Dear Mr. Bruce,

My last letter to you was written on the day before the Easter
holidays. As I have had no spell since I returned to London in
January 1925, I took a couple of extra days away from the office
this week. On my return yesterday I found nothing of any
importance awaiting me.

I have to acknowledge your letter about Major Greene. [1] I will
certainly do what I can to place him in the way of getting the
right type of information and of meeting men who will be useful to
him.

BRITISH TRADE

In several recent letters I have drawn your attention to two
points
(1) that Bankers, Economists, and the President of the Board of
Trade [2], strongly supported by the stunt press, have been
forecasting a substantial improvement in trade this year.

(2) that so far the official trade figures not only do not support
this optimism but, so far as exports go, actually make a worse
showing than in 1925.

During the last fortnight a more chastened tone has been
observable. I am afraid that once more the happenings of the last
three years are to be repeated.

Each year, December and January, those in financial and official
responsibility have declared that the worst is over and that there
are grounds for a quiet optimism'. One year in the three this
optimism lasted until May but normally it evaporates in March and
I think that this year, in spite of the greater flourish of
trumpets from Lombard Street and Whitehall, the month of April
will see the end of any marked optimism.

Frankly I cannot see any reason why British trade should revive at
the present time for the following reasons:

(1) the High Authorities attribute British depression mainly to
world impoverishment consequent upon the war. The comparative
figures of British and Foreign export trade developments, which I
sent you with my letter of March 18th [3], go a long way to
disproving this point of view.

(2) under-production by the workers is practised to a much greater
extent in Great Britain than in any of the countries that are her
commercial rivals.

(3) Great Britain has chosen (as has Australia to a far greater
degree) to regard the social welfare of the worker as being a
State responsibility to a greater extent than have most of her
rivals. Whatever social advantages this policy gives, it must be a
handicap under present conditions of labour. It seems to me that
the obvious corollary to such a view point is the necessity for
sheltered markets for the export trade of Great Britain. I wonder
whether you would feel inclined to develop this idea in your
speeches in this country in the Autumn. It could be done without
in any way touching the question of internal protection.

(4) there are not wanting signs of an ending of the 'boom' in the
United States. A slump may not eventuate there but if there is any
serious falling off in the internal purchasing power of the United
States of America, then we may well see a great effort at
expansion of American export trade, with severe consequence to
Great Britain in the South American and in other markets.

I am convinced that the one permanent road to British prosperity
is through Empire Development, It will be a slow road but a sure
one. If I am right in assuming that 1926 is going to be another
year of overseas trade depression, then in October it will be
easier to preach the necessity for a bold, sustained and
comprehensive policy of Empire development.

The West African per capita purchases, which I have quoted to you
before, are a most striking example of how Imperial schemes assist
Great Britain. The 22,000,000 natives of the West African
Colonies buy 12/per head from Great Britain, whereas the citizens
of the U.S.A. only buy 8/8d.

While writing on this subject, I should like to say that I hope
you will give me, at an early date, information as to what, if
any, use you intend to make of me at the Imperial Conference. If
there are any special points you desire investigated, data
collected, etc., an early notification will make good work the
more possible. I should very much appreciate hearing from you on
this subject before long.

FUTURE OF THE IMPERIAL ECONOMIC COMMITTEE

I propose to send you such ideas as I may have on this subject
from time to time and later to gather the various ideas together
into a single memorandum which I will send to you some weeks
before you sail from Australia.

I have one fresh idea to make today. I should like to see the
Imperial Economic Committee become responsible for a Year Book on
Empire Development. I do not mean a very heavy statistical volume,
such as the official Dominion Yearbooks, but a survey of
developments (a) undertaken; (b) proposed in each Dominion and
Colony, and a yearly statement as to the progress of Empire trade
both between Great Britain and the Empire and between the various
parts of the Empire. I think such a Year Book, if well done, would
arouse the greatest interest and receive a good 'press' throughout
the Empire. It should have an excellent educational effect. Who in
Australia knows what is being undertaken in East or West Africa,
or indeed in South Africa? There is no publication which does
anything of the sort I have in mind. I should like to know if you
think well of the proposal.

My idea is that a Sub-Committee of the Imperial Economic Committee
should be responsible for the Year Book. Needless to say I should
like to serve on such a body. Perhaps you might feel inclined to
sponsor this idea at the Imperial Conference.

AUSTRALIAN MARKETING IN LONDON

By this mail I received from the Commonwealth Dried Fruit Board a
memorandum on the joint Publicity Scheme in which, inter alia, it
was stated that your Government was preparing Export Control
legislation for Canned Fruit, and was thought to be contemplating
legislation for Meat, Wines and Fresh Fruit.

I am convinced that the joint Publicity Scheme is well conceived
and ought to be both economical and effective.

I do, however, desire once again to draw your attention to the
question of general policy for Australian marketing in London.

There now exist the London Agencies for Dried Fruits and for Dairy
Produce; a Canned Fruit London Agency may soon be in existence.

[4] There is also the London office of the Australian Meat
Council. I am convinced that we must have one London Office to
control general policy. I have, I know, expressed this view to you
already several times but the position becomes clearer as time
goes on.

It seems to me that what we really require is something as
follows:

(a) A technical representative for each type of commodity, who
would undertake the day to day business of supervising the
distribution of the commodity. He should be located in the heart
of the trade. He would normally require one fully qualified
Assistant and a small clerical staff He would correspond direct
with Australia on questions of detail but copies of all his
correspondence should be sent to the Central London Board.

(b) A Central Australian Marketing Office. Here there should be a
Board charged with the duties of
(1) settling general policy, such as questions affecting method of
selling, use of Brokers, remuneration of Brokers, negotiations
with Trade Organizations, with Railways, Dock Authorities, Cold
Storage Corporations, etc. In addition the settlement of large
questions of business policy, such as forcing sales or
alternatively of holding produce back in anticipation of a better
market. This latter question is one the determination of which
really requires a wide general knowledge of the state of trade of
this country.

(2) Publicity, as already arranged under the joint scheme.

(3) Educational propaganda, such as I undertake personally at
present.

The Central Board should consist of a representative for each type
of commodity, the Australian representative or representatives on
the Imperial Economic Committee and a Government Chairman.

I feel that some such scheme would secure full coordination, would
avoid the possibility of foolish action by one London Agency
wrecking the prospects of another and would also prove a more
economical method of running Australian Marketing.

If you have a series of independent London Agencies, it will prove
difficult to (a) obtain the services of sufficient men of the
right calibre to serve thereon; (b) to pay the members and chief
officials sufficient remuneration to obtain the best type of
services, a matter to which I venture to suggest Australia is not
paying sufficient attention.

I feel fairly confident that you have in mind some such type of
organization.

THE VALUE OF THE EMPIRE TO BRITISH INDUSTRIES

In my last letter I sent you schedules in regard to Birmingham and
Leicester. Today I enclose particulars about Glasgow and Bradford.

PRESS CUTTINGS

I enclose two cuttings from the Manchester Guardian Commercial,
one comment on the Annual Grant and one an adverse comment on the
Merchandise Marks Bill.

Yours sincerely,
F. L. MCDOUGALL