Dear Mr. Bruce,

IMPERIAL ECONOMIC COMMITTEE

In my last letter I described at some length the way in which I
understood the Government was tending to consider the first report
of the Imperial Economic Committee. Since I wrote, Sir Gilbert
Grindle, of the Colonial Office, who is a member of the Imperial
Economic Committee, gave me information which confirmed the
statements made in my letter. I therefore felt that it was
necessary to take some immediate action and I wrote a personal and
confidential letter to Sir Philip Cunliffe-Lister [1], of which I
enclose a copy. [2] I also wrote at slightly shorter length to Mr.

Amery [3] traversing the same ground.

I understand that Mr. Amery instructed the two Dominion Colonial
Office Representatives on the Inter-Departmental Committee to make
it clear to the said Committee that the Secretary of State
considered that the Committee should produce an alternative scheme
for consideration of the Cabinet based on the assumption that the
�1,000,000 grant must annually be handed over in a block sum to an
Executive Commission and further suggested that the Imperial
Economic Committee should be given an opportunity of expressing
its view before the Government definitely decided on the type of
action they proposed to take.

I hope that you will agree that my letter to Sir Philip Cunliffe-
Lister was well advised. I feel fairly sure that you do not regard
the �1,000,000 grant as being of very great significance but,
having once been made, it appeared to me important to see that the
British Government carried out their intentions and appointed an
Executive Body to administer the fund which would correspond at
least in some degree with the intentions of the Imperial Economic
Committee. Had one been able to rely upon the Chairman of the
Imperial Economic Committee [4] expressing the views of the
Committee with any decision or clarity, one naturally would not
have written to members of the Government but would have strongly
urged the Chairman to make the definite representations.

I informed Sir Halford Mackinder that I had written and gave him
some slight hint of the nature of my communication but did not
provide him with a copy. He appeared to welcome my action.

On Tuesday next I am to see Mr. Amery and propose to discuss with
him the question of the British Government planning ahead on
Imperial economic questions, to which I made reference in my last
letter to you.

During the last ten months the leading members of the British
Government have done very little to place the British Empire and
the importance of Empire trade before the British public. I cannot
imagine why they do not do so to a greater degree. There is no
doubt about the public interest in the subject. There is, in my
opinion, and I know in yours, equally little doubt of the prime
importance of the subject and yet very little is said. I shall do
everything in my power to influence them in the direction of
shewing quite clearly the development of the British Empire is the
one great chance for the restitution of British prosperity and far
and away the most effective counterblast to subversive propaganda.

ARTICLE IN THE 'DAILY MAIL'

I enclose copy of an article of mine which appeared in the 'Daily
Mail' on October 12th on the proposed increase of Australian
preference on British motor cars. I think this will be of interest
to you.

Yours sincerely,
F. L. MCDOUGALL

[Handwritten]

P.S. Please note that the italics in the D.M. article are not
mine.