My dear Prime Minister,

IMPERIAL CONFERENCE

I very much regret that, owing to pressure of work, the notes on
the Agenda of the economic side of the next Imperial Conference,
which I sent you last week, were most unsatisfactorily put
together. I had written the notes at odd moments and did not have
time to go through them, with the result that I feel really
ashamed to have sent you so poor a document. I very much hope that
you will have put it in your bag and not have read it before this
letter reaches you, because I am enclosing a revised edition from
which at least the grosser defects have been eliminated. If it so
happens that you have not read the copy sent last week, I should
be very glad if you would have it destroyed and substitute the one
enclosed herewith in its place. [1]

You will notice that I am proposing to forward further notes on
quite a number of points. These will be sent to you as they are
prepared.

I thought perhaps that it would be desirable to send you a
cablegram informing you about the action which the Associated
British Chamber of Commerce have actually already taken, with a
view to preparation for the next Imperial Conference and the fact
that the Federation of British Industries, the Shipping people and
the Banks have been requested-and I understand are likely to
agree-to do the same.

TRADE WITH RUSSIA

This subject is again attracting a considerable amount of public
attention. There seems a deep seated belief-held not only by the
Labour people but by a good number of Conservatives and some
business men-that a better political relation with Russia would
lead to a substantial development of British trade. I am enclosing
two press cuttings illustrating this.

I was talking to Brumwell [2], who is at the present moment acting
as Editor of the 'Times' in the absence of Geoffrey Dawson, and
telling him how little foundation I thought there was to any such
position. He was very interested and asked me whether I would put
something together for the 'Times'. I have done this and now
enclose a copy of the article which the 'Times' may publish. I
think you will agree that it disposes very effectively of the idea
that Great Britain can hope for no [sic) large or permanent
increase of trade from the direction of Russia.

ADELAIDE UNIVERSITY AND ECONOMICS

About a week ago I had a long talk with Sir William Mitchell, the
Vice-President of Adelaide University, in order to discuss the
appointment of a Professor in Economics, upon which the Adelaide
University has now decided.

Mitchell said that there were about 5 applications in Australia
and that he was interviewing 3 or 4 persons here. Mitchell seemed
very anxious that the man selected should be a person who would be
able usefully to contribute towards the creation of a sound body
of economic thought in Australia.

I told him that, in my opinion, it would be extremely useful if
Adelaide could appoint a man who was neither the hide bound free
trader nor an extreme protectionist but one who was capable of
taking a realist point of view. I found Mitchell very strongly in
agreement with the view that in order effectively to criticise
extreme protection in Australia, it was necessary for the
criticism to come from someone who was quite sympathetic to
Australian ideals and who was prepared warmly to uphold the
necessity for a reasonable protection of Australian secondary
industries.

Among the men who are applying is a rather bright young man from
the London School of Economics-Skene-Smith, about whom I think I
have written to you before. [3] He has completed his Ph.D. Thesis,
a survey of economic experiments in Australia, and has spent a
year there collecting information and, on the whole, his thesis is
distinctly useful. Whether Skene-Smith has the qualities of
leadership, which are so necessary if a Professorial Chair is to
be really effective, I do not know. I told Sir William Mitchell
that if Adelaide appointed a man from this side of the world, I
would suggest that the University should agree to allow the
appointee 3 months over here, during which time I would make
arrangements for him to meet all the people that matter in
connection with agricultural economics and, if the University
desired it, would make the necessary arrangements for him to get a
bird's eye view of the economic activities of the League of
Nations and of the International Institute of Agriculture at Rome.

It would be very useful to Australia to have, at Adelaide, a man
prepared to take an active and intelligent interest in
agricultural economics. The very fact of such a man being a
colleague of Richardson's [4] would be an advantage.

EMPIRE MARKETING BOARD

After a lot of discussion and some heartburning, a compromise has
been effected between the Empire Marketing Board and the Treasury
in the matter of the report of the Select Committee of the House
of Commons on Estimates. The net result is that the E.M.B. has
refused to have a Finance Committee but has accepted the idea
that, in addition to the Financial Secretary to the Treasury being
a member of the Main Board, a Representative of the Treasury
should be appointed to the Research Grants Committee and the
Publicity Committee.

The Treasury has appointed a Senior man, who is quite a good
fellow, and he has been lunching with me today and I find he is
going to be quite easy to cooperate with.

We have further agreed to present Estimates of our probable
expenditure for each financial year, and for the financial year
commencing on 31st March 1929, our estimated expenditure is
900,000, a sum which, I think, will prove quite sufficient for
that year's needs.

The Select Committee on Estimates rather challenged the value of
our expenditure on Posters and it was therefore decided to prepare
a statement on the subject. The statement contains so much that is
of interest that I am enclosing a copy herewith, with the
suggestion that you should glance through it and especially notice
some of the letters which have been received from schools.

Yours sincerely,
F. L. MCDOUGALL