As Bob says, R2 is needed to bias TR2 into its linear region so it can amplify. If you remove it, you will probably get no sound at all, or possibly very weak and distorted sound, depending on how leaky the transistor is.
Yes this circuit will receive short wave transmissions. Connect the bottom rail (the connector marked T) to an earth ground, and connect a long antenna wire to A1, A2 or A3. You will need to reduce the inductance of L1 and the capacitance of C1.
The diode and transistors must be germanium types.