meeting. I am not absolutely convinced that, as stated in the report
prepared for the Conference, the main obstacle to emigration for settlement is of a financial nature, and I have said enough on this subject
to indicate my manner of thinking. But it is obvious that the financial
aspect of the problem must be considered if it is desired to find an

— 110 —
international solution of the whole matter. When we have found
solutions suitable from the standpoint of financial technique it will
be possible to deal hopefully and successfully with the other questions
which I have mentioned. The interest and the competence of this
Conference bear, in particular, on this aspect of the question and the
International Labour Office deserves great praise for having organised it.
Incidentally, I should like to call attention to the important debates
on migration which took place during the Tenth Session of the Permanent Conference on Higher International Studies, which was held
in Paris from 28 June to 3 July 1937. On that occasion, eminent
experts exchanged views and put forward a number of useful suggestions which I consider we should take into consideration. The
reports published by the International Institute for Intellectual
Co-operation on raw materials, colonies and population questions
are, in my opinion, documents of major importance which might
help the experts attending this Conference to formulate their views
and draw up a programme of action. It is certainly not for us to
deal with all the questions raised, but I am convinced that if we
are to do useful work even in a strictly limited sphere we cannot
afford to ignore certain factors which are at the very base of the whole
problem. Demographic pressure and high birth-rate resulting in
over-population in certain countries are, according to Professor Landry,
a TT.uoh greater CÍÍTSSC of nnnflict hctwrcr. nations than was formerly
the case. The possibilities of absorption, mentioned above, the social
and political situation which may arise within a given country as a
result of an influx of unsuitable immigrants, and the question of the
legal status of the migrant are all points, among many others, that
were discussed by the Conference on Higher International Studies.
The Inter-American Conference for the Consolidation of Peace, held
in Buenos Aires in December 1936, showed the interest which should
be attached to the debates on migration at the Permanent Conference
on Higher International Studies, by referring to them in paragraph 5
of the resolution by which the American States, with the sole exception
of the United States, decided to carry out studies on their capacity
for receiving immigrants. The same Conference went even further
and recommended the appointment of a Committee of Experts from
American countries to co-ordinate the findings of previous meetings
and the studies carried out by certain institutions with a view to the
preparation of draft standard bilateral treaties to be submitted for
consideration to the Pan-American Conference to be held subsequently
in Lima. This resolution was the outcome of drafts prepared by the
Argentine, Uruguayan and Brazilian delegations. Although the
suggestion was not adopted, the draft prepared by Brazil proposed
that it would be desirable to distinguish between the voluntary
immigrant and the settler, the latter being a recruited immigrant.
These facts cannot but provide the meeting with still another proof
of the interest which all questions connected with migration have for
the American States.
And naturally I must call attention, as a sort of compendium on
migration matters, to the three volumes published by the International Labour Office under the title of Migration Laws and Treaties.
These volumes are full of information and practical suggestions on
all branches of the vast question now before us. A series of most
comprehensive monographs on immigration and settlement in Argen-

— Ill —
tina, Brazil, Chile and Uruguay, published also by the Office, go to
complete a very necessary bibliography.
There is still another document of considerable importance which
I should like to mention, as it gives us the results of the most interesting
settlement scheme undertaken in our time, namely, the Report of the
Royal Commission on Palestine. The practical suggestions which can
be derived from this scheme are of incalculable value and may be
compared, from the standpoint of foreign settlement, to those provided
in the field of internal settlement by the admirable achievements of
the Italian Government in the Agro-Pontino. I also wish to call
attention to the work accomplished by the British authorities in the
Mandated Territory and by the Jewish organisations, with particular
reference to the organisation of the technical and financial aspects
of the establishment of agricultural settlers, which makes allowance
for the power of absorption of the country, its probable economic
development and other matters, including labour. In my opinion
it would be difficult in certain respects to do better than what is
being done at present in Palestine or to do it differently.
Under present circumstances, it is mainly towards Latin America
that one turns when it is a question of relieving congested areas in
Europe and of finding some way out of the political and economic
muddle into which that continent has fallen since the Great War.
Some attempt to organise settlement in Latin America on new lines
and in larger proportions seems to be one and perhaps the only solution, because it is useful both to the over-populated European countries
and to our countries poor as they are in labour and capital.
What form, then, should international co-operation in such matters
take, at any rate in its early stages and pending the evolution imposed
by the force of circumstances, to which I referred at the beginning of
my speech? The report prepared by the International Labour Office
describes the systems of settlement at present in operation and those
tried in the past, notes their drawbacks and advantages, clears up
this particularly complicated subject and opens favourable prospects
to our eyes. I t must be understood, of course, that the right of control
of the country concerned in such matters must be firmly established
so as to safeguard it not only against the consequences of a possible
set-back but also and mainly against complications of a financial,
legal or diplomatic character. I t goes without saying also that
technical arrangements of so complicated a nature as settlement,
affecting the life and future of a State, can only, and must, be left to
that State. Such a conception would seem by itself to exclude certain
types of undertakings which, moreover, are nowadays practically
non-existent. I t is essential nowadays to define what is meant
by a settlement organisation, by ascribing definite functions to it
and then to establish its relations with a corresponding body in
the immigration country. The nature of such an organisation is
variable. I t may depend directly and officially upon the competent
Government Department or again it may be what in Italy is termed
an ente parastatale, a simple system which has produced good results.
The report alludes to this when it mentions the underwriting of shares
by the State and the provision of a part of the capital by the organisation itself or by public utility institutions. Under present circumtances it seems that so far as official collaboration between States is
concerned it is impossible to go beyond bilateral agreements intended

-

112 ---'

to secure the co-ordination of the public migration services of the
contracting parties and to facilitate in this way the obtaining and the
utilisation of capital. For such purposes it is essential to encourage
the appointment of joint committees similar to those set up as a result
of the agreements concluded by the Argentine Government with a
number of European countries, as described by my eminent colleague
Mr. Ruiz Guiftazu. Here ogain, the Venezuelan Delegation is ready
to help the Conference to prepare texts and to find formulae likely
to be of value to the Governments. What matters is, as a result of
comprehensive study, to bring the latter face to face with new or
better remedies for a most urgent and acute problem.

Speech by Mr. J. Brablec (Czechoslovakia)
Czechoslovakia is keenly interested in technical and financial
international co-operation with regard to migration for settlement."
In 1936 the number of emigrants leaving Czechoslovakia for the
South American States was as follows:
Adults

Children
under 10 years
of age

Argentb1a
Brazil
Paraguay

.
.
.

472

Colombia
Ecuador

.
..

36
173
26
16
16
19

Chile
Venezuela
Peru

.
.
.

9
I
I

Uruguay

Bolivia

.

.

IIO
3
35
7
3
I

4
I

Total

582
39
208
33
19
17
23
10
I
]

The corresponding figures for 1937 were:
Adults

Argentina
'" . .. .. .
Brazil
Paraguay
Uruguay.............
Bolivia

Colombia
Ecuador.............

Chile................
Venezuela . .'. . . . . . .. . .
Peru .•.......•.•,...-

503

22
II6
27
17
9

Children
under 10 years
of age

93
7
23
8

4

2
2
I

8
I
2

I
I

Total

596
29
139
35
19

II
5
8
2

3

To these figures must be added 2,700 emigrants to the D.S.A. and
over 1,300 toCanad~.· ,
.
,
These figures sho-w_that. Czechoslovakia must follow with close
attention all steps tak<:n to ensure that emigration-and especially
emigration for settlement-s-is organised in conditions likely to guarantee prosperity and success for the settlers in their country of adoption
oversea.

-113

~

From a technical point of view we consider it essential that the States
should succeed in concluding agreements similar to those which the
Argentine Republic concluded in 1987 with the Netherlands, Switzerland and Denmark-and to that concluded between Bolivia and
Poland-under which a joint committee composed of representatives
of the emigration and immigration States concerned was set up to
make an objective study of the conditions necessary for the success
of emigration for settlement.
For this purpose it is necessary, in our opinion, that the immigration
countries should notify the emigration countries of their plans for
the establishment of-foreign settlers in their territories.
In particular these plans should indicate:
- (1) In what territories natural conditions are favourable for collective settlement;
(2) Details for these territories concerning:
(a) nature of communications,
(b) quality and nature of the soil,
(c) basic prices of land,
(d) cost of initial development work;
(8) The average cost of setting up an agricultural undertaking
capable of supporting the owner;
(4) When and at what :prices the necessary implements, tools,
instruments and machmery may be purchased;
(5) What crops can be successfully grown on the land in question;
(6) What measures will be taken to secure suitable markets for the
produce;
(7) If, in the State in question.. there are financial establishments
which will provide the settler with _a long-term mortgage loan
on favourable terms,
(8) What cultural and health facilities exist in the country.
We are fully aware of the great difficulties with which.we will meet,
especially at the present time, so long as no improvement is made in
currency relations, the international money market, the high cost of
transport and the low output of raw materials.'
'
We are extremely pleased to note that the International Labour
Oigabisation has been able to arrange for a thorough study of these
vario'wJpoints, and we hope it will be possible to draft plans which
may ~, llllCCessfully applied in the common interests of the emigration
and .immigration countries.
'

Speech by Mr. V. Dragouttnovltch f Yugcslavfa)

a

Mr. Chairman, Gentlemen: I should like to put before you in
few words the views of the Royal Government towards the present
Conference.
The Royal Government of Yugoslavia welcomes most cordially the
initiative shown by the International Labour Office in convening this
Conference, the object of which is of very real interest, affecting as it
does equally the countries whose surplus population is eager to
8

— 114 —
emigrate and those which are ready to receive them as immigrants
and settlers.
As to the question under consideration, the Royal Government
considers in the first place that the migration problem is closely bound
up with a series of other questions, internal as well as external in
character, and above all with financial questions which are not the
same for all countries and should therefore be dealt with separately.
These questions have been admirably explained to us this morning
in the speech by Mr. Mazurkiewicz who, with his profound knowledge
of the subject and his great personal experience, has been able to
present a striking picture of the various aspects of the problem and
point out the conclusions to be noted by the immigration, and more
especially by the emigration, countries. The Yugoslav delegation
cannot do better than associate itself with the views and conclusions
of the eminent representative of Poland and therefore begs to give
them its most cordial support.
At the same time, the Yugoslav delegation desires to point out that,
for the time being—and for reasons which we will explain later in the
course of the Conference—the Royal Government considers that
Yugoslavia has no need to give special consideration to the question
of the settlement of its nationals abroad on a large scale. For these
reasons the problem and the practical aspects of migration for settlement have for the moment only a rather theoretical interest for
Yugoslavia.
Nevertheless, the Yugoslav delegation, earnestly desiring to cooperate in the work undertaken by giving all the assistance in its power,
expresses the most sincere wishes for the success of the work of the
present Conference.

Speech by Mr. J. A. A. Hartland (Netherlands)
The work of this Conference is of very great interest to the Netherlands. In our country the population is dense, we suffer greatly from
unemployment and we are going through a very acute agricultural
depression. We therefore greatly appreciate any facilities for emigration to oversea countries which may be offered to us.
In the past Dutchmen have emigrated to all countries in the world.
In recent times this free migration movement has, as you all know,
tended to come to a standstill. In consequence, it now becomes
necessary to find new emigration channels. We have therefore heard
with great pleasure the representatives of a number of countries,
especially American countries, declare in favour of a revival of emigration.
The financial questions and those of a technical and economic
character appear to us to be the most important to settle. We
consider that in the first place the necessary technical and economic
studies should be undertaken. If settlement schemes are to be organised on a large scale it is essential to make sure that the economic
basis is sound. The settler must be able to obtain his living, to make
his undertaking prosper, and to meet the debts and obligations he
undertakes. Por that, it is desirable to develop certain industries
and to improve the cultivation of certain crops—for example, tobacco,

— 115 —
sugar, the dairy industry, etc.—so as to ensure as regular an income
as possible for the settlers.
In addition, the investment of capital in settlement schemes must
be made attractive.
We hope that the present Conference will succeed in indicating how
best to promote and facilitate migration for settlement.

Speech by Mr. Gastelú Concha (Ecuador)
The initiative taken by the International Labour Office in convening
this Conference has not failed, I feel sure, to awaken real interest in
the countries of Latin America. The formulae and solutions put
forward here as the result of our work may indeed have a decisive
influence on the future of the Latin-American Republics.
As shown by the informative report prepared by the International
Labour Office, the Governments of these countries and public opinion
there have come to the conclusion that only planned immigration and
settlement can promote the development of their natural resources, to
the benefit of the inhabitants themselves and the immigrants who settle
there. It has also been understood that the age of spontaneous and
uncontrolled immigration is past, and that now a comprehensive
policy of long duration is necessary. Past experience shows that
individual initiative left to itself cannot give satisfactory results either
for the immigration countries or for the immigrants themselves. Hence
the necessity for co-ordination and organisation which will ensure
success and avoid the risks which are always there if measures of a
technical, financial and administrative nature are not taken. From
this standpoint the help of the International Labour Organisation
may be most valuable. The present Conference, and I desire to stress
this point, meets a general feeling of uneasiness felt with regard to this
problem, which is one of the most important questions in Latin America
and which may be described as population and the development of
national resources.
In this matter individual efforts cannot give the results we desire,
whatever the possibilities and means at the disposal of the various
States. Settlement schemes can be carried through only with the
co-operation of the emigration and immigration countries. Whereas
one group of countries is concerned with stemming the tide of immigration, the others are interested in their nationals being successful in
improving their position in other lands and under other skies. Agreement and co-operation between States in such matters call for an
exchange of information relating to the requirements of one party and
the potentialities of the other, in addition to mutual assistance in
transport arrangements and the equipment and operation of the
settlers' farmsteads.
The Republic of Ecuador has always kept its doors open to men who
wish to begin a new life there. No restrictions of an ethnical character
and no preference have ever limited the admission of immigrants, and
if lately laws have regulated immigration, they were the outcome of
new circumstances resulting from the depression and the desire to
protect the interests of the immigrants themselves.
I am not in a position and do not desire to describe in detail the
possibilities which the Republic of Ecuador offers for systematic
and planned settlement, but both in the western and eastern parts

— 116 —
of the country large tracts of land are being offered at reduced
prices and even without payment.
Not only are State lands available for settlers, but private estates
are being taken over and divided up into holdings or used for the
establishment of agricultural co-operative societies. These estates are
being sold at very reduced prices and land may be purchased by means
of an initial payment and instalments spread over a period of years.
The climate is most varied, although sometimes the word Ecuador
(Equator) leaves the impression that the whole country has a tropical
climate. True, on the Pacific coast the tropical climate is the same
as in other places in America situated in the same latitude, but if it
is remembered that the country stretches from the Pacific Ocean to
the top of the Andes it will be understood that temperate districts are
to be found similar in climate to the different European countries and
therefore suitable for agricultural settlement by those peoples.
The report prepared by the International Labour Office says that it is
essential to set up a service of information on the possibilities of settlement, the climate and the land available. A service of this sort can
be organised only with the co-operation of the administrative departments of each country, which are in a position to supply detailed information. Ecuador will always be ready and willing to supply such
information when required, and I will therefore not insist on this point
in my brief description of my country's possibilities.
In Ecuador we have a Ministry of Social Welfare, Agriculture and
Industry with an Immigration and Settlement Section. The Section
makes a study of all questions connected with immigration and deals
with all relevant matters, in accordance with the instructions of the
Ministry. I t includes a chief of section and other officials of different
grades who deal with the various questions coming within the competence of the Section.
I have already referred to the real interest felt by the Latin-American
countries in the initiative taken by the International Labour Office.
I desire to add that my Government is ready to co-operate effectively,
and in this spirit it has empowered me to make a suggestion to the
Conference which may be summarised as follows :
(1) Appointment of an International Migration Commission with
headquarters in Geneva, on which all countries so desiring would be
permanently represented. The Commission would have wide powers
to direct migration movements in accordance with the requirements
of the various countries.
(2) The various countries would provide for the cost of transport in
their respective territories, while the cost of transport between ports
would be met by the Commission in its capacity of directing body.
(3) For such purposes a special fund administered by the Commission
would be established from the proceeds of a 10 per cent, deduction from
profits made by agricultural banks and agricultural mortgage banks
established in the countries signing the necessary agreement.
(4) Each signatory country would have to enact the necessary
legislation for authorising the payment of 10 per cent, of the profits
of the agricultural banking institutions to the special fund mentioned
above.
By these suggestions, my Government not only desires to facilitate
a solution of the problem but also to show its faith in the work of this
Conference.

