(Due to arrive Canberra 30.8.29)

My dear P.M.,

Many thanks for your long letter of 20th June. I have acquainted
Clive Baillieu [1], in confidence, with the general terms of the
position with regard to Amalgamated Wireless and the Merger
Company [2], as I think you would want him to know some of the
background.

I note what you say about superphosphates. It is true, as you
surmise, that the Dominions Office consult Dickinson on all
matters connected with these negotiations. [3] They have complete
faith in him and will not make any move except in consultation
with him. They realise he is a difficult and temperamental person
to deal with but they have great faith in his ability and
knowledge of the phosphate business. I have asked them on several
occasions not to communicate to Dickinson the substance of what I
was about to discuss-but I am quite sure from subsequent events
that they did so.

I note what you say about Officer and the External Affairs
Department [4] and I am most sorry-with you-at the position that
has arisen. As I anticipate that Officer will have to leave the
External Affairs Department, I am seeing what I can do here to get
him another job.

I have made it my business in the last three or four months to
write to McLaren [5] from time to time in order to establish a
friendly personal relationship with him. I will continue to do
this as I think personal touch in these matters is useful.

Harding [6] of the Dominions Office (now acting as Permanent Head)
asked me to go and see him during this week. He wanted to say
that, in his opinion, the Imperial Economic Conference would be
held to better advantage in Canada than in London. His reasons
(which he does not want quoted) were that there would be so much
opposition to your views from Snowden and from the Labour back
benchers that a Conference in London would be abortive. [7] He
admitted that if such a Conference were held in Canada it could
only be attended (in respect of the British Government) by the
President of the Board of Trade (Rt. Hon. W. Graham) and possibly
another Minister, and he agreed with my statement that in this
event they would most certainly be so tied by Cabinet decisions
before they left that they would not be able to agree to, or
possibly even discuss, anything that would be of much use to
Australia. Harding thinks that if the money can be found (and he
says that feverish search is being made to find it) the duties
will come off by next Budget and, of course, the preferences with
them, and it is his impression that any subsequent Tory Government
would only come into power on the basis of a pledge not to
reinstitute the food duties, whatever they might do about
safeguarding. I ventured to disagree with him to the extent of
saying that from our point of view Snowden would have to be fought
at some time and that this Imperial Economic Conference would be
our only opportunity of contesting his ideas for the next three or
four years.

I have since discussed the above with McDougall [8], who agrees
with you-and with me-that the Imperial Economic Conference must be
held in London. McDougall is not at all sure that the duties will
come off. Apart from the obvious difficulty in finding the money,
he thinks it is not at all certain that the Labour Party really
wants to interfere with them-and then there is the question as to
whether the Liberals would vote in a body for such procedure.

There seems little doubt but that the economic side of the next
Imperial Conference will be far and away more important than the
political side. Although there are a number of political questions
that are now very active (Singapore, Egypt, Russia, Disarmament,
etc.), they must all be resolved before next June-and there really
will remain little more than reviewing by the full Imperial
Conference of the results of the prior Experts Conference on the
incidence of Dominion legislation, shipping legislation and the
like.

It seems quite certain that, if you manage to keep the existing
duties and preferences, it is all you will do. No further tariff
assistance to Australian imports into this country for some years
seems possible. We will have to rely on a, gradual improvement due
to voluntary preference arising out of the activities of the
Empire Marketing Board. McDougall thinks it possible, in addition
and as a more concrete contribution, that the Labour Government
may consider 'bulk buying' in favour of the Dominions as applied
to, say, dairy products and dried fruits.

McDougall tells me that Neville Charnberlain [9] told him that he
had been made Chairman of the Conservative Party's Committee on
Imperial Affairs-which I presume means that Amery [10] has been
put into the background in this regard. I have always suspected,
since before the Election, that Baldwin [11] had had some such
conversation with Amery-from the fact that I saw Amery early one
morning a week or so before the Election and he was in high
spirits on leaving me to see the Prime Minister. I saw him again
that afternoon and he was plunged into the depths of depression. I
have always suspected that Baldwin told him at that interview that
he was not to have the Dominions Office if the Conservatives were
returned to power.

I talked to Sir Charles Hipwood lately (head of the Marine
Department of the Board of Trade). He admits that he does not know
the inwardness of the dispute between Lord Kylsant and his
brother, St. Davids, over the affairs of the Royal Mail Steam
Packet. He says that Kylsant is more of a financier than a
shipowner and that it is generally thought that he has to use a
good deal of ingenuity at times to keep all his various balls in
the air. He does not think for a moment that Kylsant is going to
crash-in fact, he says that he would not be allowed to crash as it
would involve too big interests.

I expect you will realise that Hankey [12] has not got quite the
same freedom, with this Government, to give me practically carte
blanche to send you what papers I want. Hankey is very good about
it and stretches his authority in this regard to the utmost-but we
will have to take great care that we do not let him down. I think
it would be a good thing, if you don't mind, to ask the Minister
for Defence [13] to take particular care that his Department does
not inadvertently make any comments by telegraph or despatch that
would indicate to His Majesty's Government, or any of the
Departments here, that we are having papers or information that we
should not have. This applies at present more particularly to such
delicate subjects as Egypt and Singapore.

I enclose photograph taken on the 'Discovery' shortly before she
left. Davis [14] has cut off the red beard with which he was
encumbered on arrival in London. I am (according to my wife)
showing signs of wear. The others are Dr. Hugh Robert Mill, the
'Grand Old Man' of the Antarctic and the author of the most
authoritative works on the subject-and a clergyman called the Rev.

J. Gordon Hayes, who has recently produced an up-to-date summary
of Antarctic work called 'Antarctica'. [15]

It is possible that Lord Lloyd [16] (so he tells me) may make a
trip to Australia towards the end of this year, of which I will,
if it matures, give you warning later.

I have heard a rumour, which I have no means of substantiating,
that McCormack [17] (ex-Premier of Queensland), who is now in
London, is contemplating entering politics in this country.

Hankey has just been made Secretary to the British Delegation to
the Reparations Conference at The Hague, which will mean that he
will be away for most of August and September.

The man who has been teaching me to fly has just killed himself by
running into another machine in the air, so that I am at present
subject to certain domestic pressure to give it up.

The 'Discovery' got away this morning, to my great relief. She
bumped the dock, so I hear by telephone, but apparently not
seriously. I have still a few press contracts to fix up and some
clearing up work-but the slavery of the last six months is at last
at an end. I have learnt a good deal about making arrangements for
an Antarctic Expedition-information which it is not easy to
capitalise on!

I am, Yours sincerely,
R.G. CASEY