(due to arrive Melbourne-29/8/25)

My dear P.M.,

I met Signor Nitti [1] at lunch recently. He is short and stout
and hardly the figure of hot blooded romance that he is rumoured
to be. You will remember that the Fascists tried to assassinate
him, but he got away and now lives at Zurich, practically banished
until the Fascist movement ends. He told me that Mussolini was
incurably ill with cancer complicated with the rather serious
remnants of youthful indiscretions. Dr. Mayo [2], the great
American diagnostician and surgeon, has been to Rome, but was
afraid to operate. He says his maximum term of life is eighteen
months. (I checked this all up with the F.O. afterwards and they
confirm it all.)

Nitti says his death-or his relinquishing of power-will be
followed by a short period of rioting and general disturbance,
after which constitutional government will come into its own
again. He mentions Giolitti [3] (although a very old man) as
possibly taking hold, although no doubt he has ambitions himself
Nitti says that Michelis [4] has left the post of Director of
Italian Migration to take charge of a big National Insurance
scheme. I have not yet had time to check this statement, but if it
is true it is good news, as he is the active thorn in the side of
the British Companies shipping Italian migrants to Australia.

Dr. Nicolas Murray Butler the President of Columbia University
(New York) was at this same lunch. He is said to be a great force
in America, both academically and politically. He is very far
removed from our ideas of the head of a great university. He is
not unlike Sir John Monash [5] in appearance, restless minded,
very well informed, a keen 'politician' and apparently very
strongly opinionated on all subjects that interest him. A
Republican and a violent anti-prohibitionist. Very distinctly a
man for you to meet when next in America.

Amery's [6] statement in the House of Commons on 27th July (I send
Hansard with official letter) with regard to my appointment was
satisfactory in that it established the position in the eyes of
the world of my seeing Cabinet and other papers.

I gather that Amery's proposed trip to Australia and other
Dominions is off as far as this year is concerned. He still hangs
on to the idea to the extent of having it in mind to go to Canada
in December, but his private secretary tells me he thinks it will
all be put off until next year. The 'Dominions Office' will be
older by then and a little better established and besides better
able to look after itself in his absence [7], his audiences in the
Dominions will be by then better educated as to what the new
Dominions Office means.

The rubber boom, generated by the Stevenson [8] arrangement of
limited exports from British rubber-producing countries, has
annoyed the American rubber people almost past endurance and they
have had the matter of its amendment taken up by the State
Department through Mr. Houghton, their Ambassador here, with
H.M.G. It touched them on the raw even two years ago when I was in
America when the rubber price was comparatively low; now that it
is nearly 5/- a pound, they are like a lot of wild cats about it.

I understand that the difference between the pre-Stevenson price
of the British rubber imported into U.S. and the post-Stevenson
price, is of the same order as the interest on our American Debt!
The very fine imperial spirit of Lord Milner's 'credo' which you
will find in this week's cuttings from the 'Times', has been the
subject of much comment in the press and in public speeches in the
last few days. [9]

In conversation with Boughey [10], the Secretary of the Royal
Colonial Institute, he says that he assumes that Sir Frederick
Dutton [11] must have been speaking without the book, in having
led you to understand that the R.C.I. was about to change its
name, to eliminate the word 'Colonial'. Such a change has been
under consideration for some time, but they have never been able
quite to make up their minds about it and it would need a
referendum amongst their members. The Colonial Office splitting
into 'Dominions' and 'Colonies' gives added point to the necessity
for a change, but it is far from being an accepted innovation yet.

It is a pity the title 'Imperial Institute' is not available.

Apparently there are a number of queer people who like to use the
letters 'F.R.C.I' after their names. 'F.U.E.I' (Fellow of United
Empire Institute) is not quite so impressive!

The unfortunate Lord Stonehaven [12] must have a remarkable
constitution to keep his health and strength through the last ten
days of feasting and junketing that he has been subjected to. Sir
Joseph Cook [13] in a speech called it 'Stonehaven week'. He
marries a daughter off on 17th August and leaves for Australia on
29th August by the Cape. He has asked me to go and stay at his
place in Scotland before he goes, but it is rather too far, I
think.

In conversation with Sir Joseph Cook recently he gave the opinion
that Theodore [14] would have great trouble to oust Charlton [15]
from the leadership of the Parliamentary Labor Party. He said that
what Labor always wanted was a respectable figurehead, which
Charlton provided, and that people coming from State Politics,
however able, were not welcome.

He also thinks that an R.C. Labor Leader would not be politic as
the majority of the Labor vote is Protestant.

I met Sir Samuel Hoare (Air Minister) today. He hopes that the
Ismailia-Karachi Air Route will be started by the end of the year.

He says that the extension at this end from England to Egypt is
more difficult. It entails either flying over a number of European
countries, which raises political difficulties, or the development
of a seaplane suitable for the purpose which is not yet quite
feasible. The extension from Karachi to Calcutta to Burma to
Singapore is simpler and will, he thinks, be a natural
development, although it is unlikely to take place for two or
three years.

The long distance government airship for experimental trial on the
Australian route will be laid down before the end of the year and
he hopes it may be in the air early in 1927.

Hoare emphasises his statement that the Egypt-India air service,
the experimental airship scheme, and the light aeroplane movement
that they are fostering, are not 'stunts' but are serious and
important movements, about which they would welcome sympathetic
interest on the part of Australia.

I have never yet mentioned to you the project of getting the
Australian League of Nations work into this office. I have thought
about it and I think it would be quite practicable to do so if and
when you feel able to give me a good assistant. I believe that
Herbert Brookes [16] and Sir Littleton Groom [17] will have spoken
to you before this about Major Fuhrman [18] leaving Sir Joseph
Cook and coming to this office at full time on League of Nations
work. I did not inspire this, and indeed have only just heard
about it. However, in view of your remark in a recent letter that
you do not intend to make any change in existing arrangements
until after the next election, I will not burden you with my ideas
on this proposal, other than to say that it is a reasonable one.

However, when the time comes I hope to put forward to you, in one
letter, my suggestions as to the extension of this liaison work
generally.

I enclose a short summary that I have made of Bywater's book 'The
Great Pacific War'. [19] Unless you are particularly attracted by
the ideas on which it is based as indicated in the summary, I
don't think the book is worth your time to read.

I am, Yours sincerely,
R. G. CASEY