— 117 —

Speech by Mr. A. Carbonnel Debali (Uruguay)
The question of migration for settlement is of great interest to my
country. This problem has been studied on different occasions by
the competent bodies and the press has dealt with its various aspects.
The general opinion in Uruguay is that the country requires immigrants likely to merge into our population engaged in agriculture and
stockbreeding and that, with the means at their disposal and without
any great financial assistance from the State.
Such financial assistance is usually no more than a grant of land
which can be obtained under favourable conditions. To assistance
of this nature small loans might possibly be added at the outset.
The main thing required of immigrants will be a special knowledge
of all branches of agriculture so that they may be an economic asset
to the country receiving them. Immigrants would be divided into
small groups of the same nationality and in accordance with their
special qualifications, and would be established in districts offering
them the best chance of success.
Thus, for example, the eastern zone of the country could be colonised
by guiding the settlers towards fruit-farming. The coastal zone
would be rather more favourable to intensive agriculture of a general
nature; the Rio Negro, or central zone, would be specially suitable
for crops requiring a plentiful supply of water, etc. Before introducing
settlers in Uruguay steps must be taken in each case to ascertain
their plans, so as to make sure that only those likely to succeed in
their new venture are admitted.
Their establishment and work in the new settlement would be organised in small groups of the same nationality so as to render their
change of environment less disagreeable and their communal life
more attractive. At the same time they would be brought into
close contact with other groups of Uruguayan or other nationality,
so as to avoid future difficulties due to race, language and differences
of religion, and to facilitate their general assimilation in the mass of
the population.
The immigration of labourers, itinerant salesmen and workers in
general is of little interest to Uruguay. Our chief aim is to populate
the countryside with elements able to increase the output of the
country, ensure more abundant crops of better quality and raise the
standard of living of the whole population.
I t has also been noticed that when the settlers are left completely
free to choose their working methods the economic results are unfavourable. This leads us to suggest the introduction of a system of
planned agriculture with a wide selection of produce varying from
single-crop cultivation to the growing of all sorts of industrial crops,
which offers greater profit both to the workers and the country in
general in view of the requirements of the home and international
markets.
In order to show more clearly the interest which the Government
of Uruguay has in the immigration problem, we would call attention
to the action taken by the Ministry of Foreign Affairs in 1937 requesting the competent authorities to study the various aspects of the
question in relation to the national demographic movement : the

— 118 —
population of the country districts and its distribution by zones, the
movement of population in populous centres and the indices of this
movement together with its relation to the natural growth of the population, the distribution of natural resources in the various districts,
and the means of increasing their value, the suitability of the various
zones for selected immigration, etc.
In this way more ample information will be available and legislation
can be adapted to new conditions, as suggested in the resolution
adopted by the Inter-American Conference for the Consolidation of
Peace which was held in Buenos Aires towards the end of 1936.
Similarly, it might also be possible to systematise migration by
encouraging it through bilateral agreements of a social type.
The Ministry of Foreign Affairs, following investigations carried out
in the course of its international activities, also considers that the
immigration problem is of great interest for the country, in view of
the fact that European emigration has been a decisive factor in the
ethnical constitution of Uruguay and in its economic evolution. In
short, the natural rise in the birth-rate of the country must be scientifically combined with increased immigration so as to maintain a normal
rate of increase in the population of all parts of the Republic.

Speech by Mr. E. Komers (Austria)
Austria is greatly interested in the study of the questions which the
Conference of Experts is called upon to discuss.
In my country unemployment is far from negligible and although
our main preoccupation is to find work for our compatriots in Austria
itself, we are also very interested in emigration both to oversea and
continental countries.
Since the formation of the new Austria up to the present day, the
number of emigrants who have left Austria is 80,000, including
34,000 for the U.S.A., this latter figure being due mainly to the fact
that the regulations governing the admission of immigrants to that
country were for some time not so strict. A large number of these
emigrants also went to South America, including 15,000 to Brazil,
over 8,000 to Argentina, over 1,000 to Uruguay, over 400 to Chile,
about 400 to Peru, etc.
We have often endeavoured, with varying success, to establish
settlements in foreign countries, not in the political sense of the word
but in its economic meaning. One of the best known is the Thaler
settlement in the State of Santa Catarina, where there are about
600 settlers. The main object of this settlement is to assist the settlers
during the years following their arrival, which are always most difficult, so as to secure for them a higher standard of living than would
otherwise be possible.
Austria is in favour of the system of bilateral treaties indicated by
the Office and we will be extremely pleased if the emigration and immigration countries can manage to co-operate under the auspices of the
International Labour Office with a view to concluding satisfactory
agreements. The Conference may therefore rest assured that Austria
will do all in its power to further the conclusion of such agreements.

— 119 —

Speech by Mr. Costa du Reis (Bolivia)
It was with the greatest pleasure that my Government accepted
the invitation to take part in this Conference of Experts, which is
called upon to discuss a problem of the greatest interest to Bolivia,
and one which is of economic, humanitarian and social importance.
Bolivia is a country of raw materials, with immense deposits of
natural wealth and, therefore, like all the Latin-American countries
mentioned by my colleagues this morning, it requires both industrial
and agricultural labour.
In my opinion the immigration countries can be divided into two
groups : (1) the large immigration countries, i.e. those which before
the war received large contingents of immigrants, especially at the
beginning of the twentieth century; (2) those countries which cannot
yet really be called immigration countries, i.e. those which are able
to receive immigrants but which for economic or geographical reasons
have not yet reached the capacity of absorption possessed by certain
other States. Bolivia belongs to the second group.
For geographical reasons which you must all know and which have
put Bolivia in a tragic position, we have been unable to receive, as we
would have liked, large numbers of immigrants in search of happiness
and prosperity, and who also bring prosperity to the country in which
they settle.
Bolivia has three sorts of industries, the first of which, the mining
industry, gives my country the rank of the second tin-producing
country of the world. This industry is carried out on the high plateaux and is able to provide employment for workers skilled in this
sort of work. The other two fundamental industries include that carried on by small craftsmen, and agriculture.
The temperate and tropical zones offer possibilities for agriculture
to the same extent as the tropical districts of Brazil, Peru, Ecuador, etc.
I t is on this subject that I desire to give the Conference some details.
Bolivia has organised an immigration centre in the State of Cochabamba, which has been in existence since 1923 and which now begins
to give appreciable results. There our efforts have been directed
mainly towards the organisation of local conditions which will enable
the immigrants to settle down and prosper.
Among other things, the Bolivian Government exempts them from
passport fees, pays the cost of their journey from the frontier to the
settlement area, and exonerates them from customs duties. Each
settler is granted, free of charge, a piece of land of at least 625 square
metres in the settlement villages or towns, and a holding of arable
land varying from 25 to 50 hectares; the immigrant is also granted
free quarters during two months and receives the necessary seed and
implements free of charge. In addition he is lent one quarter of a
hectare of land under crops, which he must return in the same condition at the end of eight months, while he has free postal, telegraphic
and wireless facilities.
As to the conditions of transport to South America, this is a matter
which could be arranged by bilateral treaties between my Government
and those countries which desire to send emigrants to Bolivia.
The main settlement area is that of Todos Santos, in the province

— 120 —
of Cochabamba, a t an altitude of about 300 metres. There, 600 hectares are already in cultivation and there is a reserve of 18,459 hectares
capable of providing concessions for 800 settlers. We have also
another 250,000 hectares of arable land in the inter-section of the
Tchilo and Mamoré rivers which we intend to open up to immigration
and where the building of the necessary roads has already been begun.
This brief summary of the facts will show the possibilities of my
country, possibilities which will become increasingly attractive.
My Government is already in contact with several European States
and we are very satisfied with the relations thus established which
open up good prospects both for them and ourselves.
Moreover, my Government would willingly support any scheme—
as, for example, that just put forward by the delegate of Ecuador—
that may be proposed with a view to the solution of the financial
problem, and which would enable the labour-producing countries of
Europe and the labour-consuming countries of South America to set
up an organisation to co-ordinate the requirements of the Governments
and to find the necessary funds.

Speech by Mr. L. de Böszörmenyi (Hungary)
On behalf of the Royal Government of Hungary, I beg to state that
Hungary follows with great interest the work of this Conference,
which is called upon to solve the technical and financial difficulties
encountered, and likely to be encountered in the near future, by
emigration for settlement.
In order to throw further light on the Hungarian attitude, I must
call your attention to the fact that two years ago the Government
again took up the work of organising small rural holdings throughout
the country. This is the method by which the Hungarian Government intends to satisfy the people's desire for the possession of land.
As, however, it is quite possible that economic or financial factors
may prevent the complete success of this scheme, the Hungarian
Government considers that it must keep open possibilities of
emigration.

Speech by Mr. Arocha (Venezuela)
The general discussion which took place yesterday enables us even
now to take stock, not only of the two classical and often antagonistic
standpoints of the emigration and immigration countries, but also
of the desiderata of both groups of countries, the experiments tried,
not always with success, by some of them, and their manner of considering the question in accordance with their individual characteristics
and interests.
The case of Venezuela is so special that it must not be compared to
those mentioned so far. I shall now endeavour to describe it to you
as briefly as possible.
In the first place, you must not expect us to provide you with data
concerning settlement in our country, because so far we have none.
Although since the moment when at the beginning of the nineteenth

— 121 —
century we became a free nation until the present day there have
always been far-seeing patriots who understood the decisive role that
immigration should play in the development of the country, hitherto
we have not been able to find the opportunity or the means—and
especially the man—to put these theories into practice.
Nowadays the position is quite different. Under the stimulating
influence of a fully democratic Government, the country at last sees
itself as it is—young, rich and conscious of its historical destiny.
With informed enthusiasm and faith full of assurance it has therefore
undertaken the systematic exploitation of its boundless resources, the
full development of its potentialities, or to put it briefly, the creation
of a modern State.
With this end in view, a three-year plan, covering the last three
years of the President's tenure of office, has just been established.
Of this plan, vast in dimensions, I will only mention for the time being
that part which in my view constitutes its very essence, and which
moreover has to do directly with the question before the Conference.
The Presidential Message of last January calls for " the creation of
an Immigration and Settlement Institute which will intensify the
measures taken at present to attract selected groups of people to the
country, and to arrange not only settlement sites for these groups,
and plans for the cultivation of new crops, but also the technical
direction of such matters as credit, transport and the marketing
facilities for new products ". The Message also referred to " the
utilisation of the land, which has recently become the property of
the nation, for the establishment of a vigorous and co-ordinated
policy of mixed settlement by nationals and foreigners ". Now we
desire that the Immigration and Settlement Institute which will be
set up without the drawbacks of tradition and without previous
commitments should be a perfect institution in every way.
It would be interesting for us to learn your opinion as to the organisation of this new institution, which we will, of course, model on
our national requirements. The debate which will follow on the
different items of the agenda submitted to us by the Office seems to
me to provide a wonderful opportunity for drawing up, in the light
of the information provided by the valuable documents of the International Labour Office and by the great competence of the experts
attending this Conference, a series of guiding principles which will
serve as a basis for modern organisations of a technical, financial or
other nature, responsible for the management and supervision of
settlement schemes.
In the meantime we in Venezuela have already begun experimenting.
I had occasion a few months ago to visit personally the first settlements
in our country, and I am pleased to be able to inform you that
my colleague, Mr. de las Casas, is at present in Europe, where he has
been sent by the Ministry of Agriculture, to recruit settlers. In a
few weeks' time the first large contingent of European families will
leave to settle in the Chirqua valley, a district eminently suitable for
settlement.
This, gentlemen, is tantamount to saying that we possess the
necessary land, and I would add that we have plenty of it in the
various parts of the country. The climate in these districts varies
from the tropical heat of the Llanos and the Atlantic coast to the
Swiss-like cold of the Andine Cordillieras, with villages situated at over

— 122 —
3,000 metres and roads climbing up over 4,000 metres through tablelands with the most delightful climate. All tastes can be suited, and
all sorts of crops can be cultivated : the range extends from the crops
of Northern Europe to those which are the speciality and joy of the
torrid zone. Equal opportunity is to be found for stockbreeding,
mining or forestry work. Venezuela is the foremost petroleumexporting country of the world, while coal, asbestos, copper, diamonds, etc., are also to be found.
To give you some idea of the size of the available State lands in
Venezuela, I would quote a short and simple phrase from the threeyear plan—" The incorporation of the Grand Sabana in the national
economic structure ". This is a plateau of some 30,000 square kilometres in the south-east of the country bordering on Brazil and British
Guiana. Its height above sea level varies from 1,400 metres in the
north to 900 metres in the south. The temperature falls to as low
as 6° C. Water is most abundant. Among the really astonishing
number of waterways there are several large rivers open to navigation
throughout the year. Mosquitoes are unknown. The modest
attempts made so far show that this land is suitable for an enormous
variety of crops, and yet the population of this vast territory includes
only about 3,000 Indians, half a dozen missionaries and a few Government officials.
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territories belonging to the Agricultural Bank, itself a State concern,
or which could belong to it whenever the Bank desires to call in overdue
mortgages. Furthermore there are private estates which could, if
necessary, be bought by the nation, so that I think you will all agree,
gentlemen, that we are entitled to say that we possess land.
We have money, too! By this I mean that we have sufficient
capital to begin in an organised, moderate and prudent fashion. We
are fully aware t h a t the cycle of mass migration has, happily, come to
a standstill for ever, and with it there is an end to the economic,
ethnical, social, political and international risks which those immense
streams of migrants caused in our country, as yet in process of formation. We want no more of such things, and neither do we want
loans.
Venezuela—a country without debts—has no intention of contracting them. I said just now that our case was a special one. It is so
also on account of the generous conditions we have to offer to the
immigrant. Our legislation and the regulations on this subject are
not yet fully up to date. They are at present under consideration,
like all other matters which have to do with the definite organisation
of settlement plans. But the contracts which my friend Mr. de las
Casas has had signed by the settlers, who leave for Venezuela in a few
weeks' time, provide, among other things, for the following advantages : free transport from the immigrant's place of residence to the
Venezuelan port, free transport between the port and place of settlement; a grant of at least 6 hectares of arable land with an extra
hectare for each son over 15 years of age, or for any other relatives,
this land becoming the property of the immigrant after ten years;
a supply of food for the immigrant and his family during the first
six months ; a supply of implements and animals ; free medical service,
including medicines; the requisite social hygiene and hospital and
surgical treatment; free schools; a supply of seed; the allocation of

— 123 —
land for collective stockbreeding and common coffee plantations on
which the settlers must work on days indicated by the overseer of the
settlement, and of which the profits will be distributed, in proportion
to the work performed, to the settler's children to enable them to
buy land later on for themselves. A period of five years is allowed
for the repayment of some of these advances, but the Government
may extend this period.
The settler is also entitled to all the rights which the Constitution
and laws of the country confer on foreigners.
In case of naturalisation, the settler is exempted from military
service, except naturally in the case of an international war, but even
then he is not expected to serve against his native country.
These few facts will give you some idea of what our settlement
legislation will be like. It will be completed by modern social legislation which we have been preparing for the last two years with the
very efficient assistance of the International Labour Office; three
experts put at the disposal of the Government by the Director are
at present in Caracas for this purpose. I believe I am right in saying
that others will shortly leave to co-operate in the work of putting our
immigration plans into practical operation.
As you see, gentlemen, we have land, we have money, and we are
determined to do our best. I might add that we already have settlers.
In point of fact the applications so far received greatly exceed our
present power of absorption. We require only one thing : technical
experience. We have come here to find it.
Mr. Chairman, I beg to propose that the following matter be studied
by this Conference : " The national organisation on standardised lines
of official, technical, financial and other bodies responsible for emigration and settlement."

