My dear Prime Minister,

Many thanks for your letter of the 17th of October. [1] I was glad
to see that you thought that the question of the importation of
Alsatians into Australia was one worthy of your attention. [2] I
am also glad that you found my memorandum on the Economic
Importance of Pastures useful. I think there is a great deal to be
gained by breaking up the general phrase 'Agriculture' into
sections of large economic importance. Pastures are of such
immense significance to Australia that it ought to be possible to
kindle the public imagination for the application of research to
their improvement.

May I suggest that when Dr. Orr [3] reaches Australia, you would
find it well worth while to arrange for him to meet your Private
Committee of Pastoralists [4] to discuss the whole pasture problem
with them? May I also add to the suggestion that I made in my last
letter about your meeting Orr that it would be just as well if you
would arrange to see Orr without Sir Arnold Theiler? [5] Theiler
and Orr will get on extremely well together but Theiler has rather
a dominating personality and would be almost certain to carry the
conversation on to animal pathology, whereas I am quite sure that
one of the subjects that you could most fruitfully discuss is
pasture improvement and animal nutrition-Orr's particular strong
points.

CONCENTRATED FODDER

I very much regret that, owing to an oversight, the memorandum on
'Concentrated Fodders in Australia' was omitted from the
enclosures which accompanied my last letter. I am enclosing a copy
herewith.

IMPERIAL AGRICULTURAL RESEARCH CONFERENCE

The High Commissioner [6] handed me today a copy of your cable in
which I was very glad to see that you had, on behalf of the
Commonwealth Government, expressed to the British Government the
appreciation which you felt at the successful outcome of this
Conference.

An interesting article, signed by Dr. J. H. Grisdale, the Deputy
Minister of Agriculture in Canada, appeared in the 'Times' of the
22nd November and I am enclosing a Copy. [7]

EMPIRE MARKETING BOARD AND AUSTRALIA

This week I have received a cable from Rivett [8] intimating that
both you and Sir George Pearce [9] are anxious that every effort
should be made to get the Empire Marketing Board to co-operate
with the Commonwealth Council for Scientific & Industrial Research
on Australian entomological problems.

The Empire Marketing Board has already allotted 76,800 towards
entomological research within the Empire and has actually done
considerably more for this science as a whole than for any other
branch. However, in view of the strong feeling in Australia, I
felt it desirable to take an early opportunity of sounding Major
Walter Elliot [10], as Chairman of the Research Grants Committee,
on the whole question of E.M.B. financial co-operation with
Australia during the coming year.

I had a very long talk with Elliot last night on this subject and
pointed out to him that, as was almost inevitable, the lion share
of the eighteen months' research grants made by the Board had gone
to British Research Stations. In most cases the intention of the
grant has been to enable British Stations to extend their
activities into the Imperial field. Nevertheless the mere fact of
this research work being actually done in the United Kingdom
should mean that British agriculture will derive a larger degree
of benefit from these grants than will be the case in any other
part of the Empire.

Secondly I pointed out to Elliot that, as far as one could judge,
at least another twelve months would elapse before the Dominions
of Canada and South Africa, or the Government of India, were
likely to approach the Empire Marketing Board for financial co-
operation on any very large scale.

Thirdly I produced figures to show that the Tropical Colonial
Empire had already received handsome allocations and there was no
particular need for the Board to do very much in that direction in
the near future.

Fourthly I was able to show that, in spite of the British
Government having reduced the first year's grant to 500,000 and
of the decision temporarily to withhold a portion of the
1,000,000 for the present financial year, yet the Board had
allocated considerably less than its income and that, with the
unexpended portion and the income of the 1,000,000 for the
financial year 1928-29, there will be scope for large scale
schemes in the immediate future.

Fifthly I pointed out to Elliot that the logic of the situation
suggested that, as the two Dominions of Australia and New Zealand
were willing and anxious to co-operate to the fullest possible
extent in the scientific attack on Empire problems and desired to
receive the financial co-operation of the Empire Marketing Board,
the Board should be willing to entertain any sound proposals
coming forward from these two Dominions.

After carefully considering the position, Elliot said that he
agreed with my point of view. He felt, however, that while the
Empire Marketing Board would be well advised substantially to
support Australia and New Zealand during the next twelve months,
he was a little anxious not to make too many commitments which
would tie up the Board's income over a long period. He, therefore,
suggested that some at least of the Australian schemes should be
based on a 50-50 capital grant and a 50-50 maintenance for a
period of say three years. At the end of that time the grant from
the Board should be reduced from 50% to 25% with the intention of
the gradual elimination of the Board's assistance from certain
schemes within the course of from five to ten years.

In view of the apparent anxiety both of the Commonwealth
Government and of the Commonwealth Council for Scientific &

Industrial Research for financial co-operation, I thought it
advisable to send Rivett a private cable today giving him briefly
the gist of this conversation with Elliot.

After this talk with Elliot, Dr. Orr joined us and we dined
together in the House of Commons in order to discuss Orr's
forthcoming visit to Australia.

It was agreed that, in the event of the Executive of the
Commonwealth Council and Orr agreeing that it was urgently
desirable for the Empire Marketing Board to take early action on
any problems connected with Orr's visit, Orr should cable
privately to Elliot a recommendation which would immediately be
brought before the Research Grants Committee of the Board.

There is little doubt that, at the present time, if Elliot and
myself are both convinced of the desirability of the Empire
Marketing Board making any particular grant towards research,
there is the highest probability of that grant being accepted by
the Board as a whole.

