My dear Prime Minister,

Under separate cover I have written you a rather long letter on
the subject of Australian wine [1], which I hope you will find
useful.

ROME CONFERENCE

I regret that I have been unable to dictate my report on the
General Assembly of the International Institute of Agriculture, as
I have only just in the last half hour received Mr. R. J.

Thompson's [2] report. You will remember that in my last letter
[3] I stated that the British Delegation had asked me to delay
writing my report to you until I had had an opportunity of
studying a preliminary draft of the British report. I hope to
complete my report for transmission by next mail.

While on the subject of International Economic activities, I have
this morning received a letter from Sir Arthur Salter, the
Director of the Economic Organization of the League, telling me
that he will be in London next week and asking me to arrange to
meet him, with the object of discussing the occurrences at Rome
and the relationship of the International Institute to the League
of Nations.

BIRMINGHAM LECTURE

Last Thursday I gave the opening lecture of a series on Empire
Trade which had been arranged to be held during this Autumn in
connection with the Birmingham University. In talking about trade
matters, I have always been worried as to how to use statistics
and graphs effectively and I decided to make an experiment and to
have all the essential figures and graphs made into lantern slides
for use during the lecture. This method proved extremely
satisfactory, as it was possible to show the audience exactly the
position and to retain their close attention in a way that is
quite impossible if a whole series of figures have to be verbally
used. This is a method which I think deserves wider use and I am
recommending the Empire Marketing Board to study the possibilities
of giving all their lecturers some small point illustrated by one
or two lantern slides to show the enormous importance of Empire
development to Great Britain's industrial future.

I am not sending you a copy of the lecture, because it was really
based on the survey which I recently prepared on 'Great Britain's
Position in World Trade' and I intend so soon as the League of
Nations' figures for 1927 become available in November, to re-
write the lecture in the form of a paper for publication by the
Empire Marketing Board.

IMPERIAL CONFERENCE

I expect that when you have had time to settle down after the
Election [4], your thoughts will begin to turn in the direction of
the next Imperial Conference. Should this prove to be the case, I
should be very much obliged if you would let me have some
expression of your views as to the type of preparatory work that
you think ought to be carried out before the Conference assembles.

The British press quote you as having stated that the next
Imperial Conference must be mainly concerned with economic
matters. Naturally I am in complete agreement with this point of
view. It seems clear to me that the Governments of the Empire will
not want to dig up the roots of the new political status question
in order to see how the plant is growing. Under these
circumstances economic matters ought to have a much more important
place both on the Agenda of the Conference and also in the public
estimation of the Conference proceedings than was the case in
1926.

There is very little doubt that the work of the Empire Marketing
Board will have created a new atmosphere by the time the
Conference assembles. Already there is a clear evidence of a
marked change of attitude on the part of Canada. I understand that
the Empire Marketing Board's Exhibition at the Toronto Fair had a
most stimulating influence on the trend of Canadian opinion
towards an increased belief in the importance of Inter-Imperial
economic consultation and development.

Another most interesting development has occurred in the last
week. Up to a few days ago, the Empire Marketing Board had
received no suggestions from the South African Government in
regard to cooperation in agricultural science but a despatch has
now been received, signed by General Hertzog [5], embodying
suggestions for a grant from the Board to make the resources of
the great Veterinary Research Station at Onderstepoort available
for Imperial in addition to South African purposes. This
suggestion will involve the Empire Marketing Board in a capital
grant of 10,000 and an annual grant of 11,000. It will be
discussed at tomorrow's meeting of the Research Grants Committee
and it is pretty certain to be approved. I shall naturally do
everything I can to see that not only is it approved but that the
approval is expressed in such a form as to create the very best
impression in South Africa.

It will probably be as well if, in the near future, I draw up some
form of memorandum on economic subjects which appear to me to be
capable of being profitably discussed at the Imperial Conference.

LOW CARTOON [6]

I am enclosing Low's latest cartoon from which I feel sure you
will derive considerable amusement. It is excessively unkind to
Cunliffe-Lister [7] and far from complimentary to many other
members of the Government.

Yours sincerely,
F. L. MCDOUGALL