My dear Prime Minister,

DOMINION TARIFFS AND EMPIRE CONSCIOUSNESS IN GREAT BRITAIN

During the last few months I have on several occasions drawn your
attention to the extreme Tariff measures that have been proposed
or actually taken in Australia and Canada, which have gravely
complicated the task of the Empire Marketing Board in its
publicity work, and I am to-day enclosing a personal note which I
received from Tallents [1], the Secretary of the Board, which I
think you will find distinctly interesting.

I think you have met Alexander [2], but if you have not, you were
aware that he is almost certain to be a member of any future
Labour Cabinet, and therefore his remarks perhaps deserve more
attention than if they had merely been made by some ordinary
trader. [3]

TRADE UNION CONGRESS

The Trade Union Congress which was held this year at Edinburgh has
proved very distinctly interesting owing to the complete victory
of the moderate element over the Reds. I am enclosing two cuttings
from the 'Manchester Guardian' dealing with speeches delivered at
this conference, and have marked those portions which I think you
will be interested to notice. The first deals with a speech made
by Mr. MacDonald. [4] It is extremely interesting to find Mr.

MacDonald claiming great credit for the Labour Party on the ground
that members of the Labour frontage are on the Empire Marketing
Board. Incidentally, I rather agree with MacDonald that Baldwin
[5] made a mistake and was a little ungenerous on this occasion.

The second cutting deals with a resolution on the subject of the
importation of goods produced by sweated labour. [6] I do not know
whether one should attach too much significance to this movement,
but the fact that the resolution was carried without dissent is of
some interest.

ANIMAL INDUSTRIES

In my last letter I sent you a copy of the memorandum which I had
prepared for Gepp [7] on the Importance of Animal Industries to
Australia. I am now enclosing a further note on the subject which
I have prepared for the Empire Marketing Board. This is entitled
'A Note on the Economic Importance of Empire Pastures'. I think it
is worth your while to look over this, as some of the figures are
very striking.

THE TEST OF GEOPHYSICAL METHODS

Considerable progress is being made in the primary work of
preparing for the expedition which is to test geophysical methods
in Australia. Last week I had a conference with the scientific
staff of the Anglo-Persian Oil Company, and found that they were
proposing to carry out a somewhat similar series of tests in
Persia to those which are to be undertaken in Australia. I was
able to arrange for a continuous method of consultation between
the Australian experimental work and the Anglo-Persian. This
should be of substantial value and importance, for, although the
Anglo-Persian Company are wholly concerned with the location of
oil and the Australian tests will be more associated with methods
suitable for minerals, yet the results attained in each country
should have considerable influence on one another. I am very
hopeful that this geophysical work will prove of very great
benefit to Australia, and may bring home at a fairly early date to
the Australian public, the value of the Development and Migration
Commission. At any rate, I sincerely hope that what we have been
able to arrange about the visit will assist Gepp in his general
work.

EASTBOURNE SPEECH

Yesterday I was the principal speaker at the opening of an Empire
Exhibition at Eastbourne. I enclose a copy of the summary of what
I said, and have marked the two points which I think are worth
your attention. The whole proceedings went off very well, and were
largely attended. The only other speaker was Admiral Sir Reginald
Hall [8], who is the member for Eastbourne. We travelled down to
Eastbourne together and returned, and had an extremely interesting
talk. I am writing you a private letter [9], which is enclosed, on
one or two points which arose between Hall and myself.

Yours sincerely,
F. L. MCDOUGALL