free trade and, at the 1932 Ottawa Conference, cementing commercial relations within the Commonwealth. Besides his preference for a cohesive British Empire and a protective tariff, he felt an independent British defence programme would be the wisest policy. However, budget pressures and a strong popular pacifist sentiment, forced a reduction in the military and naval budgets. MacDonald involved himself heavily in foreign policy. Assisted by the National Liberal leader and Foreign Secretary John Simon, he continued to lead British delegations to international conferences, including the Geneva Disarmament Conference and the Lausanne Conference in 1932, and the Stresa Conference in 1935. He went to Rome in March 1933 to facilitate Nazi Germany's return to the concert of European powers and to continue the policy of appeasement. On 16 August 1932 he granted the Communal Award upon India, partitioning it into separate electorates for Hindus, Muslims, Sikhs and Untouchables. Most important of all, he presided at the world economic conference in London in June 1933. Nearly every nation was represented, but no agreement was possible. The American president torpedoed the conference with a bombshell message that the US would not stabilise the depreciating dollar. The failure marked the end of international economic co-operation for another decade. MacDonald was deeply affected by the anger and bitterness caused by the fall of the Labour government. He continued to regard himself as a true Labour man, but the rupturing of virtually all his old friendships left him an isolated figure. One of the only other leading Labour figures to join the government, Philip Snowden, was a firm believer in free trade and resigned from the government in 1932 following the introduction of tariffs after the Ottawa agreement. Retirement By 1933 MacDonald's health was so poor that his doctor had to personally supervise his trip to Geneva. By 1934 MacDonald's mental and physical health declined further, and he became an increasingly ineffective leader as the international situation grew more threatening. His speeches in Commons and at international meetings became incoherent. One observer noted how "Things ... got to the stage where nobody knew what the Prime Minister was going to say in the House of Commons, and, when he did say it, nobody understood it". Newspapers did not report MacDonald denying to reporters that he was seriously ill because he only had "loss of memory". His pacifism, which had been widely admired in the 1920s, led