Speech by Mr. J. M. Yepes (Colombia)
The delegation of Colombia desires to pay a tribute to the initiative
shown by the International Labour Office, which by organising this
Conference has accomplished really constructive work on behalf of
international co-operation and the peace of the world. This endeavour
to bring the nations together in a field where their interests are extremely liable to clash, shows that the International Labour Office is
one of the finest and greatest of the political and social institutions of
modern times.
It goes without saying that our presence here proves the desire of the
Colombian Government to assist by all means in its power, and as a
country capable of receiving large numbers of immigrants, in the
settlement of questions connected with the important question of
migration for settlement.
We Colombians find ourselves face to face with a problem which
is relatively new to us. Colombia, indeed, has so far had no real
experience of the question of foreign immigration which can be compared to that of other large American countries like Argentina, Brazil
and the U.S.A. The growth of our population is a purely natural
one, but it is considerable. During the present century the population

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of Colombia has increased from 4^ millions to nearly 10 millions—
the present-day figure. This is at one and the same time our strength
and our weakness, for although we are able to boast that we have a
very homogeneous population, the fact remains that the 1,200,000
square kilometres which go to make up our country are very thinly
populated. In fact we have less than 10 inhabitants to the square
kilometre. And this occurs in a country which possesses thousands
and thousands of kilometres of coast on the Pacific Ocean and the
Atlantic Ocean; which has the widest imaginable range of climate and
land capable of producing commodities met with in all other parts of
the world and in all seasons, and which, above all, is suitable for settlement by large numbers of foreign families. Add to this an essentially
democratic political system which ensures liberty for all, nationals and
foreigners alike, under which all citizens are equal before the law, and,
a rare thing nowadays, which allows foreigners of good character to
exercise a trade and earn a living. If I recall these facts which are
known to you all, it is in order to show the great possibilities which
Colombia offers to all men of goodwill who desire to come and work
in our country under the protection of our authorities and in accordance
with our laws.
Up to the present the Colombian Government has turned its attention mainly towards internal settlement, by granting facilities for the
free stCQuisition of undeveloped Stato líiiíds. £¡.~d hv the constructiou
of roads and the free, or practically free, grant of agricultural implements, seed, and domestic animals for breeding purposes. Moreover,
official and private banks co-operate with the State by granting loans
to settlers under very favourable conditions and on easy terms, the
only obligation being that such loans must be used to pay for agricultural work and the cost of storing the harvest until it is sold.
Colombia would be ready to grant to groups of foreign agricultural
workers the same facilities and privileges as those hitherto reserved
for nationals, as well as the other special facilities granted to immigrants. These advantages include among others : free information as
to the parts of the country most suitable for the establishment of settlers ; exemption from certain taxes, such as customs duties and the
land tax; exemption from the obligation to deposit caution money
on entering the country; free visa of passports; gift of a dwelling house
in some cases.
Other more substantial advantages could be agreed upon with the
immigrant's country of origin, or with the companies set up to promote
emigration. I t must, however, be understood—and I wish to lay
particular emphasis on this point—that Colombia has never encouraged
in the past, and would have no interest in encouraging in the future,
the immigration of staff dismissed by the industrial undertakings of
other countries, for immigrants of this kind could not easily adapt
themselves to agricultural work and would endeavour, in view of their
town habits, to find work in the towns and thus endanger the standard
of living of the national workers. The occupations which in the
interests of the country and of the immigrants themselves could be
exercised by immigrants include stockbreeding and agriculture and
a few subsidiary trades, such as the dairy trade, kitchen gardening,
poultry farming, bee-keeping, etc.
But it must be emphasised that in return for the privileges granted
to them, Colombia expects immigrants to respect its national insti-

— 125 —
tutions and all legislation at present in force or which may be introduced with regard to the admission and residence of foreigners in the
country. We consider that such matters must be left to the State
concerned, which cannot be shackled in any way by any Convention
or agreement of an international character. Each State is entitled to
defend its own civilisation and its Weltanschauung as it likes without
any interference from others.
In order to achieve the aims of the present Conference, the Colombian delegation ' proposes the establishment of joint committees
composed of representatives of the immigration and emigration
countries. These committees would be required in each case to carry
out the preliminary technical studies and the financial and other
arrangements necessary for the settlement of immigrants. The
ommittees would also exercise supervision over all settlements
stablished by their efforts. In this connection our proposals tally
very largely with those made yesterday by our distinguished colleague
from Ecuador, Mr. Gastelu.
In conclusion, I think it would be useful to give this Conference and
all those whom the question may interest a few details as to the way
in which settlers may obtain possession of undeveloped land belonging
to the Colombian State. Such land may be acquired by settlers or
farmers who cultivate it in a permanent manner and build their
home on it. In this way the settler can become the owner of 25 hectares of land, or of the area cultivated by him. But the total amount
of land obtained in this manner may not exceed 50 hectares. He
may, if he is a large-scale farmer, obtain 600 hectares for cultivation
and an additional 800 hectares for cattle-breeding. This is what we
call individual settlement.
But we also have settlement organised by the Government. Act
No. 114 of 1922 authorises the Government to found settlements
directly or through the intermediary of settlement organisations offering the necessary guarantees. In virtue of the Act, a Settlement
and Immigration Section has been set up in the Ministry of Agriculture
and Commerce to deal with all matters connected with settlement on
State land.
Up to the present the Settlement and Immigration Section has
formed three State settlements and is now organising another three.
The settlements already organised include : the Samapaz settlement
(State of Tolima and Cundinamarca) where 400 families have been
established by the Government (Decree 383 of 1931); the agricultural
settlement of Bahia Solano (set up on the Choco Estate in virtue of
Decree 925 of 22 May 1935); and the most recent of all, the Codazza
agricultural settlement (State of Magdalena) set up in virtue of Decree
No. 654 of 18 May 1937.
In these State settlements, in addition to the subsidies granted
under the respective Decrees, the settlers receive social assistance,
medical attendance, free hospital treatment, education in State elementary schools, etc.
In order to improve their prospects, these settlements receive, in
addition to Government help, assistance from banking institutions
such as the Agricultural Mortgage Bank and the Agricultural Credit
Fund, which, although independent institutions, co-operate with the
official organisations.
Such are our achievements to date, our future plans, and the contri-

— 126 —
bution which we desire to make to the great work for peace undertaken by the International Labour Office, and of which this Conference is a living proof. We in Colombia are greatly in favour of all
measures likely to establish harmonious relations between nations and
to foster peaceful international co-operation. That is why we have
undertaken the work we are at present engaged on. It is for these
reasons that we hope that this Conference on Migration for Settlement, which has been convened under such good auspices, will throw
light on at least one obscure point of the international horizon.

Speech by Mr. F. Garcia Oldini (Chile)
Very strict limits have been fixed by the Governing Body to the
competence of this Conference. But, in order to make the best use
of this limitation and to ensure its technical character, it is necessary
to trace the general outline within which it will be easier to consider
the question as a whole and to decide what must be the subject of
our discussions.
The problem of immigration for settlement, like all other great
questions of our time, is caused by factors of a national and international character, on which it reacts in its turn.
On the one hand, it would seem to be one of the most important
elements of a policy of peace between nations. On the other hand,
it is a decisive factor in the normal and progressive development of
nations, which may derive from it renewed strength and increased
possibilities for the future.
But there are also international factors which act negatively and
sometimes upset conditions which seem most firmly established.
Thus, the economic depression, of which the effects were acutely
felt in the new countries, that is to say, those most suitable for immigration, has led to a sort of paralysis and a slackening of their vital
activities and also to extensive unemployment, and these factors
reacting in turn on international circles were bound to constitute an
obstacle to the development of immigration for settlement.
It is impossible nowadays to make a useful study of the question
of migration without allowing for the influence of the factors which
I have briefly described. The policy of my Government has had to
take them into consideration and to follow attentively their varying
influence on the life of the country, its economic development and the
welfare of its inhabitants.
These economic and social considerations find their expression in
the Constitution of 1925 which, in Clause 10, stipulates " that the right
to hold property is governed by limitations and rules required by
social progress and the law may in consequence impose the obligations
and easements for public utilities which may be dictated by general
interests ".
The trend given by the text of the Constitution to agricultural
settlement policy and consequently to immigration policy led to a
series of laws, including that issued on 10 December 1928, establishing
the Settlement Fund, that of 30 April 1931, relating to settlement in
the Magellan territory, that of 20 May 1931, of a more general and
wider scope, that of 15 February 1935, which takes up the question
as a whole, fixes the guiding principles of settlement in the country,

— 127 —
reorganises the Settlement Fund and endows it with the money
necessary for the achievement of its work, and, finally, the Act of
24 February 1937, which deals in particular with settlement in the
Aysen Province.
The letter as well as the spirit of these laws bear permanent witness
to the concern felt by the Chilean Government in respect of the twofold
problem of stimulating immigration as a factor of demographic and
economic development, and of favouring national settlement in order
to give effect to the constitutional precept which lays down that " the
State shall permit an adequate division of property and the constitution of family property " as a means of combating unemployment
and of stability and economic and social progress.
These two essential aspects of the question are expressed textually
in the preamble to the Act of 20 May 1931, which in the first of its
considerations states that " the world depression, which is also reflected
in our industrial activities, leading as it does to unemployment, has
once again brought out the utility of increasing as far as possible the
number of persons in agricultural employment who of all classes suffer
the least from the effects of the depression ", while in its fifth consideration it says " that it is desirable to encourage selected foreign
immigrants who will increase the size of the employed population and
introduce a new stimulus likely to spread to our working classes ".
I t was these same considerations which led the Government of
Chile to issue the Act of 15 February 1935 to which I have just referred
and which is the keystone of the whole settlement policy of our
country.
The importance which the Government and the bodies responsible
for its enforcement attach to the national and social aspects of the
Act is clearly expressed in the public administrative regulations which,
in the section dealing with the selection of candidates for immigration,
give preference to those who, other things being equal, can claim to
be unemployed.
As to the importance attached to immigration for settlement, it is
defined, apart from the activity of the Government and the Fund in
this field, in the following sentences of the report prepared by the
Management Committee of the Fund in 1935 : " The Settlement Act
aims at increasing the population of the country and for this purpose
calls for national settlers as well as for foreign settlers. . . ."
Further, " the Fund shall take steps to introduce selected foreign
settlers, being convinced that the qualifications of these settlers will
be a sure factor of progress. . . ."
This point is emphasised a second time in the conclusion of the
report : " The necessity of developing the activity of the Fund and of
accelerating the growth of the population make it desirable for us to
receive a stream of selected immigrant farmers, whom the Fund will
establish methodically on the land."
The facilities granted to settlers by the Fund may be summarised
as follows :
(a) A land purchase loan bearing 4 per cent, interest and 1 per cent.
interest for amortisation, which must cover the cost of the land
and the expenditure incurred by building operations, irrigation
work, road construction, certain branches of cultivation,
fencing and other improvements. The repayment of this loan
begins two years after the acquisition of the land;

-128 -

(b) loans of working capital and loans for certain permanent
improvements not covered by the land purchase loan. These
loans also bear 4 per cent. interest and may be either individual
or collective.
Individual loans for the purchase of seed and fertilisers are repayable
within two years, loans for the purchase of stock and implements in
five years, while those granted in connection with expenditure for
fencing, machinery, fruit trees, plant, drainage, etc., must be repaid
within ten years. Finally, loans granted in connection with permanent improvements carried out under the supervision of the Fund are
repayable in fifteen years and those for the construction of a house
not included in the value of the holding, in twenty years.
The periods for the repayment of collective loans granted to groups
of settlers for general utility work are fixed in each case by the Management Committee of the Fund on the basis of the permanent or other
nature of the work.
As may be gathered from the spirit of these provisions and their
comprehensiveness and liberality, we intend to carry out settlement
on thorough lines, but in return we expect the settlers to become part
of our people.
But, as I have already said, the development of immigration for
settlement depends largely, and in all countries, on the play of economic factors of an international nature, which by their influence on
commerce and production and consequently on the employment
market, compel Governments to turn their attention to one or other
of the fundamental aspects of the question to which I have referred
in the course of my speech.
It is this state of affairs which necessitates a closer study on our
part, froma new and purely technical angle, of immigration for settlement, which is no longer a matter for individual action, but depends
increasingly on direct or indirect action by the State.
The resolution of the Santiago Conference, while based on general
considerations and intended to cover immigration in all its forms,
undoubtedly had in view this modern and characteristic conception
of the problem.
It is. surely the fact that the State has been obliged to intervene
directly in immigration for settlement and the fact that Governments
must consider this problem as a part of a series of questions concerning
the life and well-being of the nation in general, which render the work of
this Conference Significant and necessitate its strictly technical limits..
To be practical and fruitful, settlement, which means the possibility
of increasing production, must be accompanied and completed by
increased opportunities for employment and the consumption of
additional produce. Otherwise, it is apt to be or to become dangerous.
Considered from this angle, immigration for settlement becomes
part of a more general and la~er plan within which, without in any
way reducing its importance, it IS only one of the factors and one which
it may perhaps be wrong to consider separately and apart from the

w~~°Jei:t~o:~t~·

considers that' it depends largely on the
comprehension of these fundamental ideas whether the work of this
meeting-which is one.of the happy results of the Santiago Conference
and consequently, to some extent, of the work of my country-will
be crowned with success ,and followed by practical and lasting results.

-- 129 --

Speech by Mr. H. d'Hartoy (Dominican Republic)
For many reasons, some of them of a sentimental nature, the
Dominican Republic could not but accept the invitation to attend
the present Conference, desirous as it always is of showing its friendship
for the American sister States and of giving the emigration countries
the formal assurance that the old Hispaniola of Christopher Columbus
is ever open to foreign workers who come to settle there in accordance
.
with the laws of the country.
As all the delegates present are aware, the Dominican Republic,
which has an area not much larger than Switzerland, is at this moment
enjoying a prosperity which some consider to be out of date and which
we know to be very great. But the density of its population barely
exceeds 80 inhabitants to the square kilometre. Our 50,000 square
kilometres of territory include over 85,000 hectares of rich virgin soil
which still awaits modern and peaceful-minded conquistadores.. Even
as it is, a number of settlements are making a fortune there fairly
rapidly, an example .of this being provided by a highly respected
Dutch Settlement which is noted for its good work.
I now propose to give a brief summary of the general conditions
in which settlers are welcomed in the Dominican Republic. On the
signing of a contract by the immigrant and the Secretary of State for
Agriculture, the former receives a free holding of 6 hectares of land
of which he has the use during five years, the State remaining a co-partner for that period. At the end of five years the settler becomes the
owner of the land but has to wait another five years before being
entitled to sell his holding. On selling it he may be granted another
holding.
.
But the advantages granted by the Government to settlers do not
stop at this. On his arrival, the State provides him, in the form of a
loan, with stock, agricultural implements and the seed required for
immediate operations. In exchange for these privileges, the value of
which will be appreciated by everyone acquainted with agriculture,
and to which treatment'by a particuIarly well-organised medical service
must be -added., the only obligation imposed on the settler is to break
up and cultivate the land offered to him by the State.
Such, in outline, are the methods which govern settlement in the
Dominican Republic where immigration has always been of an individual character. But I think I shall be able before this Conference
closes to give you some information as to our actual need for agricultural immigrants and even now I can assure you that in case of planned
immigration the Government of the Dommican Republic would be
ready to grant increased and new privileges.
On the other hand-and this is a matter to which I would respectfully beg to call the attention of the future members of the new organisation outlined yesterday by my distinguished friends from Bolivia
and Ecuador-it will be indispensable to examine with care the
physical fitness and vocational qualifications of would-be immigrants.
This necessity has moreover not~ap~d the notice of the International
Labour Office, as we find a reference to it in the really remarkable
report handed to us on our arrival and to which the eminent represen-,
tatives of the Argentine Republic, Poland and Venezuela have already
referred in flattering terms.
9

— 130 —
But I think it will be necessary to insist on this point. I t has
indeed happened—let us say some years ago, so that I may not be
suspected of alluding to recent events in no way connected with the
question in point—that so-called farmers received as such with open
arms by our country have considerably disillusioned us. When
yesterday the representative of Poland told us how first-class farmers
sold all their belongings in order to obtain the initial capital required
by settlers, he was of course thinking only of genuine farmers already
accustomed to manual labour.
But I would only ask those of you who become members of the
International Migration Commission, which undoubtedly we shall see
established before we separate, to take the necessary steps to make
sure that candidates for agricultural settlement are not merely good
people dazzled b y the thought of the tropical splendours which are
to be found in most if not all of the South American countries.
Having made this point, the Dominican Republic is pleased to
greet the different nations represented at this important Conference
and to offer them its modest but sincere co-operation.

Speech by Mr. P. A. Feldscher (Switzerland)
I also desire to thank the International Labour Office for the
detailed report which it has prepared and which throws a clear light
on the problem of migration for settlement such as it exists to-day.
The delegates who expressed their opinions yesterday were unanimous in recognising the importance of this problem and they also
expressed their pleasure at being able to make a study of it in common.
These sentiments are shared by the Swiss delegation, which is very
pleased to take part in the work of the Conference.
Switzerland has always shown a definite leaning towards emigration. Every year 4,000 to 5,000 people on an average leave for
abroad, where in many cases they take up permanent residence.
As a rule they do not find much difficulty in adapting themselves
to the customs and habits of the countries which give them hospitality. They have always gone abroad of their own free will and
many of them have not hesitated to abandon a fairly satisfactory
living and sell out in order to settle in oversea or other countries.
If in many cases the beginning was difficult, they have generally
succeeded in finding a foothold and in starting a new life in the course
of time. Often these emigrants called on their relatives or friends in
Switzerland to join them and assisted them on their arrival with
advice or in other ways.
During the periods of depression before and since the war, as many
as 10,000 emigrants left Switzerland during the course of one year.
Unfortunately, for some years, the diverse restrictions imposed on
immigration by the majority of the States have greatly hindered the
steps taken by our countrymen who desired to go abroad, and the
number who actually succeeded in doing so has been greatly reduced.
Nevertheless, the desire to emigrate still remains in us and there
are thousands in Switzerland who, like their forefathers, would like
to settle abroad. As a result of many years of depression the means a t
the disposal of Swiss nationals wishing to emigrate are now exhausted

— 131 —
in many cases, but the desire to emigrate is still there. In order
to assist such persons, the Federal authorities introduced measures,
in June 1936, to provide them with the means required for settlement
abroad. An institution was set up to supervise and direct emigration,
which is governed by a committee including federal and cantonal
representatives. This institution, of a public utility character,
carries out the selection of candidates and grants assistance only to
persons suitable for agricultural work and who are of the physical
and moral standard required. While leaving the emigrants free to
choose their destination, the institution guides them with advice and
takes the necessary steps to ensure that the undertaking chosen by
them offers adequate guarantees of success. The institution also
seeks openings in countries where climatic and other conditions are
suitable for Swiss nationals and brings such openings to the notice
of persons on its books.
Between September 1936 and September 1937 more than 200 families including over 1,000 persons have thus been able to emigrate
with the financial assistance of the authorities. The sum spent on
behalf of these families by the Swiss public authorities (federal, cantonal, and communal) amounts to over 1 million Swiss francs, the
average cost per family varying between 6,248 and 7,866 francs.
The countries of destination of these families were mainly Argentina,
Brazil, Canada, Paraguay, Peru, and Ecuador.
At present the Swiss Parliament has before it a message and a
draft Bill providing for a further credit of le million francs, to be
used to continue the scheme undertaken a little over a year ago, which
may already be said to have given good results.
The action taken with the help of the public authorities is considered somewhat of an experiment, the success of which depends to
a large extent on the precautions taken and the methods of selection
adopted.
The Parliamentary committees called upon to examine the new
demand for credit submitted to Parliament are in favour of the
continuation of the work undertaken, so that it may be expected that
Parliament will vote the money required.
Subsidies to emigrant families are as a rule given in the form of a
loan without interest. A contract is concluded with each beneficiary
which provides for the redemption of the loan between the fifth and
sixth years. The amounts repaid in this way may be used to assist
other would-be emigrants.
As you see, Switzerland has tried an experiment which seems to
give good results. As stated by the honourable delegate of the
Argentine Republic, Switzerland has come to an arrangement concerning emigration with his country. There can be no doubt that this
arrangement will facilitate the measures which have been in operation
for some time.
The Conference in which I have the honour to take part will, I
feel sure, result in progress in the complicated question of immigration, which is of great interest to most countries, including Switzerland.

