(Due to arrive Melbourne-13.2.26)

My dear P.M.,

With regard to the question of adherence on the part of the
Dominions to the Pact, Tyrrell [1], with whom I discussed it this
week, would like to see Australia and N.Z. support Great Britain
by adherence even if Canada and South Africa do not. He would not
be at all appalled at the apparent lack of unity that this would
demonstrate to the world. He says Europe is fully seized of the
Imperial position and that such semi-support would not surprise or
dismay them. He takes the commonsense view of 'the more the
merrier' and is all against the 'loyal' Dominions (Australia and
N.Z.) being asked to draw in the horns of their loyalty by reason
of a lack of sense of responsibility on the part of Canada and
South Africa. [2]

After all, Australia and N.Z. are the 'all-British' Dominions-
Canada and South Africa being what Tyrrell once picturesquely
called 'mixed grills'.

Tyrrell recognises that from a tactical point of view you will
want to have your 'Pact' Debate prior to the Imperial Conference,
as the political opponents of the Pact in Australia would
otherwise be in a position to say that you had had the wool pulled
over your eyes by H.M.G. at the Imperial Conference. [3]

Hankey [4], while not disagreeing with Tyrrell, suggests that from
a tactical point of view it might perhaps be advantageous for you
to obtain Parliamentary authority before the Imperial Conference
to adhere to the Pact at such time as you may think opportune. In
other words, to have a general and non-committal debate on the
Pact before the Imperial Conference, ending on the note that it
appeared, from the Dominions' present knowledge and understanding
of the Pact obligations and the general European position, that
the Pact was an instrument to which Australia might with advantage
adhere, but that final consideration would be deferred until after
the ground had been more thoroughly explored at the Imperial
Conference. From an Imperial point of view, it would give you room
to manoeuvre.

2. With regard to the Limitation of Armaments Conference. Tyrrell
is still frankly sceptical of any real result coming out of it.

Houghton [5] (U.S. Ambassador in London) is a good Republican and
firm friend and supporter of Coolidge [6], and is 'grieved' that
'the Wilson crowd' have had sufficient influence to have the
President 'come round' to the extent he has with regard to both
the World Court and the League of Nations Disarmament Preliminary
Commission. I have this from Tyrrell and from Ray Atherton, First
Secretary of the American Embassy, with whom I dined recently.

Houghton's fear is that America will co-operate in this
preliminary Disarmament Conference and will there see that no
useful result in which America can share is to be forthcoming and
will then withdraw, with almost fatal results for any subsequent
Disarmament Conference, and that America will then be saddled with
the responsibility for its failure. [7]

3. A reasonably full account of the stage that had been reached in
the arrangements for the holding of the Imperial Conference was
given in the 'Daily Express' of 8th January. On my asking a
certain highly placed gentleman how he thought the 'leak' had
occurred, he said: 'Oh, through the usual channels, I expect!'

4. You will have seen that N.Z. has taken over from the Colonial
Office the administration of the Tokelau group in the Pacific (see
cutting 'Times' 7.1.26 by this mail). This is, of course, quite an
unimportant island group, but the principle involved is of
interest. (See My LON. 162 of 29th October, 1925. [8])

5. Departments are becoming busy on the Budget. I hear that the
Treasury people, when they see a member of a spending department
approaching, affect an air of intense melancholy. They are said to
be perennial pessimists from January to March.

6. Ormsby-Gore [9] goes off to West Africa. Amongst other things
he will attempt to push along any railway building projects in an
effort to help the iron and steel trade in Great Britain.

7. The Prime Minister will announce tomorrow the Government's
decision to proceed with a big electrification scheme throughout
the country, whereby a dozen big power stations will be erected,
with a controlling organisation something on the lines of the Port
of London Authority, in that it will be composed of citizen and
state-nominated representatives, as a buffer between the public
and the Government.

I am, Yours sincerely,
R. G. CASEY