C.C.S.I.R. EXECUTIVE

I feel sure that you will be interested to hear of the extremely
high opinion the people of this country have formed of the two
members of the Executive who have been over here recently. I have
already conveyed to you the sense of the way in which people here
regard julius [11] but you are probably not aware of the laudatory
opinions which Richardson [12] earned during the Imperial
Agricultural Research Conference.

I was very interested to hear Orr say last night, with Elliot's
complete concurrence, that Richardson, as a director of scientific
research, probably had only one or two equals in the British
Empire.

I do not think Richardson is regarded as being a very highly
scientific person himself but his vision and commonsense and his
ability to bring constructive ideas into any discussion have
profoundly impressed those who are interested in the development
of agricultural science.

As you know I have not met Dr. Rivett but I am receiving a
constant stream of letters from him, both of a personal nature and
also of a more official type and from these letters I should judge
that in Rivett you have selected a magnificent Executive Head of
this Organisation. With Julius, Richardson and Rivett working
together as a team, I feel that you are to be most warmly
congratulated on having made a selection which would be hard, if
not impossible, to beat.

INFORMATION

In a letter from Dr. Rivett dated the 17th of October, he told me
that you had enquired from him as to how the interchange of
information between my office and the C.C.S.I.R. was progressing.

I can only say that I wish that I was receiving from the
Development & Migration Commission anything like the same volume
and value of information. I realise, however, the immense task
that Gepp [13] has undertaken and I am naturally prepared to be
very patient in this matter.

TRUSTS

In the 'New Statesman' of November 19th there appeared an
intelligent article entitled 'The case for Trusts'. This seemed to
me a matter which is sure to engage your attention at some time. I
am, therefore, forwarding the article which you are likely to read
with interest.

DOMINION TARIFFS

In my last letter I told you that Sir Edward Hilton Young [14] had
strongly urged me to let him have an article for the 'Financial
News' on the effect of Dominion Tariffs on British Trades. The
article appeared on Tuesday and I was naturally pleased with the
prominence which Hilton Young gave it in his paper. I am enclosing
a copy of the article which, although it contains little that is
new, yet puts the position from a slightly different angle and may
perhaps be worth your glancing at.

POLITICAL

In conversation with Elliot last night, I tried to find out from
him whether he could explain why the Government Spokesmen, and in
particular Winston Churchill [15] and the Prime Minister [16], are
insisting upon taking a highly optimistic view of the prospects of
British trade.

Elliot replied that he was unable to understand the attitude,
especially as confidential memoranda from the Ministry of Labour
said that it was probable that there would be an increase in
unemployment during the next few months rather than any further
decrease. He pointed out that, apart from the short Labour
interregnum, many of the Ministers had been continuously in office
since 1917 and that there was, therefore, an almost inevitable
tendency towards laissez-faire. Elliot explained, at some length,
the impracticability, in his present position, of taking any
action to stimulate the Government towards a greater display of
constructive ability. He said that the younger Tories were
profoundly dissatisfied with the situation but he did not think
there was any feeling that a revolt from within the Party would be
likely to be successful.

Some of the newspapers have recently been discussing what would
happen to the Labour Leadership in the event of MacDonald's [17]
health causing his retirement. Very much to my surprise, two or
three newspapers mentioned the possibility of Tom Johnston [18]
being actually selected as Leader. I, personally, do not consider
that there is any possibility of this occurring for some years but
I should be by no means surprised if, in the course of time,
Johnston emerges as a Leader. With all his disadvantages of lack
of education and of that ingrained suspicion which is the worst
failing of so many members of the Labour Party, Johnston has a
really constructive mind and, I am glad to say, has become
thoroughly convinced of the immense importance to Great Britain of
Empire development.

Personally I do not anticipate that MacDonald will resign. He is
not only ambitious but also vain and it is, I think, generally
recognised in the Labour Party that the problem that would face
them in the event of MacDonald leaving the Leadership would be so
difficult that it is highly improbable that any section of the
Party would press for his resignation.

24th November

AUSTRALIAN KNOWLEDGE OF THE EMPIRE MARKETING BOARD

Tallents [19], the Secretary of the Empire Marketing Board, tells
me that by this mail he received a letter from Huxley [20] in
which Huxley said that, at Perth and Adelaide, the State
Governments appeared to have no knowledge of any sort of the
Empire Marketing Board.

This, frankly, is a little disconcerting. I have advised, I
imagine properly, that the Empire Marketing Board should address
all communications to Australia to Commonwealth Bodies and the
Board is in regular correspondence with the Department of Markets
& Migration and, of course, with the Commonwealth Council for
Scientific & Industrial Research. I had assumed that Markets &

Migration would have kept the State Governments informed. The
Board sends large masses of printed matter to the Department of
Markets & Migration and I think fifty copies of each set of
posters. Probably already, as a result of Amery's visit and
Huxley's talks to Mulvany [21], this has been remedied but I am
sure you will agree that it is most desirable that the public, and
especially the farming community, should understand the work of
the Empire Marketing Board.

STATISTICAL POSTER

I think a set of a special poster in map form showing the
purchases of British goods by the Southern Dominions in contrast
to the West and East of Europe will either reach you by this mail
or else by the next. This set is my own special poster, and I
should like to know your comments. It will be displayed here in
about a fortnight's time on the 1,200 special oak frames which
have now been erected in London and all towns of over 1000.000
population. I think the contrast is so vivid that it must teach a
lesson.

THE EMPIRE & BRITISH FINISHED GOODS

I have prepared for the education of the Empire Marketing Board a
statement showing the proportion of fully manufactured goods
purchased by Empire countries out of the total British export of
these goods. It is quite brief and I enclose a copy which is worth
your attention.

Yours sincerely,
F. L. MCDOUGALL