My dear Prime Minister,

I was able to get away from Rome on Saturday the 5th October and,
travelling straight through, arrived in London on Sunday night
after one of the most unpleasant of channel crossings.

INTERNATIONAL INSTITUTE OF AGRICULTURE, ROME

There can be no doubt that the first meeting of the new
Agricultural Economics Committee at Rome was quite successful. A
sane spirit of realism dominated the discussions and if the real
Powers that be in Rome adopt the policy recommended by the
Committee, considerable progress towards the reform of the
Institute ought to be accomplished. Whether this will occur or not
is problematical.

I took the opportunity at the end of the Conference to have a very
frank talk with the Italian Secretary-General and a Dutch member
of the Finance Committee of the Permanent Committee and explained
to them how essential it was that Rome should be prepared for real
reform if it was to anticipate the continued support of the
countries of the British Empire.

You are probably aware that the International Institute was
established at an International Convention in 1905 and that some
of the quite urgently needed reforms would require an amendment of
some of the Articles of the Convention. When the Secretary-General
pointed this out to me, I very tentatively made the suggestion
that, as there would be a General Assembly of the State Members of
the International Institute next October, consideration might be
given to the idea of a request being made to Governments to give
their principal Delegate powers to attend a Diplomatic Conference
for the revision of the Articles of the 1905 Convention. This idea
was very well received by the Secretary-General and also by Mr.

Van Ryn. I satisfied myself that the Secretary-General had a real
desire for effective work and for reform and that no opposition
would come from him. If, therefore, the Italian Government can be
convinced that it would be greatly to the advantage of the
Institute, and also to Italian prestige, to have the Institution
working once again at full strength and along sane lines, it may
be possible to make a great deal of progress during the coming
year.

I understand that the inter-Departmental Committee, which is
sitting in London to consider the Agenda for the Imperial Economic
Conference, would be prepared to suggest that the work of the
International Institute of Agriculture should be placed on the
Agenda; this, I think, would be very much to the good.

I shall, during the next couple of weeks, prepare a report on the
work of the Agricultural Economics Committee and will also deal
fully with the general problems of the work of the Rome Institute.

I trust that my report will prove of use to the Commonwealth
Government both from the point of view of probable discussions at
the Imperial Conference and also to enable the Commonwealth
Council for Scientific and Industrial Research fully to appreciate
the present position in Rome and the potentialities of the Rome
Institute for useful service.

ECONOMIC ACTIVITIES OF THE LEAGUE OF NATIONS

Now that I am back in London, I have commenced to prepare a
confidential report on the economic tendencies revealed in the
discussions at the Assembly this year. I hope to complete this in
the course of the next week or ten days and shall forward it to
the High Commissioner [1], as the leader of the Delegation, for
submission to you.

I was so unfavorably impressed with the degree of financial
control of League expenditure exercised by the Fourth Committee
that I am proposing, with the assistance of Major Fuhrman [2], to
prepare another confidential report on this subject. I think it is
inevitable that League expenditure must slowly increase but, as
things stand today, there seems to be no effective method whereby
the Assembly does exercise a real supervision of expenditure.

LABOUR COMMONWEALTH GROUP

The Labour Commonwealth Group is being reconstituted in the new
British Parliament and will start its meetings shortly after the
House assembles. I have been invited to give an address on the
work of the Empire Marketing Board from the point of view of the
Dominions. This will obviously afford an opportunity of explaining
to the Group the immense importance of the maintenance of existing
preferences. I hope that there will be a reasonably good
attendance and a stimulating discussion.

THE IMPERIAL ECONOMIC CONFERENCE

I enclose a leading article from the 'Times Trade Supplement'
which was written by the Editor on the basis of some very full
notes supplied by me. [3] I hope that, if you have time to read
this, you will agree that it was a useful line to develop at this
juncture.

I am also enclosing a copy of an article on Imperial Economic
Cooperation, the typescript of which was forwarded to you some
time ago.

IMPORTATION OF SWEATED GOODS

I am enclosing a copy of a most interesting letter which appeared
in the 'Times' of the 30th September from W. E. D. Allen [4], M.P.

one of the Ulster Members. The letter seems to me a quite
admirable comment on this general question and the suggestion that
the Government should consider the imposition of wages
equalisation duties, although probably not of immediate political
significance, is one which I have long felt merits close study.

I shall be very interested in any comment that you might care to
make on this subject.

BRITISH MOTOR EXPORT TRADE

I am enclosing an interesting letter from Robert Horne [5] to the
'Times'. This letter has started a certain amount of
correspondence. I was very glad that Horne expressed himself so
warmly on the way in which the Commonwealth Government has
assisted British trade in the recent Budget. [6]

Yours sincerely,
F. L. MCDOUGALL