B.—REPORT OF THE CONFERENCE

INTRODUCTION

The International Conference of Experts on Technical and
Financial Co-operation with regard to Migration for Settlement
was held at the International Labour Office from 28 February to
7 March 1938.
The following countries were represented at the Conference :
Argentina, Austria, Bolivia, Brazil, Chile, Colombia, Czechoslovakia, Dominican Republic, Ecuador, Hungary, Japan, Netherlands, Feru, Poland, Switzerland, Uruguay, Venezuela, Yugo
slavia. The Governing Body of the International Labour Office
was represented by one member of the Government group, one
member of the employers' group, and one member of the workers'
group. The Economic Committee of the League of Nations was
also represented by one of its members. The list of the representatives present at the Conference is given in Appendix I
to this report.
The discussions were also attended by the following officials
of the League of Nations Secretariat : Mr. Stoppani, Director of
the Economic Relations Section; Mr. Beaumont, member of the
same Section; and Mr. Rasminski, member of the Financial
Section.
The Conference had before it a report dealing with the problems
of technical and financial co-operation with regard to migration
for settlement, which had been prepared by the International
Labour Office, together with a proposed plan for the discussion
of the particular aspects of the question on the agenda.
In opening the Conference, the Director of the International
Labour Office recalled that it had been convened as a result of
a decision taken by the Governing Body in pursuance of a resolution voted by the Conference of American States Members of
the International Labour Organisation at Santiago, Chile, in
January 1936. He emphasised the very widespread interest

— 133 —
taken in recent times in questions of migration, particularly by
the Assembly of the League of Nations and the Peace Conference
of Buenos Aires. The technical study of the problem which the
Conference was called upon to carry out was of considerable
importance on account of the encouragement which the solutions
proposed might give to a revival of migration for settlement.
On the proposal of the representative of Argentina, who was
supported by a number of other members, the Conference elected
as its President Mr. R. A. Verwey (Director of the Unemployment
Insurance and Employment Exchange Service), Netherlands
representative, and as its reporters Mr. D. Pinheiro Machado
(Director of the Federal Population Service), Brazilian representative, and His Excellency W. Mazurkiewicz (former Polish
Minister in Argentina), Polish representative.
The President reminded the Conference of the importance
which its decisions might have, both from the point of view
of settlers and from that of the world as a whole.
The Conference decided to begin its proceedings with a general
discussion, and then to study the subject before it point by point.

GENERAL DISCUSSION
The general discussion revealed the great economic and social
importance of migration for settlement, both for countries of
emigration and immigration and for the world as a whole. For
emigration countries, such migration tends to mitigate the effects
of agricultural over-population and hence to facilitate the raising
of the standard of living. For immigration countries, it contributes in a high degree to the development of their vast economic
resources. For the world as a whole it has the advantage, by
bringing labour and land into closer touch, of reducing that
state of economic disequilibrium which is retarding or jeopardising social progress and well-being in all countries.
The almost entire cessation of the currents of migration for
settlement during the long years of the economic depression had
consequences which were unfortunate in every way, and which
even to-day weigh heavily on all countries, and particularly on
emigration countries.
The general discussion served to show, however, that conditions
have now become more favourable to a revival of migration

— 134 —
movements of this kind, and that certain immigration countries
are realising that their economic development can be stimulated
by encouraging larger numbers of agricultural immigrants to
come and settle on the land. Both emigration and immigration
States, however, consider that a revival of migration for settlement can be brought about only if the conditions are such as to
afford migrants adequate protection and a reasonable prospect
of success. This is impossible without certain technical and
financial measures, taken either by the emigration country or
by the immigration country, or by both acting in concert. Strong
emphasis was laid on the value of bilateral agreements as a basis
for such action.
The fundamental principle on which this common action
should be founded is, of course, the full respect for the sovereign
rights of the emigration and immigration States in regulating
migration currents according to their own interests. But there
is evidence to day that both groups are agreed in recognising
the need for planned action.
The discussion also showed that the development of migration
for settlement on a large scale is often prevented by lack of
sufficient capital to cover the cost of migration, and also, in
some countries, by the difficulty of transferring migrants' assets
abroad. Only an international scheme for financing settlement
which would go beyond the scope of bilateral co-operation between emigration and immigration countries can provide a solution
for these problems. Detailed proposals on the subject were made
by the Polish representative, and the representative of Ecuador
submitted a plan for the establishment of an International
Migration Committee.
The general discussion gave evidence of the great interest
taken by all the representatives in the subject before the Conference, and of their conviction that the conclusions that could be
reached as to the means of overcoming the technical and financial
difficulties would contribute in a large measure to the revival of
migration for settlement, not only between the countries represented but also between others not represented at the Conference.
It was in this conviction that the Conference proceeded to discuss
the several problems enunciated in the draft plan submitted by
the Office.

— 135 —

DISCUSSION OF PARTICULAR PROBLEMS
Before discussing the particular questions, the Conference, on
the suggestion of the Government representative of the Governing
Body, instructed a committee composed of the President, the
two reporters, and the representatives of the three groups of the
Governing Body, to examine, with the assistance of the International Labour Office, the draft plan which had been submitted
to it, and to make any modifications that seemed appropriate.
The plan, as amended by the reports in accordance with the
directions given by the committee, is reproduced in Appendix II.
It contains four sub-divisions concerning respectively :
(1) technical problems;
(2) financial problems;
(3) organisations for technical and financial co-operation;
(4) the action of the International Labour Office.
Having decided to adopt this plan as the basis of discussion,
the Conference proceeded to examine it point by point.
Part I : Technical Problems
Migration for settlement is clearly distinct from other kinds
of migration not only by its special purpose, but also by the
organisation which it requires—and without which, indeed, it is
impracticable. If legal obstacles are ignored, all that is needed
to enable the worker to emigrate is the assurance, or the wellgrounded hope, that he will find work at which he can earn his
living in the country to which he goes. But for a group of settlers
it is as a general rule impossible to leave home unless there is in
the immigration country an official or private body to receive
them and establish them on the land. This institution must
have chosen and prepared the land to be settled, drawn up a
settlement scheme, and attended to all the questions involved—
the supply of capital, the parcelling out of the land, the organisation of production and of finance, the terms to be offered to the
settlers, etc.
Besides this work of organisation by the settlement bodies of
the immigration countries, reliable information must be available
in those quarters from which the desired settlers can be expected
to be drawn. The recruiting and selection of suitable candidates

— 136 —
in these quarters must be organised, and steps taken to ensure
t h a t those chosen do, in fact, leave their home countries a t t h e
time fixed. I t is hardly necessary to go into further details in
order to show t h e primordial importance of organisation in this
particular form of international migration commonly known as
" migration for settlement ".
C H A P T E R I : INFORMATION AND ASSISTANCE
FOR SETTLERS

§ 1.—Exchange of Information on Openings for
by Immigrants

Settlement

All action t a k e n in connection with migration should be based
upon information as reliable and complete as possible. The
supply of such information requires the collaboration of emigration and immigration countries, a n d the Conference accordingly decided t o define the character of the information t h a t
should, in its opinion, be collected, kept up to date, and
exchanged b y emigration and immigration States, the former
giving information on the types of persons wishing to settle
abroad, and the latter on the possibilities of settlement on their
territory.
It was considered t h a t countries desiring to develop movements
of settlers from one to t h e other might well organise a regular
exchange of information. The Conference also held t h a t a clearing
system would be desirable under which all information of this kind
would be sent in regularly to the International Labour Office.
Passing t o t h e discussion of Point 1 of the plan, the Conference
adopted t h e t e x t as it stood, with two amendments proposed by
t h e Netherlands representative. The first consisted in t h e
insertion of t h e following new item after paragraph (1) (d) :
" The types of settlers desired."
This amendment was approved without opposition.
The other proposal was for t h e insertion of the following new
item after paragraph (1) (h) :
" Facilities for the settler to send savings to his country of origin."
A discussion arose, in connection with this proposal, as to the
importance t o t h e settler of being able t o transfer his savings
to his country of origin. I t was considered t h a t t h e impossi-

— 137 —
bility of making such a transfer would deter many from emigrating, since it frequently happens t h a t an emigrant has obligations towards persons in his own country, particularly members
of his family.
The Chilean representative observed t h a t immigration countries,
like almost all the other countries of the world a t the present
time, had difficulty—sometimes almost insurmountable difficulty—in effecting transfers of funds, and t h a t the idea of making
exceptions for settlers, either in national legislation or in national
practice, was Utopian. H e added, however, t h a t the adoption
of the amendment under discussion would a t least result in the
collection of information on the subject.
After an exchange of views between the Chilean representative,
the employers' and workers' representatives of the Governing
Body, and the Hungarian, Venezuelan, Argentine and Austrian
representatives, in which it was emphasised t h a t although t h e
question was an important one it did not affect t h e principle of
the amendment proposed, the amendment was adopted in t h e
following form :
" Facilities accorded to the settler for the fulfilment of any obligations
that he may have in his country of origin."
I n adopting this amendment, the Conference expressed the
wish t h a t its decision should be interpreted not as implying any
suggestion on its part regarding the monetary policy of t h e
States concerned, b u t simply as indicating t h e importance, from
the point of view of migration for settlement, of the collection
and exchange of information on measures taken in this field.
The Conference then adopted, in the same sense, an amendment proposed by the Chilean representative, consisting in t h e
addition of t h e following item (d) t o paragraph (2) :
" (d) Facilities accorded to the settler for the fulfilment of any obligations
that he may have in the country of immigration."
Two proposals were submitted with regard t o paragraph (2) (a) ;
the first, made by the Netherlands representative, who
stated t h a t its purpose was to meet the case of owners of small
farms in emigration countries and heads of families migrating
before their wives and children, was to insert after t h e word
" families " the words :
" or of unmarried or unattached persons."

— 138 —
The Conference adopted this amendment, and also a proposal
of the representative of Argentina to insert, after the word
" qualifications " in t h e same item the words :
" the kind of farming, social environment and conditions of life to which
they are accustomed,"
A discussion followed on t h e proposal of the Hungarian representative to add a t the end of paragraph (4) t h e words :
" and published, as far as possible, at regular intervals."
In the course of this discussion, the Brazilian representative,
without formulating a concrete proposal, expressed the opinion
that no such satisfactory system for t h e publication and diffusion
of information as t h a t mentioned in t h e paragraph under discussion (paragraph (4)) yet existed, and t h a t it was important t h a t
steps should be t a k e n t o publish—as Brazil and certain other
immigration States already did- - information drawn from all
available sources regarding t h e facilities available to settlers.
The speaker considered t h a t countries desiring to receive settlers
should publish, in t h e languages of t h e countries able t o furnish
them, all general information likely t o be of use to them, and
particularly information of t h e kind mentioned in paragraph (1)
(a), (b), (c) a n d (j) of Point 1. The Conference finally decided
to adopt t h e proposal of t h e Hungarian representative, while
unanimously welcoming t h e suggestions of the representative
of Brazil, which were regarded as supplementing it.
On Point 1 as a whole, the Conference adopted the following
conclusions :
1. (1) I t would be desirable for the Governments of immigration
countries wishing to develop migration for settlement to undertake
the regular collection of as full information as possible on :
(a) the general conditions of admission of immigrants proposing
to settle on the land;
(b) the facilities granted to immigrant settlers, e.g. as regards
transport, customs duties, maintenance during the different
stages of the journey and on arrival, etc.;
(c) the provisions of land law or agrarian law which affect
settlement;
(d) the public and private land which is available for settlement
and on which production is possible in conditions likely to
ensure the settler's success ;
(e) the types of settlers desired;

— 139 —
(f)
(g)

(h)

(i)
(j)
(k)
(1)

the conditions under which public or private land can be
acquired by individual immigrants or by settlement organisations intending to place settlers upon it;
the existing official or private settlement organisations which
are prepared not only to sell land on the deferred payment
system but also to prepare it, establish settlers upon it, and
assist them technically and financially until they become independent; and the conditions offered to settlers by these organisations ;
the location of the land suitable for settlement; its distance from
means of communication; transport organisation and costs; the
situation as regards the marketing of the settlers' products;
the kinds of farming for which the district is suitable; the price
of land; the cost of establishment; the amount of working
capital required ; the approximate net yield of the land ; general
conditions of life in the district;
national or local taxes payable by the settler or the settlement
organisation; irrigation dues, etc.;
facilities accorded to the settler for the fulfilment of any obligations that he may have in his country of origin;
the general development works which have already been carried
out in the district or which the public authorities could undertake in connection with a settlement scheme;
any other data for arriving at a better idea of the settler's
chances of success.

(2) It would be desirable for the Governments of emigration countries wishing to develop migration for settlement to undertake the
regular collection of as full information as possible on :
(a) the number of families, or of unmarried or unattached persons,
desiring to emigrate as settlers, their technical qualifications,
the kind of farming, social environment and conditions of life
to which they are accustomed, and the extent to which they are
able to contribute to the cost of their establishment;
(b) the legislative and administrative provisions concerning the
emigration of settlers and the regulations regarding recruiting
and the activities of settlement organisations, national and
foreign;
(c) the measures in force intended to facilitate migration for
settlement;
(d) facilities accorded to the settler for the fulfilment of any obligations that he may have in the country of immigration.
(3) I t would be desirable for any emigration and any immigration
country wishing to develop migration from the former for settlement
in the latter to organise the regular and rapid exchange of the information mentioned in paragraphs (1) and (2) above.
(4) It would be desirable for the information mentioned in paragraphs (1) and (2) to be communicated to the International Labour
Office, in order that it may be placed or kept at the disposal of the
Governments concerned and published, as far as possible, at regular
intervals.

