(Due to arrive Melbourne-20.2.26)

My dear P.M.,

I was on the point of telegraphing you a full summary of Mackenzie
King's telegram re Pact and the Imperial Conference [1], when Sir
Charles Davis [2] (Dominions Office) sent me a message saying that
he expected I would want to repeat it to you, but asking me
particularly not to do so, to which I thought it good policy to
agree, although I think he might have left the whole thing to my
discretion.

You will realise that, of the telegrams from the Dominions to the
Dominions Office, I am sent copies of those from Australia only,
although I see Hankey's [3] copies of those from all Dominions.

Davis made the point that if and when there are Liaison Officers
from other Dominions in London, you would not want your
confidential messages repeated by Canadian and South African
liaison officers to their respective P.M.s. I didn't argue the
point, although I think the answer would be that Australia had
little or nothing to communicate that she would cavil at other
Dominion P.M.s seeing.

2. McDougall [4] and Ritchie [5] are very depressed over what they
call the lack of success of the Imperial Economic Committee. The
Government do not seem able to stir themselves to any action on
the subject of the fostering of inter-Imperial trade. They both
smile in a sickly way when I suggest that what is wanted in this
country is a Ministry of Intelligent Anticipation.

3. I don't think I have told you that I keep in close touch with
McDougall in London. We dine and talk over things about once a
fortnight. I have not got your authority to tell him the contents
of telegrams between you and H.M.G. on economic matters, which it
would be advantageous to him to know. I would be glad if you would
give me the use of my own discretion in this matter, as I think it
would help things along on the economic side.

4. With regard to the relations between the Prime Minister [6] and
the Press of this country-or rather with the militant 'stunt'
press. He will have no dealings with them, will neither accept
their support nor give them any facilities. I understand, in great
confidence, that had he complied with a request for a certain
measure of political patronage to one of their number, he could
have had the unfailing support of the Rothermere group. [7]
However, he preferred his freedom, and they have, in consequence,
attacked him and attempted to embarrass him whenever possible.

Lloyd George's [8] methods were different. He was better equipped
mentally to meet them on their own ground. He granted them certain
privileges and rigidly expected his quid pro quo, and if they did
not play up he had no hesitation in attacking them without mercy,
in the House and elsewhere.

5. I hear privately that the Bergius process of producing oil from
coal (see my LON. 49 of 2nd April, 1925) threatens to be
uncommercial, but that the Badische Analin Fabrik are working on
another process which promises well.

6. You will find a sensible article in the 'Empire Review' (in my
cuttings) by General Sir Frederick Maurice [9] on 'The Chances of
War in the Pacific'. He can't see war in the Pacific as far ahead
as one can reasonably look.

7. An interesting development in this country is the increasing
knowledge and use of artificial sunlight, in the form of mercury
vapour lamps or arc lamps using special carbons. They are largely
used in hospitals and Children's Welfare Clinics, and even lately
by private people in their own houses. You can get a 'home outfit'
for 20 to 30. I have been using one now for a month during this
very cold weather and imagine (it may not be more) that it keeps
me fit. You merely 'sun' yourself in front of it, without any
clothes on, for a quarter of an hour a day. I don't think the
doctors know much about its effects other than that the intense
actinic rays appear to increase the number of red corpuscles in
the blood. I sunburnt myself with it lately and caused rather a
sensation in a chemist's shop by asking for something for sunburn,
with snow on the ground outside.

8. I have sent out a good deal of matter dealing with the U.S.S.R.

lately, as I think it may at any time be of value to have on
record the facts, as they are known, about the Soviet's
activities. However, when you sum it all up, it is practically
impossible to answer the question-'Is Communism on the up or the
down grade?'
From both an internal and external point of view, Communism like
everything else is dependent on material prosperity. And on the
curve of the general industrial prosperity of the U.S.S.R. must be
superimposed the erratic curve of success or non-success of the
wheat crop. They are probably a little firmer in the saddle now
than say in 1921 and 1922. But even on this point the experts are
far from dogmatic.

Kharakhan [10], the Soviet envoy to China, who was recalled to
Moscow some six months ago and told off for spending the vast sum
of 12 million in China with no very substantial result, has
returned again to China, so that their efforts there will probably
begin again.

9. I understand that Sir R. C. Lindsay [11] (from Constantinople)
is to be H.M. Ambassador at Berlin in succession to D'Abernon.

[12]

10. After being married for three or four years, Allen Leeper's
[13] Wife is about to have an infant-which is pleasing them very
much.

11. The height of tact was reached lately when a foolish woman at
dinner sitting next to the First Secretary of the Chinese Legation
said: 'How do you come to know so much about China?' He then told
her that he was, of course, a Chinese and had been born and
brought up in China: 'Oh, I thought you were a Japanese!'

I am, Yours sincerely,
R. G. CASEY