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64

14th April, 1926

PERSONAL & CONFIDENTIAL

Dear Mr. Bruce,

MAJOR GREENE [1]

Major Greene called on me on Friday last and again on Monday.

After a talk with him, I rang up Lord Clarendon's [2] Private
Secretary and arranged an appointment for Greene. I have given him
several other introductions and am going to invite several Labour
and Conservative Members, who are keen on migration, to lunches to
meet Greene.

I will do all I can to see that he has every chance of meeting the
people who have a point of view to express.

FRUIT REPORT

The Secretary of the Imperial Economic Committee [3] has had
further copies of some of the subsidiary reports duplicated and I
am therefore able to send you copies of the Apple Report and the
Citrus Report. [4] I am enclosing a memorandum on the advantages
which the Fruit Report may secure for the Australian producer. I
have prepared this for your information as I feel that you may
find such a summary useful for a public speech or for a statement
to the Press.

I now discover that the Chairman of the Imperial Economic
Committee [5] does not propose to publish the report until the
first week of May. If it should happen that serious trouble arises
over the coal situation this will mean very little publicity. I
have tried to arrange for publication at least a week before the
opening of the Budget. I saw Lord Burnham [6] on Monday and
induced him to give great publicity to the report in the 'Daily
Telegraph', devoting on separate days space to the Main Report and
then to the more important subsidiaries. I shall try to arrange
for the same treatment by the 'Times'.

'TIMES TRADE SUPPLEMENT EMPIRE NUMBER'

The Editor tells me that he is sending you a special copy of this
important number. [7] In it you will see an advertisement by the
Australian Dried Fruit Board which I designed and of which I now
enclose a 'pull'.

So far as I am aware, this is the first purely 'economic'
advertisement of a commodity. I showed a copy to Amery [8] and he
asked me to send copies to every Member of Parliament. I am
arranging for the London Agency of the Dried Fruit Board to have
60,000 copies printed of this advertisement, a copy sent to each
wholesale and retail grocer in the United Kingdom. I am also
arranging for a copy to be sent to the Secretary of every Chamber
of Commerce and manufactures Association with a request for an
expression of opinion from the members on this novel form of
advertising.

I hope you will be interested in the 'pull'.

ECONOMIC PROBLEMS OF THE EMPIRE

I enclose a copy of the fifth article from the 'Times Trade
Supplement' upon the Economic Problems of the Empire. [9] I would
especially recommend this article to your notice. You will
recognise the figures quoted in the table as emanating from me.

I also enclose a rather important leading article upon the
Australian Tariff in which the paper replies to some statement
apparently made by Mr. Pratten in the House of Representatives.

[10]

I also enclose, from the same issue, some editorial comments on
the Annual Grant of H.M. Government. [11]

THE 1924 CLUB OF HULL

Last night I was in Hull speaking to the above Club on 'Imperial
Development'. I am sure you will be interested in the basis upon
which this Club is formed.

As a result of the defeat of Baldwin's Government in 1923 [12],
the younger business men of Liverpool and of Hull took a serious
view of things and formed a Club to interest themselves in
politics and to examine political problems among themselves. The
Members consist of the younger business men, almost exclusively
those who are either already in a position of some authority in
their respective businesses or are likely to succeed to such a
position. The Club has an Economic section, Social Conditions
section, and an Electioneering section. It is supposed to be non-
party but, of course, is predominantly conservative.

It occasionally invites speakers to address the Club, when its
proceedings are kept confidential. At its other meetings the
various sections make reports on the work they have done. This
idea of getting the younger business men to take an active
interest in political and economic affairs appears to me to be
particularly sound and I propose to try to encourage several of
the younger Conservative M.P.'s, who represent industrial seats,
to have such Clubs formed; for instance in Manchester, Leeds,
Sheffield, and Bradford.

We must use the younger men to overcome the inertia of the old if
we are to make rapid progress on Empire Development.

A GREEK NEWSPAPER REPORT

I enclose a copy of a report which appeared recently in a Greek
newspaper. It is decidedly amusing. I presume it is the reflex
action of Mr. George Fairbairn's [13] remarks in Australia upon
the better chance for wine in the United Kingdom markets rather
than dried fruits.

THE ECONOMIC SIDE OF THE IMPERIAL CONFERENCE

On the 10th of April I received a cable from the Prime Minister's
Department on this subject. I quite understand the point of view
which you have taken up and hope that economic subjects will
receive the necessary attention and publicity. [14]

With reference to the draft proposal for a British Committee to
explore the ground, which I sent you with my letter of March 31st
[15], I discussed this with Lord Burnham on Monday. He said that
he agreed with the necessity for some such action but was
convinced, from his own experience of public life in this country,
that an informal Committee, even if blessed by the Prime Minister,
would achieve but little.

We explored the idea further and came to the conclusion that if,
at the Imperial Conference, the Imperial Economic Committee was
placed on a sounder basis and the British representation was
improved, H.M. Government might be urged to appoint a Standing
Committee to consider, from a British point of view, the need for
speeding up Empire Development. Such a Committee might consist of
the British representatives on the Imperial Economic Committee and
several other persons, of whom Lord Burnham said he would gladly
consider forming one.

Lord Burnham urged me to get an effective Committee of the younger
Conservative M.P.'s to consider the economic side of the Imperial
Conference and to ginger up the Government.

