My dear Prime Minister,

THE BRITISH GOVERNMENT

I am enclosing a leading article from today's 'Times' which I am
sure will interest you considerably. You will see that, for the
second time, the 'Times' is seriously urging Baldwin [1] to
reconstitute his Cabinet and to take a firmer grasp upon the helm
of state. I am convinced, as I feel that you also are, that it is
most necessary that some such reconstruction should take place if
the present Government is going to make any effective appeal to
the country in two years' time. There are a number of able
individuals in the team but collectively I think it would be
correct to describe them as a 'feckless' sort of Government. Their
recent record is certainly rather disturbing to their well
wishers.

EMPIRE MARKETING BOARD

I am forwarding to you, under separate cover, six copies of the
first report of the Empire Marketing Board [2], which you may care
to hand to some of your colleagues. I am sending copies direct to
Mr. Paterson [3], Mr. Latham [4] and Sir Neville Howse. [5]

Mechanical Transport Committee

I today attended the first meeting of the Mechanical Transport
Committee set up by the Empire Marketing Board, particularly on
the recommendations of the Colonial Office Conference [6] General
Sir Gordon Guggisberg, K.C.M.G., is Chairman and it was decided to
create a small Executive Committee with instructions to that
Committee immediately to prepare a general plan of attack on the
problems of mechanical transport in the less settled parts of the
Empire. As soon as this plan has been prepared, it will be
submitted to the Main Committee and then it will be sent to the
various interested Governments with proposals for joint
contributions in order to enable large scale plans for the
development of producer gas vehicles and other types of transport
particularly suited to roadless conditions to be pressed on with.

I hope that, provided Australia is satisfied that a satisfactory
plan of attack has been made out, there will be no difficulty
about a financial contribution from the Commonwealth Government. I
further hope that it may be possible to induce the Pastoralist
Associations who would benefit very considerably by the success of
such investigations also to contribute.

I will, however, write you much more fully on this subject when
the matter has reached a further state of development.

SIR GRANVILLE RYRIE [7]

I have had little opportunity as yet of a real talk with either
Sir Granville Ryrie or with Mr. Trumble. [8] Trumble is anxious to
arrange for a weekly meeting between the High Commissioner and
myself. Sir Granville is going to give me an early opportunity to
discuss a number of points.

I have told the High Commissioner that any assistance that I can
give him of a personal nature within the general field of my
various activities will be very readily afforded.

IMPERIAL ECONOMIC COMMITTEE
The Fish Report of the Imperial Economic Committee is nearing
completion and I hope it will be signed by the 29th of July and be
available for despatch to Australia by about the end of August.

I heard from Gepp [9] by cable that he is anxious for a conference
on the development of Australian fisheries. I am proposing to
cable him the probable date on which this report will reach
Australia in order that he may consider holding the conference
immediately after the receipt of the report. I think there is
little doubt that it will be a good and comprehensive document and
will contain more up to date information about fisheries than any
other existing document.

MEMORANDUM ON AGRICULTURE

In my letter of the 7th July [10], I sent you the first draft of a
memorandum entitled 'Agriculture and the Empire'. I am now sending
a revised draft and am enclosing six other copies in case you
might care to make any use of them. These further copies are in
the separate enclosure together with the Empire Marketing Board
reports. I have given copies of this memorandum to Amery [11] and
to a number of Members of Parliament here and shall send a few
copies to Mr. Paterson and to a few other persons in Australia.

It is possible that this memorandum may be used by the Cabinet
Secretariat here as a basis for a number of speeches which Mr.

Baldwin must make in Canada during his visit. I am rather hopeful
that the memorandum may cause a few Members of the Government to
think a little more seriously about the importance of developing
agriculture throughout the whole Empire.

THE RT. HON. L. S. AMERY, M.P.

Mr. Amery sails on Friday accompanied by Mrs. Amery and Captain
Brass [12] M.P., a pleasant and very wealthy young Conservative
Free Trader, who represents the Clitheroe Division of Lancashire.

Mr. Amery will also be accompanied by Huxley [13], the Secretary
of the Publicity Committee of the Empire Marketing Board, an
extremely pleasant fellow, and by Whiskard [14], of the Dominions
Office, who is quite able but perhaps rather heavily affected by
the Dominions Office atmosphere.

It so happens that on the same boat there will be travelling to
South Africa Mr. Broughton Edge [15], the Geologist and
Geophysical expert who it is proposed shall be in charge of the
geophysical experiments in Australia. This will give Amery an
excellent opportunity of getting to know something about this
subject.

Sir Edgeworth David [16] called to see me today in order
especially to impress the value and importance of Broughton Edge
and to urge that he should be secured at all costs to carry out
this work.

RESEARCH GRANTS DECISIONS

I am enclosing a copy of the confidential note which I prepare
from time to time for the Commonwealth Council for Scientific &

Industrial Research on the research grants decisions taken by the
Empire Marketing Board. The present memorandum covers decisions
from the 21st April to the end of June.

Yours sincerely,
F. L. MCDOUGALL