Dear Mr. Bruce,

EMIGRATION SUGGESTION

A few days ago Mr. Wardlaw-Milne [1], M.P., the Vice-Chairman of
the Conservative Imperial Affairs Committee (Mr. Amery [2] is the
Chairman) asked me to dine quietly with him in order to discuss a
suggestion that he had in mind in reference to Migration. He felt
that there were two great obstacles to a policy of rapid Empire
Development (1) the anti-food tax pledges of Mr. Baldwin [3], and
(2) the anti-migrant spirit in the Dominions.

So far as the first was concerned, I told him that if the
Government would accept the recommendations of the Imperial
Economic Committee and would put them into operation with zeal and
enthusiasm, the first obstacle would be at least temporarily
removed. To this he agreed but said that he regarded the second as
also being very weighty.

I pointed out the dependence of migration upon markets. He agreed
but cited the reluctance of Australian State Labor Governments to
help migration. He felt that it was necessary to take up fresh
ground on the migration question and suggested that a very strong
organization should be formed which should, if possible, include
all the existing societies, Big Brother, Child, etc. etc., to
undertake large administrative and financial obligations in regard
to migration. He felt that if such a body could be formed, it
could well be backed by British Government financial guarantees.

His idea was that the suggested body should share with the
Dominion Governments the financial responsibility of land
settlement, on this basis -that if the Dominions would ease their
drastic selective policy, the body should be responsible for the
migrant for a period of say 3 years and undertake to ship failures
back to Great Britain for that period. He felt, however, that the
body could not assume full financial responsibility.

We had an interesting and purely tentative discussion. I suggested
that if his idea was taken up, a possible basis for division of
financial obligation would be that the Dominion Government should
be responsible for such expenses of land settlement as led to
permanent improvements, i.e. the land, clearing, fencing,
dwelling, etc., while the proposed body should undertake
subsistence, transportation, etc.

Wardlaw-Milne wants to work up this idea into a form in which it
could be seriously discussed but in the meantime I should be very
glad if you would let me know if you see any elements of
brightness in his ideas.

21st December

MAJOR ASTOR [4]

Since the return of the Empire Press Delegation, I have had a long
talk with Capt. Shaw, of the 'Times', who accompanied Astor, and
have had lunch with Astor. I gather that the impressions they have

brought back can be summarised as follows:

1. Australia gave them a wonderful time.

2. That the Australian is more alive to Empire necessities than is
the Englishman.

3. That Australians are woefully ignorant of the first principles
of economics.

4. That primary production is being heavily penalised by what they
describe as extreme protection.

5. That if any serious calamity befell the wool-growing industry,
Australian finance and secondary production would be in a very bad
way.

I told Astor that I did not entirely agree with his diagnosis but
that, on the assumption that he was right, the remedy was more
largely in the hands of the Government here than most people
imagined. I pointed out that for the last twelve months His
Majesty's Government has done nothing to help Empire trade except
to carry the preferences. If the Government would make it
abundantly clear that it meant to assist the marketing of Empire
products, this would have the happiest psychological results in
the Dominions.

Astor appeared to agree and gave me to understand that he proposes
to incite the 'Times' to urge the Government to activity, starting
in the middle of January.

Astor normally leaves the editor a completely free hand but in
this case I think he will find G. D. [5] quite willing to co-
operate
I very much regret that the election campaign made it impossible
for you to have any serious talk with Astor.

While on the subject of the 'Times', I may mention that Peterson,
the Dominions Editor, spoke to me the other day about an ambition
he has to become the next Editor of the 'Argus'. He put it that he
had done amazingly well in getting his present job, but saw little
prospect of rapid advancement and would like to handle the 'Argus'
in support of your general policy.

IMPERIAL ECONOMIC COMMITTEE

The Parliamentary Session came to an end yesterday without the
Government having made any declaration of their intentions in
regard to the First Report of the Imperial Economic Committee. It
was, however, very significant to notice that, in the King's
Speech at the conclusion of the Session, reference was made to the
fact that, in addition to the preferences which had been carried
into effect, His Majesty's Government was earnestly considering
other schemes for assisting the marketing of Empire products.

I am told that this reference was added to the King's speech by
the Government as a result of the very large number of questions
that had been asked recently in Parliament. I enclose a series of
these questions which may be of interest to you, and also a marked
copy of the King's speech.

I have no doubt myself that your cable had as much or more
influence in causing the Government to put this sentence in the
King's speech as had the parliamentary questions. [6]

The last meeting of the full Committee was held on the 16th
December and no further meeting of the full Committee will be held
until the 12th of January. Sir Halford Mackinder [7] has gone away
for a holiday but, in the meantime, several meetings of the Banana
Sub-Committee and of the Price Structures Sub-Committee will be
held. Sir Halford intends to return about the 7th of January and
has asked Mr. Gubbay [8] and myself to hold ourselves available
for work on the Drafting Committee during the weekend following.

The Secretary [9] also has a great deal of preliminary drafting
work to do and I think that the Committee will complete all its
evidence during the second week of January and I expect the Fruit
Report will be signed before the end of the month.

Yours sincerely,
F. L. MCDOUGALL