My dear Prime Minister,

I find I have been somewhat remiss in not writing to you about the
British Government's proposal to use the Empire Marketing Board's
fund for advertising the British Industries Fair. Presumably the
matter is now closed but I ought to have written to you before and
I think I had now better let you have a brief summary of what
happened.

About six weeks ago, Ormsby-Gore [1] who was Acting Chairman of
the Board, told me that the Cabinet had asked him to put before
the Board a proposal that 25,000 should be made available from
the E.M.B. Vote for advertising the British Industries Fair. He
told me that he had replied to the effect that he thought that the
Board would very much dislike the proposal and that Overseas
Members, and particularly McDougall, should be sounded before any
such proposal was put forward.

The next step was that Sir William Clark, the Permanent Head of
the Department of Overseas Trade, who is responsible for the
British Industries Fair, asked me to lunch to discuss the
question. I told him quite frankly that if any such proposal was
brought before the Board, I should feel bound to oppose on the
ground that a precedent would be created which might have very far
reaching effects and gradually tend to an irresistible demand on
the part of manufacturers for the general advertising of British
manufactured goods out of the E.M.B. funds.

I am quite sure that Sir William Clark agreed that the proposal
was a dangerous one. I understand he did not consult any other
overseas member of the Board and apparently the Cabinet decided
not to bring the matter before the Board.

I thought that this stupid suggestion had lapsed when I was very
confidentially informed that the Government was cabling to the
various Governments of the Empire asking for their concurrence in
this proposition. I then thought it desirable to send you a secret
cable on the subject.

On Monday, the High Commissioner [2] showed me a copy of the cable
from the Secretary of State [3] to you and your reply. [4] I
cannot imagine that, after receiving your reply, the British
Government will continue to press this suggestion. What amazes me
is the extraordinarily stupid attitude of the British Government.

The 1,000,000 a year was the result of a careful estimate made by
the Customs and Treasury as to the value of the promised
preferences during the year 1924 had they been put into operation.

The inclusion of British Agriculture in the ambit of the vote has
involved very considerable inroads on the funds but I am strongly
of opinion-and I know that you concur-that it was desirable that
British agriculture should be included. The recent attempt to
insert the thin edge of the wedge for British industry seems to
show a complete lack of understanding.

I understand that Amery, who was informed of this proposal only
after the British Government's cable had actually been despatched,
was furious. [5]

Yours sincerely,
F. L. MCDOUGALL