Dear Mr. Bruce,

IMPERIAL ECONOMIC COMMITTEE

The Committee is making good progress with the Dairy Produce
enquiry. So far as Butter and Cheese are concerned, we have nearly
completed our list of witnesses and shall proceed to the drafting
of a report in about ten days time. Once again the Committee has
insisted upon my serving on the Drafting Sub-Committee.

I have found Mr. Clifford [1] a useful colleague and I am happy to
state that we find ourselves in complete agreement in our views on
the Export Control policy and upon the type of recommendations
that we desire to see in the report.

I found the memorandum you sent to me extremely useful. By its aid
I was able to overcome the Chairman's [2] reluctance to bring into
the report consideration of questions of improvement of
production.

From the evidence given and from the general attitude of members,
it has already become apparent that the Committee will bless
Export Control in so far as control means (a) the regulation of
shipments (b) improvement of quality (c) supervision of marketing
in London-in fact orderly marketing as a whole, but that, on the
other hand, it will sound a warning against the speculative
holding of butter in cold storage for long periods in this country
on behalf of producers. In other words the methods employed by the
Australian Board will be blessed but the intentions credited to
the New Zealand Board will be criticised.

As soon as this point becomes quite certain I shall suggest to Mr.

Clifford that we should cable this information to you because I
have heard rumours that some members of the Australian Dairy Board
are looking with favour on the New Zealand methods.

THE FRUIT REPORT

I am enclosing a small selection of the press comments upon this
report. I have marked one or two places for your attention.

I would especially ask you to glance through the article from
'Forward', Mr. Tom Johnston's [3] labour weekly. I suppose one can
say that the report has had a good press, but I do not think the
newspapers have caught the essential points very well. This is
largely due to the very inadequate speech which Mackinder made to
the press representatives on the day of issue of the report. He
emphasised the non-essential and left the Imperial aspects in the
background.

I was very pleased to see a cabled report of a speech of yours in
which you stated that the Fruit Report fully justified the
establishment of the Imperial Economic Committee.

THE EMPIRE MARKETING BOARD

The preliminary work in connection with this Board is requiring a
very great deal of thought and of consultation. I am delighted to
find in Major Walter Elliot M.P., the Under-Secretary for
Scotland, a most satisfactory colleague and in fact ally.

Elliot, Ormsby-Gore [4] and myself envisage the problems of
Research, and publicity from the same angles and together I feel
sure that we shall be able to shape a policy for the Board which
will be effective. The staff so far appointed are good men. I
arranged that E. M. H. Lloyd [5] (the Stabilization expert) should
be one of the staff, and the Permament Head S.G. Tallents [6] is
an able and keen fellow also.

Publicity

I enclose, for your personal information, a copy of the proposals
made to the Board by the small Sub-Committee. These proposals have
now been accepted by the whole Board.

At yesterday's meeting Amery [7] announced that certain of the
gentlemen whom he suggested should be asked to serve on the
Publicity Committee had accepted but that he had not yet been able
to get in touch with Lord Burnham. [8]

It was decided that the Chair of the Publicity Committee should be
taken by a Minister and Mr. Ormsby-Gore was selected for the
purpose; Sir William Clark, the Head of the Department of Overseas
Trade; Sir Thomas Allen, of the Co-operative Wholesale Society,
and Mr. Lindsay [9] and Mr. W. S. Crawford [10] were placed on the
Committee and then Mr. Amery stated that he felt that it was
essential that I should serve. I told the Board that I would
prefer not to do so as I was anxious to serve on the Research
Committee but Amery, Major Elliot and several other members of the
Board, including Crawford, all insisted and I reluctantly
consented.

It would, of course, be very useful for the Australian joint
Publicity Scheme that I should be on this Publicity Committee of
the Empire Marketing Board but I feel that I am getting almost
overloaded with work.

Research

The Research Committee have not yet formulated their report. Major
Elliot, who is the Chairman, felt that it was necessary to explore
the ground very thoroughly and he therefore invited the leading
men of the various Research Departments to meet the Committee at
dinner in the House of Commons. We sat down at 8.o and finished
our discussion at 12.45 a.m. The general effect of the discussion
was to show that there are equally serious vested interests in
scientific research as there are in commerce and that if the best
use is to be made of the annual grant, it will be necessary for
the Empire Marketing Board, through its Research Committee, to
obtain definite control of the funds to be utilised in research.

It also became very clear that it was going to be necessary for
some person, who clearly understood the whole situation from a
Dominion standpoint, to serve on the Committee and be prepared to
tell Ministers quite frankly how certain proposals would be viewed
overseas.

I came away from the dinner rather alarmed. The next day I had a
very long discussion with Major Elliot which cleared the situation
up in a very satisfactory manner. Elliot, not having been
connected with any of the work of the Imperial Economic Committee
and never having read its Reports until the Empire Marketing Board
was appointed, had not got a clear idea of its intentions. He now
realises the position and I think that we shall be able to
formulate our proposals this week.