— 140 —
§ 2.—Establishment in the Countries concerned of Services
to provide Information and Assistance for Settlers
This point refers t o the organisation in t h e emigration and
immigration countries of free services to provide settlers with the
kinds of information enumerated in Point 1 and t o assist t h e m
in t h e choice of their land.
The addition, at the end of Point 2, of a paragraph worded as
follows, was proposed by t h e Netherlands representative :
" Where necessary, appointment of emigration attachés or counsellors of
the settlers' country of origin in the country of immigration."
This amendment, proposed with a view t o supplementing the
resolutions already adopted regarding official and semi-official
information services and bilateral co-operation between States
in this field, a n d also with a view to removing serious difficulties
from t h e settler's way, was adopted by t h e Conference.
At the close of the discussion on Point 2, the following conclusions were adopted :
2. (1) I t would be desirable for an official or semi-official service
to be set up in the emigration and the immigration country, to be
responsible for :
(a) furnishing the information mentioned in Point 1, paragraphs (1)
and (2), and in particular that regarding the qualifications and
capital required, the possibilities of settlement, and living
conditions, to persons desiring to emigrate and settle;
(b) assisting prospective settlers in the choice of land, regard being
had to its quality and price and to the additional financial
obligations involved in its development.
(2) It would be desirable to establish permanent co-operation
between these services in the emigration and the immigration country.
(3) Consideration might usefully be given to the appointment, where
they are not already appointed, of emigration attachés or counsellors
of the emigration country attached to its diplomatic and consular
representatives in the immigration country.
CHAPTER I I : SETTLEMENT ORGANISATIONS AND SCHEMES

As has already been stated, migration for settlement is possible,
as a rule, only if an institution exists which is capable of organising
the settlement of the migrants on t h e land. The report prepared
by t h e Office showed t h a t no institutions of this kind exist in
some countries, while in others, although they exist, they are

— 141 —
prevented by t h e limitations of their financial resources or their
field of action from bringing about a n y considerable increase in
t h e number of immigrant settlers. Nor is private initiative
always capable—for economic reasons as well as for reasons
connected with the special nature of settlement activities—of
providing the required organisation. And commercial settlement companies, when their activities are not controlled in some
measure b y the community, do not always offer the minimum
of security which is indispensable, particularly in t h e settlement
of immigrants arriving directly from a foreign country without
any knowledge of their new surroundings. The problem which
presents itself here, then, is how t o develop an organisation which
will have such technical and financial equipment, a n d provide
the settler with such guarantees, t h a t it can be entrusted with the
delicate task of transferring the emigrants to their country of
destination and settling them there under conditions which offer
reasonable chances of success.
This is the purpose of Points 3 and 4 of Chapter I I of t h e plan
of discussion.
§ 3.—Official

Settlement

Organisations

On the proposal of the Venezuelan representative, the Conference discussed the question of the various principles on which
official settlement and immigration institutions m a y be organised.
The representatives of Argentina, Brazil, Chile and Uruguay
described the organisation of these institutions in their respective
countries. The discussion showed t h a t the form of t h e organisation depends in a large measure on t h e special conditions prevailing in each country, and t h a t the experience of some States
was still too recent to permit of final conclusions. One principle,
however, emerged clearly : t h a t the settlement organisation
should possess capital of its own sufficient t o enable it t o develop
its settlement programme in a normal way; in other words, it
is important t h a t settlement work, which is a long-term activity,
should be independent, as far as possible, of the vicissitudes of
annual budgets.
At the end of the discussion, the Venezuelan representative
reserved the right to make a proposal in connection with P a r t IV
of the plan of discussion, which dealt with the future action of
t h e Office, to the effect t h a t the Office should undertake a study

— 142 —
of the question of the organisation of settlement and immigration
institutions.
Point 3 of t h e plan was adopted b y t h e Conference with two
amendments.
On the proposal of the Venezuelan representative, paragraph (1)
was redrafted, a n d adopted in the following form :
" Development, and in immigration countries in which they do not
already exist, creation of official technical, financial and other organisations responsible for immigration and settlement."
On the proposal of t h e Chilean representative the following
new paragraph was inserted after paragraph (2) :
" Stipulation, as one of the essential conditions to be fulfilled before
a settlement organisation can begin to carry out its schemes, that the land
intended for immigrants shall not be in litigation, mortgaged, or subject
to any other charge, or that the existence of a regular contract between the
mortgagor and the mortgagee shall be proved, so that the land in question
may be transferred to the settler free of all charges."
As the Chilean representative explained, the purpose of this
amendment was t o give t h e settler increased security, for if t h e
title deeds of t h e land sold to him are not in order, he may find
his right to it contested. In this connection, t h e Brazilian representative communicated to the Conference the text of a Decree
recently issued b y his Government; this Decree stipulates t h a t
the title deeds of land marked out for sale in plots on t h e deferred
payment system by private settlement companies must be
examined before t h e sale is effected, and places the activities of
private settlement companies under supervision with a view to
protecting t h e settler against abuses.
The following conclusions were adopted concerning Point 3 :
3. (1) The Conference suggests that it would be desirable to consider
the development, and, in immigration countries in which they do not
already exist, the creation, of official technical, financial and other
organisations responsible for immigration and settlement.
(2) If occasion arises, private organisations should also be developed
and encouraged, if they furnish a guarantee, either through their
rules, or through the participation in them of the State or of public
financial institutions, or through the control exercised over them by
the authorities, t h a t the settler's interests will not be sacrificed to
commercial ends.
(3) One of the essential conditions to be fulfilled before a settlement
organisation can begin to carry out its schemes should be that the
land intended for immigrants shall not be in litigation, mortgaged,
or subject to any other charge, or that the existence of a regular

— 143 —
contract between the mortgagor and the mortgagee shall be proved,
so that the land in question may be transferred to the settler free of
all charges.
§ 4.—Settlement

Schemes

For the same purpose of affording increased security for the
settler, Point 4 of the plan envisaged the preparation of schemes
b y the public authorities, or a t least official approval of schemes
prepared privately.
Certain amendments were made to this Point. I n order to
make the meaning of paragraph (1) more precise t h e Argentine
representative proposed and the Conference agreed to insert
after the words " public authorities " the words " of the immigration country ".
The Brazilian representative proposed t h e insertion of t h e
following new item after item (c) of paragraph (1) :
" The period of employment that the immigrant might serve on a farm
in the immigration country before setting up as an independent farmer,
in order to familiarise himself with the agricultural practices, language,
customs, climate, food, and other aspects of the country in which he intends
to settle.
" Precedence for the wage claims of immigrants so employed over the
employer's other obligations, the produce of the farm serving as security.
" Adoption of a summary judicial procedure to enable the immigrant
to recover his wages."
The Brazilian representative defended this amendment by
showing the value to the prospective settler of a preliminary
t e r m of service on a farm in the immigration country. A period
of probation of this kind not only enables him to accustom
himself to the conditions of work, the climate and t h e life of t h e
new country, b u t also gives him time in which to choose t h e land
on which he is finally to establish himself as an independent
farmer. Ignorant as he is of the language and of other conditions,
however, he should be protected b y special measures during this
period, particularly as regards his wages. The Brazilian representative called attention to t h e fact t h a t his amendment was
in conformity with the system of legal assistance t o immigrants
which h a d long been in successful operation in Brazil. The
Venezuelan representative proposed t h a t the t e x t finally adopted
by the Conference should also envisage the possibility of a course
of training for settlers, in special institutions.
The Polish representative urged t h a t settlement schemes should
be sufficiently stable to enable t h e settler to prepare himself

-

144

with reasonable confidence that he will be able to carry out his
plans, and the emigration organisations to plan departures
systematically.
The Argentine representative proposed, and the Conference
adopted, an amendment to paragraph (2) : the substitution of
the word " execution" for the word " preparation ". The purpose
of this amendment was to take account of the fact that the
emigration State can hardly intervene in the preparation of the
official schemes of the immigration State although bilateral
co-operation may play a useful part in the application of such
schemes.
On Point 4 the following conclusions were adopted :
4. (1) Before .any group settlement by immigrants is undertaken,
it would be desirable for the public authorities of the immigration
country to prepare, or approve, detailed schemes laying down, inter
alia, conditions regarding :
(a) the preparation and equipment of the land;
(b) the organisation of production and marketing;
. (c) the preparation, reception, and establishment of the settlers
and their families;
(d) the period of employment that the immigrant might serve on
a farm in the immigration country before setting up as an independent farmer, in order to familiarise himself with the agri-cultural practices, language, customs, climate, food and other
aspects of the country in which he intends to settle;
The wage claims of immigrants so employed should take
precedence over the employer's other obligations and the produce of the farm should serve as security for their settlement;
Summary judicial procedure should be available to the
immigrant to enable him to recover his wages.
(e) the financing of the expenses to be borne by the State, the
settlement organisation, and the individual settler respectively;
(f) the control to be exercised by the State, and the assistance to
be rendered by the State in the execution of the scheme.
(2) The execution of certain parts of these schemes would be facilitated by co-operation between the countries concerned.

§ 5.-Administrative and Fiscal Facilities
The suggestions contained in Point 5 were adopted by the
Conference, which reversed the order of paragraphs (4) and (5)
and replaced the words" all taxes" inthe latter by the words

" certaip, taxes ".
At the request of -the Polish representative paragraph (2)
was made to cover also transit visas.

-145 -

The Conference adopted the following conclusions on Point 5 :
5. The Conference recommends the consideration of the following
measures in the preparation and execution of settlement schemes:
(1) Free performance of recruiting and selection operations, and
free vocational and general training of prospective settlers;
.
. (2) Exemption of settlers and their families from administrative
dues connected with the formalities of departure, and from
consular fees (including transit visas);
(3) Exemption of the effects of settlers and their families f~m
customs duties;
(4) Temporary exemption of settlers and their families from certain
taxes, or temporary reduction of such. taxes;
(5) Exemption of settlementorganisatioJls trom certain taxes 'and
. dues, or redu~tioD.of.~~~'~:
..
(aJmx.()~t-r~,~"~~ta1;e;
,
(h) landtax. .' .. , .....
,
~It i1rinancial

Problems

I. ~ODS OF FINANCING ,SETTLEMENT OPERATIONS
(transport, acquisition of land, equipment of the settlement
and of settlers, maintenance of settlers)

.CHA:ll'J.'Zl{

The measures mentioned in Part I above-which refer to the
collection and exchange of exact information on the possibilities
of migration for settlement, the furnishing of assistance in the
form of information and advice to emigrants desiring to establish
themselves as settlers in foreign countries, the development of
settlement organisations able to offer the necessary guarantees,
and the careful planning of settlement schemes-are likely to
contribute greatly to the success of migration for settlement.
By so doing they may also help, to some extent, to overcome the
financial-difficulties. For both the settlement organisation and
the settler- himself will find capital more easily for an enterprise
whose' chances of success are increased by careful technical
preparation.
The financing of settlement costs-transport, acquisition of
land, equipment of the settlement and maintenance and equipment of settlers-eonstitutes a problem whose solution is essential
to the development of migration for settlement. In many cases
a .settlement scheme involves development work which is too
heavy to be undertaken by the settlement organisation, and too
costly for the individual settler with his limited labour power
10

— 146 —
and capacity, since in the last analysis it is he who will have t o
meet any expenses incurred b y a third p a r t y on account of his
settlement.
The solution of this financial problem requires a study on t h e
one h a n d of t h e means whereby the expenses of the settlement
organisation or of t h e individual settler may be reduced, and on
the other, of t h e facilities for raising in the emigration or immigration country or in a third country t h e capital needed.
§ 6.—Measures for the Reduction of the Settlers'
or the Settlement Organisation's Costs
Among t h e measures to facilitate the financing of settlement
the first t o be considered are those intended t o reduce t h e expenses
of settlers a n d settlement organisations; these measures are
enumerated in Point 6 of the plan of discussion.
As regards transport costs, which are at present very high and
constitute an important part of the total cost of oversea migration
for settlement, the Polish representative remarked t h a t contributions b y t h e immigration country went a long way towards
solving this problem. He drew attention to the economic value
of settlement t o immigration countries, which should, for this
reason, assume a p a r t of t h e expenses involved. The Chilean
representative, on the other hand, observed t h a t the help that
migration for settlement could render emigration countries, b y
relieving their employment market, was a reason for these countries to contribute t o its cost.
This question of t h e relation between unemployment and
emigration for settlement was discussed in greater detail in
connection with a proposal b y the Austrian representative t o
add the following new paragraph to Point 6 of the plan :
" Study of the possibility of using the unemployment benefit paid to
the future settler in his country of origin for financing his settlement."
The Austrian representative, in explaining the interest of such
a study, suggested t h a t the system might be applied not only
t o certain categories of unemployed industrial workers who still
had close ties with agriculture, b u t also to unemployed agricultural workers. The representative of the employers' group of
the Governing Body asked in more general terms how far unemployed workers were suitable for settlement, and the Chilean
representative called for a more detailed study of this question,

— 147 —
adding t h a t urban unemployment was aggravated by t h e influx
of agricultural workers into the towns, and t h a t t o enable these
workers t o emigrate and t o settle abroad would certainly help
to solve the unemployment problem.
The Polish representative pointed out t h a t this question hardly
arose in his country, where only small farmers were taken into
consideration for oversea settlement.
The Brazilian representative expressed t h e view t h a t it was
very difficult for industrial workers t o succeed as settlers, a n d t h a t
those wishing to emigrate should be given t h e necessary training
in their countries of origin before departure.
The representative of the workers' group of the Governing
Body pointed out t h a t a migration movement for settlement
might lead to the emigration of other categories of workers, a n d
maintained t h a t there appeared t o be considerable openings in
some immigration countries for skilled workers.
The discussion as a whole brought out t h e fact t h a t there
exists to-day a certain connection between unemployment and
migration for settlement. I t showed further, as is confirmed b y
the experience of certain countries, t h a t unemployed industrial
workers can find a place in settlement schemes provided t h a t care
is used and proper training provided.
Having adopted the amendment proposed by the Austrian
representative, and having heard the observations and particulars supplied by other representatives on the measures envisaged
in the several paragraphs of Point 6, t h e Conference adopted t h e
following conclusions :
6. The Conference considers that countries desiring to promote
migration for settlement might examine the following possibilities :
(1) (a) Free transport of the settler and his family on the territories
of the emigration and the immigration country;
(b) Total or partial payment by the State of the cost of the sea
voyage;
(2) Undertaking at the expense (wholly or in part) of the State, of
the general preparation and equipment of the land intended for
settlement;
(3) Supply of public land by the State, free or at a reduced price;
(4) Supply of tools and equipment to settlers, free or at a reduced
price;
(5) Contribution of the State to the cost of maintaining settlers and
their families at the various stages of their journey and during
the initial period of their establishment;

— 148 —
(6) Granting of certain State subsidies to settlement organisations
or to individual settlers; the Conference considers that it would
be desirable to study more thoroughly the possibility of devoting
unemployment benefit to such subsidies.
§ 7.—Credit Facilities in the Emigration or the Immigration
Country
Although measures of the kind envisaged in Point 6 may
succeed in reducing the total cost of settlement to a certain
extent, account being taken of the settler's ability to pay certain
expenses himself, credit will nevertheless be needed for several
purposes. It may prove difficult to obtain credit, or to obtain
loans on a sufficiently long term to make it possible to grant the
settler terms of repayment adapted to his capacity. This
difficulty can be overcome, in many cases, through the intervention of the State or States concerned.
The problem of financing settlement, especially that of financing it through credit, was stated in all its details, and illustrated
by means of statistics, by the Polish representative, who described
the credit facilities which might contribute, together with State
subsidies and the financial participation of the settler, to the
financing of settlement costs (transport, acquisition of land,
equipment of the settlement, maintenance and equipment of
settlers). He showed that the emigrants of some countries
generally have not sufficient capital to cover the whole cost of
their transport, but that the settlement scheme itself creates a
basis for credit which ought to make it possible to finance at
least a part of the transport, as well as the establishment of the
settler, by means of loans, in cases in which the expenses involved
have not already been considerably reduced as a result of subsidies
by the State or States concerned.
As regards the credit facilities which might be granted by
emigration and immigration countries, the Chilean representative
observed that the measures mentioned in Point 7 should specifically include transport loans, either to the settler or to the
settlement organisation. He added that the Conference should
make a general reference in its conclusions to direct loans to
individual settlers. The Venezuelan representative said in this
connection that in his country the Government was empowered
to grant such loans.

— 149 —
The following conclusions were adopted on Point 7 :
7. Countries desiring to develop migration for settlement might
usefully examine the following possibilities in connection with the
provision of credit facilities :
(1) In order to assist emigrants to realise their property, long-term
mortgage loans might be granted to buyers by financial institutions
in the emigration countries;
(2) In order to enable the settler to establish himself on the land, a
direct loan might be granted to him;
(3) In order to meet transport costs, loans might be made to the
settler or the settlement organisation;
(4) In order to make it easier for the settlement organisation to
obtain long, medium, or short-term loans :
(a) the State might assist it in placing its issues on the market;
(b) the State might guarantee the shares it issues or the loans
it contracts;
(c) loans might be made to it directly by official financial
institutions;
(5) In order to reduce the financial burdens of the settlement
organisation :
(a) a financial institution might take over the balance of the
organisation's mortgage loan to the settlers as soon as the
latter has repaid enough of his debt to make such an operation possible;
(b) short or medium-term loans might be granted to settlers
by agricultural credit institutions acting in agreement with
the settlement organisation.
§ 8.—Co-operation between the Governments concerned
for the Purpose of Financing
Settlement
The measures mentioned in Point 7 above may be adopted
unilaterally, but they could also be agreed on as p a r t of an international agreement. On this question the Conference approved
paragraphs (1) and (2) of Point 8 of the plan of discussion without
amendment, and adopted t h e following conclusions :
8. It would be desirable for the Governments concerned to co-operate for the purpose of :
(1) furnishing settlers with the credit needed in addition to their
own resources, and guaranteeing the reimbursement of the loans ;
(2) placing the bonds and shares issued in the immigration country
on the market of the emigration country, and guaranteeing their
reimbursement.

