(Due to arrive Canberra 12.7.29)

My dear P.M.,

I have not yet met the new Ministers, but hope to do so next week
when they are more settled.

I hear that Sidney Webb [1] is a kindly and well disposed old man,
who has the reputation, from the 1924 Labour Government, of
lucidity of thought but suffers from indecision.

Their first Cabinet was held on 10th June. For your confidential
information. Ramsay MacDonald [2] gave Hankey [3] instructions to
record only their decisions at that and all future Cabinets, and
not the arguments on which the decisions were based. [4] This
threatens to make Hankey's task more onerous, as representatives
of departments will have to get from Hankey in conversation some
fuller indication of what was discussed in order intelligently to
interpret the decisions-which will mean a stream of departmental
callers on Hankey after every Cabinet. Ramsay may see the folly of
this decision and alter it later.

Ramsay MacDonald intends to take the chairmanship of the C.I.D.

and Committee of Civil Research himself. He left it to Haldane [5]
in his 1924 Government.

Hankey has spoken to MacDonald about my position here, and he was,
at first, a little suspicious, but asked Hankey to put a note up
to him about it. MacDonald made the point in talking to Hankey
that he would like my name to appear in some official list, so
that vis-a-vis the other Dominions there would not be any
suggestion that the Labour Government were perpetrating some
underground arrangement in our favour arrived at by their
predecessors. Hankey assured him that the scheme under which I
work had received a good deal of publicity and was made known in
detail to the other Dominions both at the 1926 Imperial Conference
and at other times. Luckily I had on my files the original letter
from you to MacDonald accrediting me to him, but as I arrived here
a fortnight after the 1924 Labour Government went out of office, I
never delivered it.

You will have seen that Ramsay MacDonald intends to visit the
United States at an early date. As you know, Baldwin [6] had
proposed to do this if he had been returned to power. MacDonald
will need careful shepherding over there as he doesn't, as yet,
know either his subjects-Anglo-American relations and the naval
question-or the United States.

Wheatley (Minister of Health, 1924) has been left out of the new
Cabinet. He has apparently lost caste with the Labour Party as a
whole in this last year or so, and has identified himself with the
back-benchers. This may not be unconnected with several libel
actions that he unsuccessfully conducted last year. He is a
publisher and was accused of having, in his capacity as an
employer, fallen away from true Marxian grace by not having paid
his men the minimum wage.

There is no need of comment on Mr. Jowitt's change of party after
the election. [7] I have heard nothing to make me believe that his
motives are other than they appear-desire for personal advancement
and office.

I have been obliged to subscribe to the 'Daily Herald'-the Labour
paper. Its circulation must have gone up a lot, as one now sees it
prominently displayed in all Government Department waiting rooms!
The first act of the new Government was to telegraph to the
British representative at the I.L.O. meeting at Geneva that H.M.G.

intends to proceed to ratify the Washington Eight Hours
Convention.

A Chiefs of Staff Sub-Committee meeting of the C.I.D. was held on
11th June at which the question of Coast Defence was discussed.

This is the first of the momentous series of meetings that you
will remember were to start in June. As you will realise, their
proceedings are being kept very secret, and most probably I will
not be able to tell you anything until their adumbrations are much
further ahead.

I hear that the Admiralty are very hurt at the tone of Sir John
Salmond's report on Air matters in Australia. [8] They repudiate
with an oath the implication that the Air can perform any
considerable service in the real Defence of Australia. I have
heard that they had in mind asking the C.I.D. to pronounce on his
Report, but I have done what I could to try and stop this, as no
good can come of it, and it can only breed bad feeling. In any
event, it is not the Admiralty's business. If Australia has any
doubts as to the weight to be attached to Salmond's report, it is
for Australia to ask the C.I.D. for an overriding opinion-not the
Admiralty.

I send in another letter by this mail an analysis that I have been
at some pains to put together of the Reparations business from the
Australian point of view. The new Government's attitude towards
the question is not yet known but you will get telegrams before
the letter reaches you.

The Hon. George Peel goes to Australia on June 21st on behalf of
the Merger Company. [9] He wrote 'The Economic Impact of America',
in which I was most interested a year ago and which I summarised
and added to-External Affairs have a copy, which it might interest
you to look at before he arrives; it is only about 20 pages. Peel
has been in to see me and I have got together a collection of
books for him as well as back Hansards and copies of wireless
reports, etc. He is quite a good fellow but with rather a nervous
manner.

I spent the last week-end with Clive Baillieu [10], who referred
to Mr. Fenton's references to him in the Federal Parliament (in
connection with the Wireless Merger) in March. [11] He is writing
you the facts, should you think it wise to use them, regarding the
inference that the Baillieu family had financial interests that
would benefit by the Merger.

I hear from Captain Feakes [12] that Captain Free (London
representative of Huddart Parker) did very well in Australian
interests at the Safety of Life at Sea Conference just terminated.

I enclose notes from Tyrrell and Vansittart with thanks for your
congratulations. The others telephoned asking me to thank you
appropriately. [13]

Antarctic Expedition business goes on at a great pace. I have been
in this office from 9 a.m. till 6.30 p.m. and about four nights a
week till 11 p.m. for many weeks.

I enclose letter from Chamberlain [14] in answer to a p.p.c. note
that I wrote him on his leaving office.

I enclose 'Times' cutting (11th June) giving the losses of the
Canadian Merchant Marine.

I enclose a collection of selected press cuttings which may be of
interest with regard to the new Government.

I send in another letter by this mail a summary that I have
compiled from all the authoritative sources available of the
tariff position of Australian goods entering foreign countries.

Henderson [15] asked for this-I think the Trade and Customs
Department wanted more information than was on their files.

I shall probably telegraph you shortly asking if I can have two or
three weeks' leave starting early in August, as soon as Davis [16]
and the 'Discovery' depart, as I am beginning to feel the need of
it.

I am, Yours sincerely,
R.G. CASEY