Dear Mr. Bruce,

ANGLO-GREEK TREATY

On May 6th I dispatched to you the following cable from Sir Mark
Sheldon [1] and myself.-
Reply representations made by us Economic Committee received
message from Fountain [2] in charge Commerce Treaty relations
Board of Trade that no danger Anglo-Greek treaty being signed in
near future.

IMPERIAL ECONOMIC COMMITTEE

Since my last letter a further series of meetings of the Panels
have been held and further progress made in the general
exploration of the subject.

I feel, however, that the Committee is somewhat in danger of being
overwhelmed with the mass of evidence and the magnitude of its
terms of reference. I have discussed this point with several
members of the Committee and I think that it may be decided to
cease hearing evidence at the end of May and during June to
concentrate upon the problems in front of us with the object of
securing an interim report for presentation to the Government on
the 1,000,000 before the end of the present session.

STABILIZATION OF PRICES

A Committee, consisting of officials of the Board of Trade and
Board of Agriculture, was appointed by the late Labour Government
to consider the stabilization of agricultural prices. This report
is now in the press and I have been given a copy of the final
proof. I am extremely interested to find that very great emphasis
has been laid by the Committee upon your speech at the Imperial
Economic Conference. I am told that the present Conservative
Minister of Agriculture [3] is very much impressed with this
report and is of opinion that, for three reasons, it is most
desirable that the whole question of the stabilization of prices
should be fully explored. His three reasons are-I am informed-
1. He does not believe that the British public will continue to
tolerate speculation in food products.

2. That stabilization affords the best basis for a great Imperial
scheme.

3. That it is urgently necessary to do something for British
agriculture.

CONDITIONS IN THE LEVANT

I have already reported to you the activity of a section of the
Labour Party in the direction of trying to secure the
Parliamentary Labour Party's adhesion to the principle of the
restriction of the importation of goods produced by sweated
labour. In furtherance of this idea, Dr. Haden Guest [4] visited
Smyrna and Greece during the Easter recess and has commenced the
publication of a series of articles on the hygienic and labour
conditions in Smyrna and Greece, particularly in the dried fruit
industry. I enclose a copy of the two articles by Dr. Haden Guest
that have so far been published, together with a small leader from
the 'Daily Mail' and the correspondence that has appeared in the
'Daily Mail' on this subject. [5]

Whatever effect Dr. Guest's revelations may have upon the Labour
Party there can be but little doubt but that they should be of the
very greatest importance to the Australian dried fruit industry.

Yours sincerely,
F. L. MCDOUGALL