— 150 —
§ 9.—Financial Participation

of Third

Parties

The discussion of t h e financial problem raised t h e question of
possible outside financial participation in settlement activities
in case neither t h e emigration nor t h e immigration country is in
a position t o supply t h e capital required by t h e settlement organisation or the settler. The Polish representative observed t h a t
such loans might be made, through t h e medium of t h e State
concerned, either t o a national credit institution or directly to
t h e settlement organisation, for example, b y means of issues on
the market of a third country or t h e financial participation of
third parties interested in t h e promotion of land settlement.
H e also drew attention to the question of guarantees, and pointed
t o t h e possibility of guaranteeing t h e loans in question on the
security of the settler's property in his country of origin, of his
holding in t h e country of settlement, of the settlement organisation, or of t h e national credit institutions whose shares or
debentures sometimes enjoy t h e additional guarantee of the State.
A discussion arose here on t h e question whether t h e composition of t h e Conference was such as to enable it t o deal effectively
with t h e technical financial problems involved in t h e question
of raising capital in countries other t h a n the emigration and immigration countries. The representative of the employers' group
of t h e Governing Body was of t h e opinion t h a t these problems
could n o t be examined properly without t h e assistance of financial
experts from these other countries. This opinion was shared b y
t h e representatives of Poland and t h e Economic Committee of
the League of Nations.
The Conference finally adopted t h e same point of view, and
decided t o instruct its Officers t o examine, in consultation with
t h e representative of t h e Economic Committee and t h e Directors
of the Economic a n d Financial Sections of the Secretariat of the
League of Nations, t h e question of t h e procedure t o be followed
in the study of P o i n t 9, which is as follows :
9. Financial participation of third parties :
(1) In cases in which an emigrant's resources are less than the sum
required for his settlement, and neither the emigration nor the
immigration country has the capital necessary to make up
the sum by means of loans : action by the Governments concerned or other measures with a view to obtaining the necessary credits on the international money market; the problem
of guarantees;

— 151 —
(2) Measures likely to relieve settlement organisations or to develop
their financial resources by means of outside capital :
(a) Action by the Governments concerned with a view to placing
the issues of settlement organisations on the capital market
of a third country;
(b) Financial participation of third parties interested in the
promotion of land settlement, e.g. shipping companies,
railway companies, manufacturers;
(c) Taking over by a financial institution of a third country of
the balance of the settlement organisation's mortgage loan
to the settler as soon as the latter has repaid enough of his
debt to make such an operation possible.
CHAPTER II : PROBLEM or TRANSFERS
§ 10.—Co-operation between the Governments concerned with a View
to facilitating the Transfer of Emigrants'' Assets
The problem of transferring the assets of emigrants, which is
part of the general financial problem of land settlement, arises
chiefly in certain emigration countries which a t present have
difficulty in obtaining the necessary foreign exchange. The
Polish representative emphasised t h a t co-operation between the
Governments concerned with a view to the promotion of export
trade from t h e emigration t o t h e immigration country might
contribute to the solution of the problem.
After some discussion the Conference adopted t h e following
conclusions :
10. The Conference draws attention to the desirability of co-operation between the Governments concerned with a view to examining
the possibility of facilitating the transfer of emigrants' assets by means
of exports of goods, including products needed for the preparation of
the settlement by the settlement organisation, and tools and equipment.
§ 11.—Temporary Loans for Transfer

Purposes

I n cases in which the transfer problem cannot be solved b y
unilateral action b y t h e country concerned or bilateral action b y
the emigration and t h e immigration country together, wider
international co-operation may become necessary. The Polish
representative pointed out t h a t an emigration country, in order
to make the transfers required in connection with migration for
settlement, should be able to obtain a temporary loan from a third
country. The representative of t h e Economic Committee of t h e
League of Nations observed t h a t triangular clearing systems

— 152 —
might provide a solution of the difficulty for countries having
such clearing systems.
The Conference finally decided, for the same reasons as those
which p r o m p t e d a similar decision with regard to Point 9, to
refer this point (Point 11) t o its Officers with t h e same instructions
as those given in respect of Point 9.
Point 11 is worded as follows :
11. Raising in a country other than the emigration country of transitional loans to make transfers necessary in connection with land
settlement.
Part III : O r g a n i s a t i o n s for Technical
and Financial Co-operation
§ 12.—Bilateral Technical

Committees

The value of co-operation between emigration and immigration
countries with a view to the better organisation of migration for
settlement was recognised unanimously b y t h e Conference.
Such co-operation, however, involves the question of methods;
this was t h e subject dealt with b y Point 12 of P a r t I I I of the plan
of discussion. The system of joint technical committees mentioned in the plan is in line with the precedents set b y the Argentine Republic in its recent agreements with Switzerland, the
Netherlands a n d Denmark. The Conference agreed t h a t the
model provided by these agreements was a contribution to the
solution of the problem of international technical and financial
co-operation with regard to migration for settlement, and accordingly adopted Point 12 of the plan, while replacing the word
" 'preparation " in paragraph (2) by the word " execution ". In
conclusion, t h e Conference emphasised t h e value to t h e countries
concerned of a development of migration for settlement.
The conclusions adopted in respect of Point 12 were as follows :
12. It would be desirable for countries wishing, in principle, to
co-operate for the promotion of migration from one country for
settlement in the other, to consider the establishment by agreement
of joint technical committees, to be responsible for
(1) the exchange and proper utilisation of the information mentioned
in § 1, paragraphs (1) and (2);
(2) the organisation of the co-operative action required for the
execution of the settlement schemes mentioned in § 4 and the
co-ordination of the measures, taken by the countries concerned,
mentioned in §§ 5, 6 and 7;
(3) the elaboration of the measures of financial co-operation mentioned in § 8.

— 153 —
§ 13.—An International

Credit

Institution

Point 13 of the plan of discussion referred to the " utility of
setting up an international credit institution to facilitate the
financial participation of third parties in the cases considered
in Points 9 and 11 ". The Conference decided to refer this point,
like Points 9 and 11, to its Officers for study of the procedure to
be followed in dealing with it.
The representative of Ecuador made the following proposal
with regard t o Point 13 :
(1) A permanent " International Migration Committee " should be
established, with headquarters at Geneva. It should comprise representatives of all countries desiring to be represented in it. I t should
have wide powers to direct migration movements in accordance with
the wishes of the various countries.
(2) The cost of transport of migrants within the territory of the
countries concerned should be borne by those countries, while the sea
voyage should be financed by the Committee.
(3) For the purpose of financing the sea voyages of settlers, the
Committee should administer a special fund, constituted by means of
contributions by the countries represented equal to 10 per cent, of the
profits on agricultural banking or mortgage operations effected in
those countries.
(4) Each of the countries represented would have to pass legislation
providing for the levying upon the agricultural credit institutions of
the 10 per cent, dues envisaged under (3).
The Conference decided t h a t it was not in a position to examine
this proposal in view of its connection with the problem of the
financial participation of third parties, b u t t h a t it should be
referred, with Points 9, 11 and 13, to t h e Officers.
Part IV : Future Action
Point 14 of the plan of discussion, which concerned future
action, was referred t o the Officers of the Conference, which
examined it together with Points 9, 11 and 13, and the proposals
of the representatives of Ecuador and Venezuela. A draft
resolution submitted to t h e Conference by its Officers gave rise
to a prolonged discussion, to which contributions were m a d e b y
the representatives of Argentina, Bolivia, Brazil, Chile, Ecuador,
Poland, Venezuela, Yugoslavia, t h e Economic Committee and t h e
Economic Relations Section of t h e League of Nations, and t h e
Government and employers' groups of the Governing Body.

— 154

~

This discussion brought out clearly t h a t t h e references made
in the course of t h e session, and recorded in § 9, § 11 and § 13 of
the present Report, t o t h e international measures for the financing
of migration for settlement, were not to be interpreted as defining
the Conference's standpoint but rather as indicating its recognition
of the importance of the problems involved. The Conference
merely wished t o suggest t h a t these problems should be referred
for study and discussion to the Permanent International Committee on Migration for Settlement, whose creation was proposed
in the second p a r t of the draft resolution adopted a t the close
of the session.
After certain amendments had been made, this resolution
was finally adopted in the following form :
The Conference, having carefully studied the technical and financial
obstacles to the development of migration for settlement, and having
adopted the above conclusions containing its suggestions for their
removal,
I
Invites the Governing Body of the International Labour Office :
(1) to consider means of bringing these conclusions to the notice
of the Governments concerned;
(2) to instruct the International Labour Office
(a) to set up and maintain a regular service of information
regarding migration for settlement with a view to facilitating the exchange of such information between the countries concerned;
(b) to continue its technical researches into the organisation of
migration for settlement; and in particular to undertake,
if possible at an early date, a study of the organisation of
the official settlement institutions mentioned in § 3 of this
Report, and of the lessons to be learned from experience as
regards the principles on which these institutions are
organised and worked;
II
Having noted, on the other hand, that the large-scale development
of migration for settlement is hindered in some countries by financial
obstacles whose removal requires, in addition to the measures described
in the conclusions recorded in this Report, international credit operations on the nature of which the Conference feels itself unable to make
a pronouncement,
Expresses the wish that the Governing Body of the International
Labour Office should proceed with the consultations and other steps
necessary for the establishment of a Permanent International Committee on Migration for Settlement, comprising representatives of all
countries which declare themselves interested in the question and

— 155 —
decide to join the Committee, as well as experts on economic, financial
and social questions, etc.; the duties of this Committee would be
(a) to promote the co-ordination of the activities of the emigration
and immigration countries concerned;
(b) to further, particularly with reference to concrete cases, the
study of the international financial problems involved in the
development of migration for settlement and of the suggestions
made to the Conference for their solution, mentioned in § 9,
§ 11, and § 13 of this Report;
(c) to carry out whatever tasks may be assigned to it in connection
with the international credit operations which the countries
directly concerned may consider necessary for the development
of migration for settlement in a manner satisfactory to themselves and the settlers.
Reporters : W. MAZURKIEWICZ,
D. P I N H E I R O MACHADO.

Geneva, 7 March 1938.

C.—CONCLUSIONS AND RESOLUTION
OF THE CONFERENCE
CONCLUSIONS OF THE CONFERENCE
P a r t I : Technical P r o b l e m s
CHAPTER I : INFORMATION AND ASSISTANCE FOR SETTLERS

§ 1.—Exchange of Information on Openings for Settlement
by Immigrants
(1) It would be desirable for the Governments of i m m i gration countries wishing to develop m i g r a t i o n for
settlement to undertake the regular coiiection of as îuil
information a s possible on :
(a) the general conditions of admission of i m m i g r a n t s proposing to settle on the land ;
(b) the facilities granted to i m m i g r a n t settlers, e.g.
as r e g a r d s t r a n s p o r t , customs duties, m a i n t e nance during the different stages of the journey
and on arrival, etc. ;
(c) the provisions of land law or a g r a r i a n law which
affect settlement;
(d) the public and private land which is available
for settlement and on which production is possible in conditions likely to ensure the settler's
success ;
(e) the types of settlers desired ;
(f) the conditions under which public or private land
can be acquired by individual i m m i g r a n t s or by
settlement organisations intending to place settlers upon i t ;
(g) the existing official or private settlement o r g a nisations which are prepared not only to sell land
on t h e deferred payment system but also to
p r e p a r e it, establish settlers upon it, and assist

— 157 —

(h)

(i)
(j)

(k)

(I)

t h e m technically and financially until they become
independent; and the conditions offered to settlers
by these organisations ;
the location of the land suitable for settlement;
its distance from m e a n s of communication;
t r a n s p o r t organisation and costs ; the situation as
r e g a r d s the m a r k e t i n g of the settlers' p r o d u c t s ;
the kinds of farming for which the district is
suitable; the price of land; the cost of establishm e n t ; the amount of working capital r e q u i r e d ;
the approximate net yield of the land; general
conditions of life in the district ;
national or local taxes payable by the settler or
the settlement organisation; irrigation d u e s , etc. ;
facilities accorded to the settler for the fulfilment
of any obligations that he m a y have in his country
of origin;
the general development w o r k s which have
already been carried out in the district or which
the public authorities could undertake in connection with a settlement scheme;
any other data for arriving at a better idea of the
settler's chances of success.

(2) It would be desirable for the Governments of e m i g r a tion countries wishing to develop migration for settlement
to undertake the regular collection of a s full information
a s possible on :
(a) the number of families, or of u n m a r r i e d or
unattached persons, desiring to e m i g r a t e a s
settlers, their technical qualifications, t h e kind
of farming, social environment and conditions
of life to which they a r e accustomed, a n d the
extent to which they are able to contribute to the
cost of their establishment ;
(b) the legislative and administrative provisions
concerning the emigration of settlers a n d the
regulations regarding recruiting and the activities of settlement organisations, national and
foreign ;

— 158 —
(c) the m e a s u r e s in force intended to facilitate m i g r a tion for settlement ;
(d) facilities accorded to the settler for the fulfilment
of any obligations that he may have in the country
of i m m i g r a t i o n .
(3) It would be desirable for any emigration and any
i m m i g r a t i o n country wishing to develop migration from
the former for settlement in the latter to organise the regular and rapid exchange of the information mentioned in
p a r a g r a p h s (1) and (2) above.
(4) It would be desirable for the information mentioned
in p a r a g r a p h s (1) and (2) to be communicated to the
International Labour Office, in order that it may be placed
or kept at the disposal of the Governments concerned and
published, as far a s possible, at regular intervals.
§ 2.—Establishment in the Countries concerned of Services
to provide Information and Assistance for Settlers
(1) It would be desirable for an official or semi-official
service to be set up in the emigration and the i m m i g r a t i o n
country, to be responsible for :
(a) furnishing the information mentioned in Point 1,
p a r a g r a p h s (1) and (2), and in particular that
r e g a r d i n g the qualifications and capital required,
the possibilities of settlement, and living conditions, to persons desiring to emigrate and settle;
(b) assisting prospective settlers in the choice of
land, r e g a r d being had to its quality and price
and to the additional financial obligations involved in its development.
(2) It would be desirable to establish permanent cooperation between these services in the emigration and
the i m m i g r a t i o n country.
(3) Consideration might usefully be given to the appointment, where they a r e not already appointed, of emigration
attachés or counsellors of the emigration country attached
to its diplomatic and consular representatives in the i m m i gration country.

— 159 —
CHAPTER II : SETTLEMENT ORGANISATIONS AND SCHEMES

§ 3.—Official

Settlement Organisation

(1) The Conference suggests that it would be desirable to
consider the development, and in i m m i g r a t i o n countries
in which they do not already exist, the creation, of official,
technical, financial and other organisations responsible
for immigration and settlement.
(2) If occasion arises, private organisations should also
be developed and encouraged, if they furnish a guarantee,
either through their rules, or through the participation
in them of the State or of public financial institutions, or
through the control exercised over t h e m by the authorities,
that the settler's interests will not be sacrificed to c o m m e r cial ends.
(3) One of the essential conditions to be fulfilled before
a settlement organisation can begin to carry out its schemes
should be that the land intended for i m m i g r a n t s shall not
be in litigation, m o r t g a g e d , or subject to any other charge,
or that the existence of a regular contract between the
mortgagor and the mortgagee shall be proved, so that the
land in question m a y be transferred to the settler free of
all charges.
§ 4.—Settlement Schemes
(1) Before any group settlement by i m m i g r a n t s is undertaken, it would be desirable for the public authorities of
the immigration country to prepare, or approve, detailed
schemes laying down, inter alia, conditions regarding :
(a) the preparation and equipment of the land ;
(b) the organisation of production and m a r k e t i n g ;
(c) the preparation, reception, and establishment
of the settlers and their families ;
(d) the period of employment t h a t the i m m i g r a n t
might serve on a farm in the i m m i g r a t i o n country
before setting up as an independent farmer, in
order to familiarise himself with the agricultural
practices, language, customs, climate, food and

— 160 —
other aspects of t h e country in which he intends
to settle;
The wage claims of i m m i g r a n t s so employed
should t a k e precedence over the employer's
other obligations a n d the produce of the farm
should serve a s security for their settlement ;
S u m m a r y judicial procedure should be available
to the i m m i g r a n t to enable h i m to recover his
wages.
(e) the financing of t h e expenses to b e borne by the
State, the settlement organisation, and the individual settler respectively;
(f) the control to be exercised by the State, and the
assistance to be rendered by the State in the
execution of the scheme.
(2) The execution of certain p a r t s of these schemes would
be iaciiiLated by co-operatigli bsív/se« íhe eo«n*ríf.s concerned.
§ 5.—Administrative and Fiscal Facilities
The Conference r e c o m m e n d s the consideration of the
following m e a s u r e s in the preparation and execution of
settlement schemes :
(1) Free performance of recruiting and selection operations, and free vocational and general training of
prospective settlers;
(2) Exemption of settlers and their families from a d m i nistrative dues connected with the formalities of
departure, and from consular fees (including transit
visas);
(3) Exemption of the effects of settlers and their families
from customs d u t i e s ;
(4) T e m p o r a r y exemption of settlers and their families
from certain taxes, o r t e m p o r a r y reduction of such
taxes ;
(5) Exemption of settlement organisations from certain
taxes and dues, or reduction of such taxes and dues :
(a) t a x on t r a n s a c t i o n s in real estate;
(b) land t a x .