We have set up a Committee on tropical fruits under the
Chairmanship of Sir Edward Davson [11], on which I am also
serving, but I do not anticipate that this Committee will occupy
much of my time.

A further Committee has been set up to carry out the
recommendations of the Imperial Economic Committee in regard to
the risk of deterioration in fruit shipped from the Dominions to
Great Britain. We put the Canadian Representative [12] on this
Committee and no other member of the Marketing Board.

I enclose copy of the official announcement of the formation of
the Empire Marketing Board from the 'Times'. [13]

PARLIAMENTARY QUESTIONS

You will have realised that, from time to time, I make use of
Members of Parliament in order to get questions asked which I
think will have a wide publicity value and assist in the education
of people in this country as to the importance of Empire trade. I
particularly draw your attention to a question and supplementary
asked by Mr. Tom Johnston M.P. which, together with Amery's
replies, make extremely good educational propaganda. This question
and answer received wide publicity throughout the entire press.

I may incidentally say that I am finding Mr. Tom Johnston
extremely helpful. As I have told you before, while he is taking
the liveliest interest in Imperial affairs, he is interpreting
them in language that left-wing Labour men can understand and
sympathise with.

MERCHANDISE MARKS BILL [14]

I sent you a cable on the 15th of May [15] in reference to the
optional clause in the Merchandise Marks Bill and suggested that
you should cable the British Government. I understand that up to
the present time the British Government has not received any cable
from you and I therefore assume that you did not see your way to
act in the direction which I suggested.

The Bill is having a fairly rough time in Committee but the
Government is credited with the intention of forcing the Bill
through Parliament during this session.

EMPIRE PROPAGANDA

In my last letter I told you that I was trying to form a
Conservative Group pledged to do everything in their power to
prepare the ground for the economic side of the Imperial
Conference.

Since I wrote, this Group has definitely been formed and has a
very good personnel consisting of Mr. E. Ramsden, M.P., Captain
Eden [16] M.P., R. J. Boothby [17] M.P., Major the Hon. Oliver
Stanley M.P., Col. the Hon. Angus McDonnell M.P. and Mr. Luke
Thompson M.P. This Group adopted a programme, of which I enclose a
copy.

I think you will agree that it is a useful programme and provided
the members of the group really work hard to secure public
attention to these points, a great deal of useful work will be
done.

ECONOMIC PROBLEMS OF THE EMPIRE

I enclose four further articles from the 'Times Trade Supplement'
on the 'Economic problems of the Empire'. [18]

I enclose Press reports of the speeches by Mr. Snowden [19] and of
a speech by Mr. Amery. I have marked in blue pencil the portions
in which I think you would be interested.

DRIED FRUIT LUNCHEON

The London Agency of the Dried Fruit Board gave a very successful
luncheon at Australia House to about 130 guests, of whom a large
majority consisted of persons interested in the Dried Fruit trade.

I think you may be interested to see a copy of the Menu and I
would draw your attention to the two quotations from speeches made
by Cobden and by yourself. [20] Mr. Amery made a very good speech
but Mr. Clynes [21], who was the only other speaker, was even
better. Clynes quoted your statement about Empire Agriculture very
effectively.

I also enclose copy of a pamphlet on the Australian dried fruit
industry, which was distributed to the guests at the luncheon and
which has since been sent to the whole of the wholesale and retail
trade in Great Britain. The last three pages of this pamphlet may
be of some interest to you.

EMPIRE PARLIAMENTARY DELEGATION

I have not yet seen a complete list of the British Members of
Parliament who are going on the Empire Parliamentary Delegation.

Up to the present I only know some of their names. As soon as I
get a complete list, I will write fully to you about it giving
some indication of the men whom I should regard as being
particularly worth while to have looked after in Australia.

Sir Sydney Henn, M.P., one of the Members of the Imperial Economic
Committee, is going. He is a Conservative Free trader, immensely
keen upon the Empire and a very good friend of mine. Col. the Hon.

Angus McDonnell, another close personal friend, is also going.

McDonnell will prove the life of the party and will be immensely
popular in Australia as he is here. From the Labour side, the
selection is not strikingly interesting, although if it proved
possible to impress on the Rt. Hon. Arthur Henderson [22] the
importance of Empire trade, a very useful purpose will have been
served. Another important visitor is Mr. A. V. Alexander, M.P.,
who was Parliamentary Secretary to the Board of Trade in the
Labour Administration and is the leader of the Co-operative
interests in Parliament.

As I said before, I will write to you fully a separate letter
dealing with this Delegation as soon as I know the complete list
of names.

Yours sincerely,
F. L. MCDOUGALL