Dear Mr. Bruce,

IMPERIAL ECONOMIC COMMITTEE

I am to-day forwarding, at the request of Sir Mark Sheldon [1],
the following cable explanatory of the work of the Committee up to
the present juncture:-

Economic Committee progress slow. Prior to Easter had one meeting
per week of three hours each we protested frequently against delay
(stop) This week two meetings held and in future two per week will
press for further meetings shortly hope for better progress now
(stop) Mackinder [2] Chairman also Chairman Shipping Committee
meeting weekly and Vice-Chairman Royal Commission Food Supply
sitting frequently this in my opinion chief cause slow progress
(stop) Royal Food Commission just issuing Interim Report this week
expected will then adjourn for some time. Mackinder goes to
Constantinople for important Government Arbitration this week
expect will be absent fortnight meantime Economic Committee has
been divided into Sub-Committees (1) General Policy which I take
with McDougall assisting (2) Fruit McDougall takes (3) Meat and
Fish I take (stop) Purpose to prepare matters for General Body
(stop) Cramsie [3] has given evidence made good impression (stop)
Have arranged Wholesale Australian Meat Dealers London be
requested prepare statement and give evidence (stop) Suggest
Australian Meat Producers and Shippers send me memorandum to reach
here not later first week of June of any news or suggestions for
betterment their position (stop) As far as I can ascertain Mutton
and Lamb situation fairly satisfactory New Zealand Representatives
[4] share this view (stop) Please arrange Mulvany [5] Customs
Department promptly sends all particulars as to quantities costs
of production packing prospects of supplies Canned Fruits apples
and any other fruits Australia seeking Export market (stop)
McDougall has all details necessary dried fruits (stop) British
Representatives [6] have given no lead or indication of policy as
yet (stop) We both are strongly opinion and are working in
direction of securing British Legislation requiring compulsory
statement of country of origin all meat fruit offered for sale by
both Wholesalers and Retailers in United Kingdom believing British
public sentiment will respond to supporting Empire production if
supported by suitable advertising and propaganda. Dominions to
mark as far as possible their products to lead to ready
identification. Canada New Zealand South Africa and Colonies
generally supporting this policy. McDougall has seen this message
and agrees same.

In comment on the above cable, Sir Halford Mackinder tells me that
although his other duties have necessitated a slow start with the
work of the Committee he was personally anxious that the issue
should not be rushed and anticipates a very great acceleration of
work as a result of the appointment of the Sub-Committees which
have now been adopted.

With regard to the request for information from Mr. Mulvany and
also the suggestion of the memorandum from the Australian Meat
Producers and Shippers, both Sir Mark and myself are anxious to
receive, while the Committee is still in active operation, the
very latest views on all these subjects from Australia and
although, especially on Fruit subjects, I have a fairly complete
mass of information, yet I fully concur with Sir Mark in
requesting from Australia the latest possible details.

While I fully concur with Sir Mark's view and am co-operating with
him as regards legislation in the direction of Merchandise Marks
Act [7], I am strongly of opinion that the work of the Committee
will lead to rather larger immediate results than anything

indicated in the cable.

So far as I have been able to judge the mind of the Chairman and
of the Members of the Committee, I have formed the opinion that
there is no prospect of any recommendation of direct subsidies to
particular industries. I contemplate that some form of Empire
Produce Board will be recommended as the actual body to whom the
Treasury would hand the Million Grant and that this Produce Board
would be empowered to spend the money according to the general
directions of the Imperial Economic Committee to whom the Produce
Board would be directly responsible.

This Produce Board would have directions in regard to expenditure
on publicity, market investigation, research such as cold storage
research etc., subsidised freights for breeding stock or any other
direction which the Imperial Economic Committee might recommend.

It appears to be necessary to create some such Body, because the
Economic Committee is itself a purely consultative authority which
could have no executive authority and because it is clearly
undesirable that every recommendation of the Imperial Economic
Committee should be the subject of debate in Parliament, as would
be the case if each particular small expenditure had to be the
subject of Parliamentary vote.

Sir Halford Mackinder is rather nervous about the possible effect
of Dominion Produce Control Boards in this country and in fact his
attitude was rather hostile, initially, as a result of the
evidence that had been put before the Food Commission by British
traders. After several long conversations with me, he has come to
see that the proper attitude for the British authorities to take
in regard to Dominion Produce Boards is:

1. To realise that they are a part of an inevitable movement.

2. To welcome that movement in Britain's own interest.

3. By a policy of sympathetic encouragement to attempt to induce
the Produce Boards to adopt a general policy that will be regarded
favourably by the British Authorities.

EDUCATIONAL WORK

During the Easter Recess there has been little work to do in
Parliament circles, and I have therefore concentrated on the
preparation of matter illustrative of the value of the Empire,
Australia and Preference to certain British industries. I have
just sent an article to the 'Times' on the Cotton Industry, of
which I enclose a copy. [8]

I am forwarding a most interesting example of the effectiveness of
quiet propaganda. It is as follows: I have frequently urged upon
Sir Edward Grigg, the Liberal Member for Oldham, the importance of
preference. I recently sent him a copy of my last 'Times'
Supplement article, a copy of which was despatched to you last
mail. On the 21st instant Sir Edward spoke at Oldham and made a
most effective appeal for preference. Today he wrote to me
thanking me for the help I had been able to give him. I am
enclosing the 'Times' report of his speech [9] and a copy of his
letter. This is just one example of what is continuously
happening. Strange as it may appear, I find members of both the
Conservative and Labour parties very glad indeed to obtain matter
which I prepare.

Perhaps you may care to show Grigg's speech and a copy of his
letter to me to some of your Colleagues.

MY POSITION

Further to my letter of April 9th [10], I received, on April 10th,
an offer from the Dried Fruit Control Board of the position of
Secretary at 750 per annum. I thereupon cabled you as follows:-

Have received offer of post Secretary, London Agency Dried Fruit
Board for one year's term at 750 per annum. In view of proposed
salary and of your cable of 6th April presume this means part time
employment. Please inform me as to what if any effect acceptance
would have upon my present allowance from Government. Should much
appreciate advice as to Government's general intentions in regard
to myself.

and received your reply on the 16th which read as follows:-

Commonwealth Government proposes to utilise your services in
connection with Organization of Marketing in London on basis of
1250 per annum. In the event of your accepting Dried Fruits
position, Government will still have first call on your services
and will pay you difference between salary 750 provided by Board
and 1250 mentioned.

I then cabled you personally as follows:-

Reference your cable 16th April shall be glad to be used as you
propose and am prepared to accept Dried Fruit position but must
point out that 1250 represents reduction 650 on present
allowance. My work necessitates considerable expense on
entertainment. On proposed basis an allowance of 500 minimum will
be absolutely necessary if I am to continue to do effective work.

I have received no reply to this latest cable. I am sure you will
fully understand the position. My actual out of pocket expenses on
lunches, dinners, etc. which are essential amount to a
considerable sum. 1250 a year, less income tax, on at least the
Dried Fruit Board's 750, is quite insufficient, especially as I
naturally neither have, nor can expect to have, any security of
tenure.

I realise all the difficulties that surround this question and if
I receive no reply from you to my last cable, shall write you next
mail making certain suggestions of which I believe you would
approve.

Without egotism I feel I can claim that I am doing valuable work
for Australia which no other individual is quite in a position to
do. This is particularly in connection with Parliament and the
Imperial Economic Committee. I desire most deeply to find a basis
which will enable me to continue to do this work, but I cannot, in
fairness to my own people remain content with an entirely
inadequate remuneration.

Yours sincerely,
F. L. MCDOUGALL