— 161 —
P a r t II : Financial P r o b l e m s
CHAPTER I : METHODS OF FINANCING SETTLEMENT
OPERATIONS

(transport, acquisition of land, equipment of the settlement
and of settlers, maintenance of settlers)
§ 6.—Measures for the Reduction of the Settlers' or the Settlement
Organisation's Costs
The Conference considers that countries desiring to
promote migration for settlement m i g h t examine the
following possibilities :
(1) (a) Free transport of the settler and his family on the
territories of the emigration and the i m m i g r a tion country;
(b) Total or partial payment by the State of the cost
of the sea voyage ;
(2) Undertaking at the expense (wholly or in p a r t ) of
the State, of the general preparation and equipment
of the land intended for settlement;
(3) Supply of public land by the State, free or at a reduced
price ;
(4) Supply of tools and equipment to settlers, free or at
a reduced price;
(5) Contribution of the State to the cost of maintaining
settlers and their families at the various stages of
their journey and during the initial period of their
establishment ;
(6) Granting of certain State subsidies to settlement
organisations or to indivual settlers; the Conference
considers that it would be desirable to study m o r e
thoroughly the possibility of devoting unemployment
benefit to such subsidies.
§ 7.—Credit Facilities in the Emigration or the Immigration
Country
Countries desiring to develop migration for settlement
might usefully examine the following possibilities in connection with the provision of credit facilities.
il

— 162 —
(1) In order to assist e m i g r a n t s to realise their property, l o n g - t e r m m o r t g a g e loans might be granted to
buyers by financial institutions in the emigration
countries ;
(2) In order to enable the settler to establish himself
on the land, a direct loan m i g h t be granted to h i m ;
(3) In order to meet t r a n s p o r t costs, loans might be made
to the settler or the settlement organisation;
(4) In order to m a k e it easier for the settlement organisation to obtain long, m e d i u m , or s h o r t - t e r m loans :
(a) the State might assist it in placing its issues on
the m a r k e t ;
(b) the State might guarantee the shares it issues or
the loans it contracts ;
(c) loans might be m a d e to it directly by official
uímüciai institutions ;
(5) In order to reduce the financial burdens of the settlement organisation :
(a) a financial institution might t a k e over the balance
of the organisation's m o r t g a g e loan to the settlers
as soon as the latter has repaid enough of his
debt to m a k e such an operation possible;
(b) s h o r t or m e d i u m - t e r m loans might be granted
to settlers by agricultural credit institutions
acting in agreement with the settlement o r g a nisation.
§ 8.—Co-operation between the Governments concerned
for the Purpose of Financing Settlement
It would be desirable for the Governments concerned to
co-operate for the purpose of :
(1) furnishing settlers with the credit needed in addition
to their own resources, and guaranteeing the r e i m b u r s e m e n t of the loans;
(2) placing t h e bonds and shares issued in the i m m i gration country on the m a r k e t of the emigration
country, and guaranteeing their r e i m b u r s e m e n t .

— 163 —
§ 9.—Financial Participation

of Third

Parties

The Conference decided to instruct its Officers to examine, in consul
tation with the representative of the Economic Committee and the
Directors of the Economic and Financial Sections of the Secretariat
of the League of Nations, the question of the procedure to be followed
in the study of Point 9, which is as follows :
(1) In cases in which an emigrant's resources are less than the sum
required for his settlement, and neither the emigration nor the
immigration country has the capital necessary to make up the
sum by means of loans : action by the Governments concerned
or other measures with a view to obtaining the necessary credits
on the international money market; the problem of guarantees;
(2) Measures likely to relieve settlement organisations or to develop
their financial resources by means of outside capital :
(a) Action by the Governments concerned with a view to placing
the issues of settlement organisations on the capital market
of a third country;
(b) Financial participation of third parties interested in the
promotion of land settlement, e.g. shipping companies,
railway companies, manufacturers;
(c) Taking over by a financial institution of a third country
of the balance of the settlement organisation's mortgage
loan to the settler as soon as the latter has repaid enough
of his debt to make such an operation possible.
CHAPTER I I : PROBLEM OF TRANSFERS

§ 10.—Co-operation between the Governments concerned
with a View to facilitating the Transfer of Emigrants' Assets
The Conference d r a w s attention to the desirability of
co-operation between the Governments concerned w i t h a
view to examining the possibility of facilitating the transfer
of e m i g r a n t s ' assets by m e a n s of exports of goods, including products needed for the p r e p a r a t i o n of the s e t t l e m e n t
by the settlement organisation, and tools and e q u i p m e n t .
§ 11.—Temporary Loans for Transfer Purposes
The Conference decided to refer this point (Point 11) to its Officers
with the same instructions as those given in respect of Point 9, for
the same reasons as those which prompted a similar decision with
regard to Point 9.
Point 11 is worded as follows :
Raising in a country other than the emigration country of transitional loans to make transfers necessary in connection with land
settlement.
il.

— 164 —

P a r t III : Organisations for Technical
and Financial Co-operation
§ 12.—Bilateral Technical Committees
It would be desirable for countries wishing, in principle,
to co-operate for the promotion of migration from one
country for settlement in the other, to consider the establishment by a g r e e m e n t of joint technical c o m m i t t e e s , to
be responsible for :
(1) the exchange and proper utilisation of the information
mentioned in § 1, p a r a g r a p h s (1) and (2);
(2) the organisation of the co-operative action required
for the execution of the settlement schemes m e n tioned i s 5 4 and ihn cxt-tveñl natio« of the ¿¿¿£SJS:ÍÍ¿S
t a k e n by the countries concerned, mentioned in
§§ 5, 6 a n d 7;
(3) the elaboration of the m e a s u r e s of
operation mentioned in § 8.

financial

co-

§ 13.—An International Credit Institution
Point 13 of the plan of discussion referred to the " utility of setting
up an international credit institution to facilitate the financial participation of third parties in the cases considered in Points 9 and 11 ".
The Conference decided to refer this point, like Points 9 and 11, to its
Officers for study of the procedure to be followed in dealing with it.

P a r t IV : Future Action
Point 14 of the plan of discussion, which concerned future action,
was referred to the Officers of the Conference, which examined it
together with Points 9, 11 and 13, and the proposals of the representatives of Ecuador and Venezuela.
*

*

— 165 —
RESOLUTION OF T H E CONFERENCE
The Conference, having carefully studied the technical
and financial obstacles to the development of m i g r a t i o n
for settlement, and having adopted the above conclusions
containing its suggestions for their removal,
I
Invites the Governing Body of the International Labour
Office :
(1) to consider m e a n s of bringing these conclusions to
the notice of the Governments concerned ;
(2) to instruct the International Labour Office :
(a) to set up and m a i n t a i n a regular service of information regarding m i g r a t i o n for settlement with
a view to facilitating the exchange of such information between the countries concerned;
(b) to continue its technical researches into the o r g a nisation of m i g r a t i o n for settlement; and in
particular to u n d e r t a k e , if possible at an early
date, a study of the organisation of the official
settlement institutions mentioned i n § 3 of t h i s
Report, and of the lessons to be learned from
experience as r e g a r d s the principles on which
these institutions a r e organised and worked ;
II
Having noted, on the other hand, that t h e large-scale
development of migration for settlement is hindered i n
some countries by financial obstacles whose r e m o v a l
requires, in addition to the m e a s u r e s described in the
conclusions recorded in this Report, international credit
operations on the nature of which the Conference feels
itself unable to m a k e a pronouncement,
Expresses the wish t h a t t h e Governing Body of t h e
International Labour Office should proceed with the consultations and other steps necessary for the establishment
of a P e r m a n e n t International Committee on Migration for
Settlement, comprising representatives of all countries
which declare themselves interested in the question a n d

— 166 —
decide to join the Committee, as well as experts on economic, financial and social questions, etc.; the duties of
this Committee would be :
(a) to promote the co-ordination of the activities of the
emigration and immigration countries concerned ;
(b) to further, particularly with reference to concrete
cases, the study of the international financial problems involved in the development of migration for
settlement and of the suggestions made to the Conference for their solution, mentioned in §§9, 11 and
13 of this Report;
(c) to carry out whatever tasks may be assigned to it
in connection with the international credit operations which the countries directly concerned may
consider necessary for the development of migration
for settlement in a manner satisfactory to themselves
««.Hut. X i l C

3CZci£x*3#

APPENDICES
I
LIST OF REPRESENTATIVES
I. Representatives of the Governine Body of the International
Labour Office
Government Group :
H.E. Tytus KOMARNICKI, Minister Plenipotentiary, Representative
of the Polish Government on the Governing Body of the International
Labour Office.
Substitute : H.E. Fernando GARCÍA OLDINI, Minister Plenipotentiary of Chile in Switzerland, Austria and Hungary; Representative
of the Chilean Government on the Governing Body of the International
Labour Office.
Employers' Group :
Dr. H. C. OERSTED, Vice-Chairman of the Governing Body of the
International Labour Office; Director, Bureau of Employers' Federations of the Four Northern Countries.
Workers' Group :
Mr. E. KUPERS, President, Netherlands Federation of Trade Unions.
II. Representatives of Governments
Argentina :
H.E. RUIZ-GUIÑAZÚ, Envoy Extraordinary and Minister Plenipotentiary at Berne; Permanent Delegate accredited to the League of
Nations.
Mr. C. A. PARDO, Secretary-General of the Delegation of the Argentine Republic accredited to the League of Nations.
Adviser : Mr. C. A. COLL BENEGAS, of the Research Institute of the
Central Bank of Argentina.
Austria :
Mr. E. KOMERS, Ministerial Councillor, Chief of the Federal Migration
Service.
Mr. F. RAGER, Secretary of the Chamber of Workers and Salaried
Employees, Vienna.
Bolivia :
H.E. A. COSTA DU RELS, Minister Plenipotentiary and Permanent

Delegate accredited to the League of Nations.

— 168 —
Brazil :
Mr. D. Pinheiro MACHADO, Director, Federal Population Service.
Mr. Y. O. DB OLIVEIRA, First Secretary of the Brazilian Legation in
Switzerland.
Advisers : Mr. H . DORIA DE VASCONCELLOS, Director, Land Settlement and Immigration Department of Sâo Paolo.
Mr. Gaelzer NETTO, Commissioner of the United States of Brazil.
Chile :
H.E. Fernando GARCÍA OLDINI, Minister Plenipotentiary of Chile
in Switzerland, Austria and Hungary; Representative of the Chilean
Government on the Governing Body of the International Labour
Office.
Colombia :
H.E. Don Luis CANO, head of the Colombian Delegation accredited
to the League of Nations.
Dr. J. M. Y E P E S , Legal Adviser.
Dr. Abelardo Forero BENAVIDES.
Mr. Jan BRABLEC, Chief of Section, Ministry of Social Welfare.
Dr. Josef K O T E K , Senior Counsellor, Ministry of Social Welfare.
Dominican Republic :
Mr. DE HANOT d'HARTOY, Consul General of the Dominican Republic at Geneva.
Ecuador :
Mr. Gastelû CONCHA, Consul General of Ecuador in Switzerland; [Secretary of the Permanent Delegation of Ecuador accredited
to the League of Nations.
Hungary :
Mr. L. DE BÖSZÖRMENYI, Counsellor, Ministry of Foreign Affairs.
Mr. L. Levente KADAR, Chief of Section, Ministry of the Interior.
Mr. I. SZEIBERT, Secretary, Ministry of Agriculture.
Japan :
Mr. Juitsu KITAOKA, Permanent Delegate accredited to the International Labour Organisation.
Netherlands :
Mr. R. A. VERWEY, Director, Unemployment Insurance and
Employment Exchange Service.
Mr. J . A. A. HARTLAND, Director, Netherlands Emigration Institute.
Peru :
Dr. José Maria BARRETO, Chargé d'Affaires of Peru, Permanent
Counsellor accredited to the League of Nations.

— 169 —
Poland :
H.E. W. MAZURKIEWICZ, former Polish Minister in Argentina.
Mr. M. BIESIEKIERSKI, Chief of the Employment and Migration
Section, Ministry of Social Welfare; Assistant Director of the Employment Fund.
Mr. Z. WOYDAT, Director of the National Agricultural Bank,
Member of the Board of Directors of the International Settlement
Company.
Mr. J. WAGNER, Assistant Chief of Division, Ministry of Foreign
Affairs.
Switzerland :
Mr. P. A. FELDSCHER, Chief of the Emigration Office.
Mr. A. JOBIN, Chief of the Employment Exchange Section of the
Federal Office of Industry, Arts and Crafts, and Labour.
Uruguay :
Mr. A. CARBONNEL
zerland.

DEBALI,

Chargé d'Affaires of Uruguay in Swit-

Venezuela :
H.E. C. PARRA PEREZ, Minister Plenipotentiary of Venezuela in

Switzerland.
H.E. M. AROCHA, Permanent Delegate accredited to the League of
Nations.
Mr. Carlos R. DE LAS CASAS, Official Immigration Commissioner.
Yugoslavia :
H.E. Dr. Ivan SOUBBOTITCH, Envoy Extraordinary and Minister
Plenipotentiary, Permanent Delegate accredited to the League of
Nations.
Substitute : Mr. V. DRAGOUTINOVITCH, First Secretary of the Permanent Delegation accredited to the League of Nations.
III. Representative of the Economic Committee of the League
of Nations
Dr. Richard
potentiary.

SCHULLER,

Envoy Extraordinary and Minister Pleni-

— 170 —

II
PLAN OF DISCUSSION
Part I : Technical Problems
CHAPTER I : INFORMATION AND ASSISTANCE FOR SETTLERS

1. Exchange of information on the openings for land settlement by
immigrants :
(1) Regular collection by Governments of immigration countries of
as full information as possible on :
(a) the general conditions of admission for immigrants proposing
to settle on the land;
fh) t.hp facilities "ranted to immÍ£fTñr:t. settlers, e.,f. ài reirurdu
transport, customs duties, maintenance during the different
stages of the journey and on arrival, etc.;
(c) the provisions of land law or agrarian law which affect
settlement;
(d) the public and private land which is available for settlement
and on which production is possible in conditions likely to
ensure the settlers' success;
(e) the conditions under which public or private land can be
acquired by individual immigrants or by settlement organisations intending to place settlers upon it;
d) the existing official or private settlement organisations which
are prepared not only to sell land on the deferred payment
system but also to prepare it, establish settlers upon it,
and assist them technically and financially until they
become independent; and the conditions offered to settlers
by those organisations;
(g) the location of the land suitable for settlement; its distance
from means of communication; transport organisation and
costs; the situation as regards the marketing of the settlers'
products; the kinds of farming for which the district is
suitable; the price of land; the cost of establishment; the
amount of working capital required; the approximate net
yield of the land; general conditions of life in the district;
(h) national or local taxes payable by the settler or the settlement organisation; irrigation dues, etc.;
(i) the general development works which have already been
carried out in the district, or which the public authorities
could undertake in connection with a settlement scheme;
(j) any other data for arriving at a better idea of the settler's
chances of success.

— 171 —
(2) Regular collection by Governments of emigration countries of
as full information as possible on :
(a) the number of families desiring to emigrate as settlers, their
technical qualifications, and the extent to which they are
able to contribute to the cost of their establishment;
(b) the legislative and administrative provisions concerning the
emigration of settlers, and the regulations regarding recruiting and the activities of settlement organisations, national
and foreign;
(c) the measures in force intended to facilitate migration for
settlement;
(3) Organisation of regular and rapid exchange of the information
mentioned in paragraphs (1) and (2) above between any emigration and any immigration country wishing to develop migration
from the former for settlement in the latter.
(4) Regular communication of information mentioned in paragraphs (1) and (2) above to the International Labour Office, to
be placed or kept at the disposal of the Governments concerned.
2. (1) Establishment of a free official or semi-official service, in the
emigration and the immigration country to be responsible
for :
(a) furnishing the information mentioned in Point 1, paragraphs (1) and (2), and in particular that regarding qualifications and capital required and living conditions, to
persons desiring to emigrate and settle;
(b) assisting prospective settlers in the choice of land,
regard being had to its quality and price and to the
additional financial obligations involved in its development ;
(2) Permanent co-operation between these services in the emigration
and the immigration country.
CHAPTER II : SETTLEMENT ORGANISATIONS AND SCHEMES

3. (1) Development and, in immigration countries in which they
do not already exist, creation of official settlement institutions.
(2) Development and support of private organisations which
furnish a guarantee, either through their rules, or through
the participation in them of the State or of public financial
institutions, or through the control exercised over them by
the authorities, that the settler's interests will not be sacrificed to commercial ends.
4. (1) Before group settlement by immigrants is entered upon,
preparation, or approval, by the public authorities of the
immigration country of detailed schemes laying down, inter
alia, conditions regarding :
(a) The preparation and development of the land ;
(b) The organisation of production and marketing;

— 172 —
(c) The preparation, reception, and establishment of the
settlers and their families;
fd) The financing of the expenses to be borne by the State,
the settlement organisation, and the individual settler
respectively;
(e) The control to be exercised by the State, and the assistance to be rendered by the State in the execution of the
scheme.
(2) Collaboration between the emigration and the immigration
country in the preparation of these schemes.
5. Administrative and fiscal facilities which might be granted by the
countries concerned :
(1) Free performance of recruiting and selection operations, and
free vocational and general training of prospective settlers;
(2) Exemption of settlers and their families from administrative
dues connected with the formalities of departure, and from
consular fees.
(3) Exemption of the effects of settlers and their families from
customs duties;
(4) Exemption of s.-ttlernent organisation::; íruixi certain taxes
and dues, or reduction of such taxes and dues :
fa) tax on transactions in real estate;
fb) land tax.
(5) Temporary exemption of settlers and their families from all
taxes.
Part II : Financial Problems
CHAPTER I : METHODS OF FINANCING SETTLEMENT OPERATIONS

(transport, acquisition of land, equipment of the settlement
and of settlers, maintenance of settlers)
6. Measures for the reduction of the settler's or the settlement
organisation's costs.
(1) Transport costs :
fa) Free transport of the settler and his family on the territories of the emigration and the immigration country.
fb) Total or partial payment by the State of the cost of the
sea voyage.
(2) Execution, at the expense (wholly or in part) of the State,
of the general preparation and equipment of the land intended
for settlement.
(3) Supply of public land by the State, free or at a reduced price.
(4) Supply of tools and equipment to settlers, free or at a reduced
price.
(5) Contribution of the State to the cost of maintaining settlers
and their families at the various stages of their journey and
during the initial period of their establishment.

