Dear Mr. Bruce,

By the time this letter reaches you only three weeks will remain
before you will be leaving Australia for the Imperial Conference.

I know that you will be extremely busy during the last few weeks
before leaving Melbourne and I propose to make my communication to
you comparatively brief, but to write to you at considerable
length so as to catch your boat at Fremantle and at Colombo.

IMPERIAL CONFERENCE

The Canadian dissolution [1] creates an awkward situation for the
Imperial Conference. I gather, however, that the British
Government proposes to carry on with their idea of the Imperial
Conference, and as it now appears probable that the Canadian
election will take place in the middle of September, Canada will
be fully represented before the Conference has lasted very long.

On the economic side of Imperial affairs Canada is much the most
difficult of the Imperial partners and I rather strongly feel that
if the other parts of the Empire can agree on a policy for the
stimulation of Imperial development, we should not allow ourselves
to be held up owing to any attitude Canada may choose to adopt. On
economic affairs I feel that Canada is likely to prove unwilling
to state her intentions fully to co-operate with us. If the rest
of the Empire decides to go ahead she will come in the picture
with some face-saving reservation such as that she can only regard
Imperial economic organizations as acting in an ad hoc capacity
for certain definite enquiries.

A policy at the Imperial Conference of deferring entirely to
Canada's point of view would, I think, be less effective than a
decision to go ahead, leaving it to Canada to co-operate to as
large or small extent as may seem good to herself.

EMPIRE PARLIAMENTARY DELEGATION

At Tuesday's meeting of the Imperial Economic Committee Sir Sydney
Henn [2] asked whether the Committee would like him to go as the
official representative of the Committee during his visit to
Australia, and during his subsequent visits to India and East
Africa. It was agreed that this would be desirable and Sir Sydney
has undertaken to speak on behalf of the Committee during his
trip.

I attended a meeting yesterday of the delegates who are going to
Australia. Sir Howard d'Egville [3] had asked me to talk to them
about some of the economic problems of Australia. Practically the
whole time of the meeting was taken up by a discussion on whether
top hats should be taken and what system should be adopted for the
tipping of stewards and railway servants.

Sir Sydney Henn, in view of his position on the Imperial Economic
Committee, is to be regarded as the main spokesman on the economic
side of the British delegation.

THE IMPERIAL ECONOMIC COMMITTEE AND THE EMPIRE MARKETING BOARD

I enclose a copy of a memorandum which I drafted this week on the
relationship of the Empire Marketing Board to the Imperial
Economic Committee. I am sending a copy of this memorandum to Mr.

Ormsby-Gore [4] and Major Walter Elliot. [5] The memorandum is
self-explanatory but I should be particularly glad if you would
give the points raised your careful consideration. The inter-
relationship of these two bodies is of the greatest importance and
I propose to forward to you, either at Fremantle or Colombo, a
carefully considered statement of my views as to the possibilities
of developing the Imperial Economic Committee.

IMPERIAL ECONOMIC COMMITTEE

Sir Halford Mackinder [6] immensely enjoys the Privy
Councillorship which has been given him in the Birthday Honours.

He also regards it as considerably increasing the status of the
Imperial Committees over which he is Chairman.

In reply to the congratulations of the Committee, he made an
admirable short speech outlining their consultative functions.

We have now started work on the drafting of the Dairy Produce
Report which will, I hope, be a useful and interesting document.

Mr. Clifford [7] has, unfortunately, been unable to attend this
week's meetings. On Tuesday Mr. A. E. Gough, O.B.E., General
Manager of the Overseas Farmers' Co-operative Federations Ltd.

gave extremely interesting evidence to the Committee, the members
agreeing that it was the most important evidence yet placed before
them.

EMPIRE MARKETING BOARD

The meeting of the full Board occurred yesterday, and the draft
report to the Governments of the Empire was considered and
approved. A long discussion occurred over the application of the
British Ministry of Agriculture for a 40,000 grant. This was
finally approved.

Lord Burnham [8] has consented to serve on the Publicity
Committee, and so have Mr. Frederick Pick [9], Publicity Director
of the Underground Railway System of London, and Mr. Stobart [10],
one of the chief officials in the British Broadcasting Co. The
first meeting is being held this afternoon.

I enclose, for your information, the draft notes of a poster
scheme which will be considered at this afternoon's meeting of the
Committee. This draft is largely based on the idea I worked out a
few months ago and on which I sent you some notes.

EDUCATIONAL PROPAGANDA

The Committee of Unionist Members of Parliament asked me to let
them have some notes on the economic side of the Imperial
Conference. I therefore drafted a memorandum for their personal
consideration. I enclose a copy herewith.

The Committee is quite keen to make progress on educational
publicity in the House and in the Press but find that as long as
the coal stoppage lasts it is extremely difficult to rouse any
interest in any other subject.

AUSTRALIAN JOINT PUBLICITY SCHEME [11]

I had hoped to have given you a brief account of how this scheme
is developing but feel it is too early to say anything which will
be of any interest or value to you. Mr. Hyland [12] has spent two
long evenings at my club for the purpose of discussing the
problems, but very naturally he is finding it necessary to feel
his way very cautiously. I hope to let you have some further
information about this in a few weeks time.

EXPORT CONTROL

The hostility shown by the trade to the operations of the New
Zealand Co-operative Federation in its policy of storing butter in
London for a number of months for the purpose of holding it in

expectation of a rise in the market has led to a very considerable
degree of criticism of Export Control legislation as a whole. I
understand that Mr. Coates [13] extremely nervous of the way in
which the New Zealand Export Control Board intends to act when it
comes into operation on the 1st of September. I expect Mr. Coates
will exercise a restraining influence on the extremists on the
Board.

If this happens, it will be all to the good. I am quite convinced
that in general Export Control policy is sound. That it can be
exercised without causing any antagonism from the trade is shown
by the New Zealand Meat Control Board, by the Australian Dried
Fruits Export Control Board and the Australian Dairy Produce
Export Control Board.

It is only when it is proposed to use the statutory powers vested
in Control Boards to attempt mass speculation on behalf of the
producers that really serious difficulties are likely to arise.

DEBATES IN PARLIAMENT

I would like to draw your attention to a rather interesting first
reading speech by Dr. Haden Guest [14] on introducing a Bill into
the House of Commons designed to enable labour to share in the
benefits obtained in certain industries from the operation of
safeguarding duties. I also draw your attention to a report of a
speech by the same member on the report stage of the Finance Bill
(Stabilization of Preference Clause). [15]

PARLIAMENTARY QUESTIONS

I enclose certain Parliamentary questions which are of interest on
the subject of the Imperial Economic Committee and the Empire
Marketing Board.

Yours sincerely,
F. L. MCDOUGALL