THE IMPERIAL ECONOMIC COMMITTEE AND DAIRY PRODUCE

Up to date I am unaware as to whether your Government has approved
the selection of Dairy Produce as the next subject for enquiry by
the Imperial Economic Committee. I am, however, anticipating your
approval. On April 9th and on April 12th I sent you the following
cables-
Reference Imperial Economic Committee I understand Canada has now
agreed as temporary measure to presence of Canadian representative
on Amery's consultative spending body. Anticipate proposed Dairy
Produce Enquiry will raise question of potential dangers to
consumer of New Zealand and Australian export Control legislation.

New Zealand Dairy Produce Board's policy more open to criticism
than Australian. Present personnel on Committee sympathetic to
your Government's policy with possible exception Chairman and Sir
Thomas Allen. [16] I propose asking London Agency Commonwealth
Dairy Produce Board to prepare preliminary memorandum on all
points of interest to Australian producers.

Your cable April 10th my reference meat and other products in my
cable March 31st misunderstood. [17] I intended to say that I
presumed British Government would include meat etc. in publicity
expenditure from Annual Grant. Reference proposed Dairy Produce
enquiry by Imperial Economic Committee hope you are arranging to
forward full information for Australian Representatives.

Information should inter alia include following points (r)
importance Australian Government attach to dairying from migration
standpoint (2) Estimated number of Dairy farmers (3) Density of
settlement in established Dairying areas (4) Possibilities of
expansion of industry (5) Steps being taken to improve efficiency
in production (6) Cost of production (7) Dairying and irrigation
(8) By-products of dairying, condensed milk, casein etc. (9)
Possibility development of pig products as complementary to butter
production (10) Extent to which product handled co-operatively.

Suggest large organizations might be asked to prepare memoranda to
be forwarded to Australian representatives. Information should be
posted at earliest possible date.

I am wondering who you will appoint as the other representatives
of Australia upon the Imperial Economic Committee for this
enquiry. From an Australian political point of view I regard the
Dairying Produce enquiry as being of the greatest importance and I
want to leave no stone unturned to see that we have all the data
for a complete and comprehensive report.

You may have considered some of the points on which I asked for
information in my cable as being wide of the mark. For instance,
the query as to the estimated number of Dairy producers.

My point is that I want to follow up the inferences in the Fruit
Report by demonstrating the importance to Australia and New
Zealand, to migration, and thus to Great Britain, of assistance to
such industries as give close settlement conditions.

I thought the pig industry dealt with most inadequately in the
Meat Report and I should like to bring it in again as an adjunct
to Dairying. I happen to remember that when the poll of Dairy
Producers was taken, Mulvany [18] told me that your Government
sent out 100,000 ballot papers, so I assume it is possible to give
these figures. I am very anxious that you should send me
particulars as to the steps being taken to improve the efficiency
of production. When Sir Robert Gibson's [19] Committee considered
Dairy Produce in Melbourne in 1924, we were all impressed with the
low standards of efficiency in the industry and I want information
to show that the production side is being resolutely tackled.

As regards criticisms of Export Control legislation, I think the
Committee will take a sound line on this point.

I am enclosing a further personal letter to you on this subject.

[20]

Yours sincerely,
F. L. MCDOUGALL


1 J. B. Greene, Sydney businessman; younger brother of Senator Sir
Walter Massy Greene, several times a Minister in the Bruce and
Lyons inter-war governments.

2 Parliamentary Under-Secretary for Dominion Affairs.

3 H. Broadley.

4 Subsidiary reports were not printed.

5 Sir Halford Mackinder.

6 Proprietor of the Daily Telegraph; President of the Empire Press
Union.

7 Published 17 April.

8 Leopold Amery, Secretary for the Colonies and for Dominion
Affairs.

9 'Economic Problems of the Empire. V.-Tariff Policy and
Preference', Times Imperial and Foreign Trade and Engineering
Supplement, 10 April, largely reiterated McDougall's arguments in
Sheltered Markets. The table showed a large percentage increase in
export figures of several European countries for 1923-25, while
British exports remained almost static.

10 On 3 March, H. E. Pratten, Australian Minister for Trade and
Customs, referred to a resolution hostile to the new tariff passed
by the N. S.W. Country Traders' Association and reported in the
Times Imperial and Foreign Trade and Engineering Supplement on 7
November 1925. The leading article demonstrated that views
favourable to the new tariff had been quoted in the same article.

11 The paper deplored the reduction of the grant to 500 000 for
1926-27.

12 Stanley Baldwin's Conservative government lost its outright
majority in the General Election of 6 December 1923, but Baldwin
continued as Prime Minister of a minority government until he lost
a vote of confidence on 22 January 1924.

13 Grazier; Member of the House of Representatives 1906-13;

Senator 1917-22; Agent-General for Victoria in London.

14 The cable read in part: 'We are acquiescing in economic
questions being dealt with at Imperial Conference and stating that
we are doing so because we consider economic questions even more
important now than in 1923 and that recommendations will have
greater authority if made by Imperial Conference'. The cable is on
file AA:CP317/8, bundle 2.

15 Letter 61.

16 Director of the Co-operative Wholesale Society; United Kingdom
representative on the Imperial Economic Committee.

17 The text of the cable is given in Letter 61. In the cable cited
in note 14 it was explained that advertising expenditure under a
publicity scheme financed jointly by the Dairy Produce and Dried
Fruits Control Boards and the Australian Fruit Canners Association
would be confined to their products.

18 E. J. Mulvany, Secretary of the Department of Markets and
Migration.

19 Manufacturer and company director; Chairman of the Federal
Economy Commission 1917-21; appointed Chairman of the Commonwealth
Bank, 14 September 1926.

20 Letter 63.


Last Updated: 11 September 2013
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