— 173 —
(6) Granting of certain State subsidies to settlement organisations
or to individual settlers.
7. Credit facilities in the emigration or the immigration country :
(1) Assistance to emigrants in realising their property before
departing : grant of long-term mortgage loans to buyers by
financial institutions in the emigration country;
(2) Loans (long, medium, or short-term) to settlement organisations :
(a) Facilities granted by the State to assist the organisation
in placing its issues on the market;
(b) State guarantee for the shares it issues or the loans it
contracts ;
(c) Direct loans to the organisation by financial institutions;
(3) Measures for reducing the burdens of settlement organisations
by participation of the financial institutions of the countries
concerned :
(a) Taking over by a financial institution of the balance of
the organisation's mortgage loan to the settler as soon
as the latter has repaid enough of his debt to make such
an operation possible;
(b) Grant of short or medium-term loans to settlers by
agricultural credit institutions acting in agreement
with the settlement organisation.
8. Co-operation between the Governments concerned for the purpose of :
(1) furnishing settlers with the credit needed in addition to their
own resources, and guaranteeing the reimbursement of the
loans;
(2) placing the bonds and shares issued in the immigration
country on the market of the emigration country, and guaranteeing their reimbursement.
9. Financial participation of third parties :
(1) In cases in which an emigrant's resources are less than the
sum required for his settlement, and neither the emigration
nor the immigration country has the capital necessary to
make up the sum by means of loans : action by the Governments concerned or other measures with a view to obtaining
the necessary credits on the international money market;
the problem of guarantees ;
(2) Measures likely to relieve settlement organisations or to
develop their financial resources by means of outside capital :
(a) Action by the Governments concerned with a view to
placing the issues of settlement organisations on the
capital market of a third country;
(b) Financial participation of third parties interested in the
promotion of land settlement, e.g. shipping companies,
railway companies, manufacturers;

— 174 —
(c) Taking over by a financial institution of a third country
of the balance of the settlement organisation's mortgage
loan to the settler, as soon as the latter has repaid enough
of his debt to make such an operation possible.
CHAPTER I I : PROBLEM OF TRANSFERS

10. Co-operation between the Governments concerned with a view
to facilitating the transfer of emigrants' assets by means of exports
of goods from the emigration to the immigration country, including
products needed for the preparation of the settlement by the settlement
organisation, and tools and equipment.
11. Raising in a country, other than the emigration country, of
transitional loans to make transfers necessary in connection with land
settlement.
Part III : Organisations for Technical and Financial
Co-operation
12. Establishment, by agreement between countries wishing, in
principle, to co-operate for the promotion of migration from one
country for settlement in the other, of technical committees respon(1) the exchange and proper utilisation of the information
mentioned in Point 1, paragraphs (1) and (2);
(2) the organisation of the co-operative action required for the
preparation of the settlement schemes mentioned in Point 4,
and the co-ordination of the measures, taken by the countries
concerned, mentioned in Points 5, 6 and 7;
(3) the elaboration of the measures of financial co-operation
mentioned in Point 8.
13. Utility of setting up an international credit institution to facilitate
the financial participation of third parties in the cases considered in
Points 9 and 11.
Part IV : Action of the International Labour Office
14. (1) Centralisation for exchange of all information on migration
for settlement, and in particular of information communicated to the Office in accordance with Point 1, paragraph (4).
(2) Co-operation of the technical services of the International
Labour Office with such of the Governments concerned as
so desire, in the preparation of concrete settlement schemes
or in the study of the problems of technical and financial
co-operation involved in the execution of such schemes.
(3) Utility of^continued study by the Office, with the assistance
of members of the Correspondence Committee on Migration
and of other experts whom it seems necessary to consult,
of the problems involved in international technical and
financial co-operation with regard to migration for
settlement.

— 175 —

III
INFORMATION SUPPLIED BY DELEGATES
TO THE CONFERENCE
Information transmitted by Way of Example by the Polish
Delegation concerning Approximate Costs of Settlement
for which Possible Methods of Financing are contemplated
in Part II of the Plan of Discussion
I . AVERAGE COST O F SETTLEMENT F O E A FAMILY I N ARGENTINA
(MISIONES)
Swiss francs

Per cent.

1. Cost of transport (2 adults, 2 chil2. Price of the land (20 h e c t a r e s ) . . . .
4. Cost of implements and tools
5. Cost of materials for the building
6. Cost of maintenance until

1,830
1,200
135
135

41.0
27.0
3.7
3.7

480

10.6

720

15.0

4,500

100.0

first

Total.. .
Note : Taxes, consular visas, etc., are not included.

II. AVERAGE VALUE OF THE SETTLER'S UNDERTAKING
IN THE FIRST YEARS

(In Swiss francs)

Clearing
of
land
Implements,
tools, e t c . . .
House
and
working pre-

2nd
year

3rd
year

4 th
year

5 th
year

6th
year

1,200

1,200

1,200

1,200

1,200

1,200

135

270

480

640

920

1,200

135

135

135

135

135

135

480

640
80

720
120

800
240

880
320

880
400

120

240

400

640

800

2,445

2,895

3,415

4,095

4,615

Cattle
Tenant right
valuation .
Total...

Beginning of

On taking
up possession
of the
undertaking

1,950

— 176 —

III. CREDIT

CAPACITY

OF THE SETTLER IN ARGENTINA
DURING THE FIRST YEARS

(MISIONES)

(In Swiss francs)
When only 50 per cent, of the settler's holding has been paid :
On taking up
possession
of the undertaking

975

Beginning of
2nd year

3rd year

4th year

5th year

6th year

1,225

1,450

1,710

2,050

2,310

IV. POSSIBILITIES OF FINANCING A FAMILY OF SETTLERS

(With some variations by way of example)
(In Swiss francs)

Total
amounts
necessary

Cost of transport.
Price of t h e l a n d . .
Clearing,
implements a n d tools,
house, c a t t l e . . .
Cost of maintenance u n t i l first
harvest, s e e d . . .
Total...

First variation

Second variation

Settler's
ready Subsidy Credit
money

Settler's
ready Subsidy Credit
money

1,830
1,200

930

1,830

750

280

720

720

4,500

1,000

470

900
1,200

1,200
450

300

720
1,830

1,670

2,100

900 1,500

Note': The variations given above are only examples. A number of other possible
variations can be made by changing the three essential elements : settler's ready money,
subsidy and credit.

— 177 —
Communication transmitted by Mr. Dulphe Pinheiro
Machado, Government Representative of Brazil, for the
Information of the Conference
PRODUCTION STATISTICS SECTION OF THE MINISTRY OF AGRICULTURE
PRICE OF ARABLE LAND IN VARIOUS STATES OF BRAZIL, 1987
Price per hectare
(In Swiss francs [1 Sw. fr. equals 4 milreis 000])
States
Amazonas
Para
Maranhäo
Piauhy
Rio Grande do Norte ..
Parahyba
Fernambuco
Alagoas
Sergipe
Bahia
Espirito Santo
Rio de Janeiro
Säo Paulo
Parana
Santa Catharina
Rio Grande do Sul
Minas Geraes
Goyaz
Matto Grosso
Ceará

States

Amazonas
Para
Maranhäo
Piauhy
Ceará
Rio Grande do Norte
Parahyba
Pernambuco
Alagoas
Sergipe
Bahia
Espirito Santo
Rio de Janeiro
Sâo Paulo
Parana
Santa Catharina . . . .
Rio Grande do Su! . .
Minas Geraes
Goyaz
Matto Grosso

1st quality

2nd quality

Maximum

Minimum

Maximum

Minimum

15
250
42
250
750
500
500
410
750
500
130
520
810
410
250
500
520
85
25
410

12.5
20
2.5
4
50
5
15
40
7.5
2.5
10
20
5
10
15
25
2.5
2.5
4
25

10
180

7.5
10

Land for
stoekebreeding
Maxi- Minimum
mum

200
800
250
250
250
650
450
50
130
300
200
200
400
200
60
20
250

7.
125
25
3
150
20
500
2.5 125
10
200
35
180
7.5 500
2
180
10
45
15
80
2.5 250
7.5 150
30
150
25
350
2.5 150
1.25 45
2.5
13.
100
125

Virgin land
Maximum

3rd quality

Maximum

Minimum

Minimum
5
5
5
2.5
5
2.5
7.5
18
2.5
1.25
20
5
5
5
20
7.5
1.25
0.50
2.5
40

Land in the
vicinity oí towns
Maxi- Minimum
mum

125
75
35 25
20
500
250
0.25
200 0.25
40
25
7.5
18 5
250
1.25
75 2
50
250
5
210
160 15
350
250
160 2.5
15
410
5
1,000 7.5 2,500
165
500
5
2,500 5
350
850
850 20
20
500
1,000
850 25
7.5
250
750
1.25
600 1.25
100
250
5
160 5
110
5
250 2.5 1,250
400
5
12,500
850 5
150
5
500
410 5
500
210 7.5 6,000
7.5
350
7.5
500 7.5 2,000
300
1.25
750 1.25 12,500
0.75
85 1.25
100
85
15 0.50
30
8.5 0.25

25
0.25
5
2.5
25
7.5
7.5
7.5
40
5
5
10
20
5
7.5
15
15
2.5
4
1 25

— 178 —

Extract from Legislative Decree No. 58 of 10 December 1937,
promulgating the Provisions concerning the Parcelling Out and Sale
of Land on the Instalment System
Whereas the parcelling out of land for sale on the instalment system
continues to increase;
Whereas t h e transactions thus effected do not transfer the right of
possession to the purchaser, and under section 1088 of the Civil Code
either of the parties may cancel the transaction before the deeds of
sale and purchase have been signed;
Whereas this provision affords practically no legal protection to
the numerous purchasers of lots whose only guarantee consequently
consists of t h e integrity, good faith and solvency of the undertaking
effecting the sale;
Whereas in order to guarantee the transactions made by means of
contracts for the purchase or sale of lots, it is essential to protect the
purchaser against the possible alienation of or servitudes on lots
affected by sales; and
Whereas the parcelling out and the sale of urban or rural holdings
is frequently effected without the purchaser having any possibility
ci vcriiymg "cue TITIC GCCGS OI zac vendors ;

The President of the Republic of the United States of Brazil decrees
as follows :
Article 1.—Owners or joint owners of urban or rural land who
wish to sell their land in lots and by public sale by means of successive
and periodical payments shall be bound, before announcing the sale,
to deposit with the public surveyor's office of the district :
I. A report signed by them or their accredited representatives
which shall state :
(a) The name, area, boundaries, site and other details of the
property;
(b) A chronological list of the title deeds for the previous
30 years, with indication of the nature and date of each
deed and the registered number and date of authenticated transfers or copies of the title deeds and proof
that these have been duly transferred ;
(c) The plan of the subdivision showing the scheme of
urban development or of industrial or agricultural
planning, giving in this latter case information as to
the quality of the land, the water supply, affirmative
or negative servitudes, roads and pathways, distance
from the chief town or municipality of the district and
transport stations and the easiest means of access.
II. A plan of the property signed by the engineer who carried out
the survey and the parcelling of the land into lots, accompanied b y all technical and legal information showing the site,
the size and the number of the lots, the dimensions and names
of the ways of communication and of open spaces, construction
work and improvements and public ways of communication.

— 179 —
III. A copy of the certificate-book, or of the standard contract,
concerning the engagement for the sale of the lots.
IV. A certificate that nothing is owing in respect of taxes or mortgage.
V. A certificate of the validity of the documents mentioned
under I (b).
§ 1. In the case of urban property the plan of the subdivision of
the land shall be submitted previously to the municipal authority for
approval together with the opinion of the public health and military
authorities in so far as they are concerned.
§ 2. Certificates showing the existence of mortgages or the nonpayment of taxes or the existence of any action in respect of the
property or of any personal action or any dispute in respect of the
deed of the civil or commercial debt shall not constitute a reason for
refusing registration.
§ 3. If the property is encumbered by any mortgage, the report
shall be accompanied by a public deed in which the holder shall state
the conditions under which he undertakes to transfer the lots free of
encumbrance in the definitive deed of purchase or sale.
§ 4. If the municipal authority approves the modifications, the
plan of the subdivision may be modified with regard to lots not
included in the subdivision and with regard to the plan for the construction of the ways of communication, provided that the lots included
in the subdivision or definitely purchased are not affected by the said
modification.
The plan and the report thus approved shall be deposited with the
Municipal Survey Office for fresh registration, in accordance with the
provisions of section 2 and the sub-sections thereof.
§ 5. All persons concerned shall be entitled to examine the report,
the plan of the subdivision and the documents deposited even for the
mere purpose of enquiry and a fee shall not be charged therefor.
In this case only the usual fees for certificates supplied shall be
charged.
Article 2.—On receiving the report and the documents in question,
the registrar shall issue a receipt to the depositor and after registering
and ascertaining that they comply with the law he shall notify the
public of the deposit by means of a notice displayed in the usual
place and published on three separate occasions during a period of
ten days in the official gazette of the State concerned and in a newspaper published in the judicial area.
§ 1. If, within 30 days following the third insertion of the notice,
no protest has been lodged, the registrar shall proceed to register the
documents provided that they are in order. Otherwise, the file shall
immediately be sent to the competent judge who shall take cognisance
of the protest. The judge's decision shall be published by the registrar who shall bring it to the notice of those concerned.
§ 2. An appeal may be lodged against the decision to refuse or
approve registration.

— 180 —
Artide 3.—Registration shall have the effect of making the ways of
communication and open spaces mentioned in the report and plan
inalienable in any way.
(The other articles of the Decree deal with the procedure to be
followed.)
2 March 1938.

Communication transmitted by the Delegation of Peru to
the Conference of Experts on Technical and Financial International Co-operation with Regard to Migration for
Settlement
A Brief Statement concerning the Present Position in respect of
Migration for Settlement and of Immigration in Peru
A. Since its independence, Peru has endeavoured to facilitate the
establishment on its territories of settlements of European emigrants.
As a result of difficulties of communications in the interior, these
efforts, however, have not as yet produced the expected results.
B. The Peruvian Government, actuated by various reasons and
iiûto.bly by the desire to promote immigration, included in a three-year
plan operating since the beginning of li)ä'/ the con» U action of uu:;;erous roads leading from the seaports to areas in the interior on the
higher reaches of the Amazon which, on account of their climate and
fertility, may be said to be the most suitable part of the country for
establishing migrant settlements.
C. By the Decree of 14 April 1937, the Government of Peru has
regulated the exploitation of the valuable forest lands in the areas
mentioned above. Special permits for forestry work will in future be
granted to settlers in the form of renewable 10-year contracts, requiring
the settlers to clear at least 1,000 cubic metres of timber during the
first year of the lease, 2,000 cubic metres during the second year and
3,000 cubic metres during the following years. The charges made for
permits are modest. In addition—and this is particularly important—
the executive authorities have, in virtue of the Act of 12 August 1937,
prolonged the period fixed by previous legislation during which the
importation of machinery and equipment used by settlement undertakings is free from duty.
D. All matters connected with settlement come within the competence of the Department of Agriculture, Stockbreeding and Settlement which forms part of the Ministry of Public Works. Undertakings engaged in settlement work are accorded every facility by
the latter. Nevertheless, although this was done in the past, the
budget estimates no longer provide for subsidies for such undertakings.
The facilities granted by the Government take a different form at
present, but there is no diminution in the assistance given to undertakings desirous of engaging in the establishment of settlements of
European migrants in Peru.
Geneva, 4 March 1938.