My dear Prime Minister,

CANADA

My Canadian friends have been sending me copies of letters
received from Canada, newspaper cuttings, etc., all indicative of
the very great impression that your speeches made while you were
over there.

The 'Times' today published a very interesting article from a
Canadian Correspondent on 'Dominion Status' in which the effect of
your speeches on that subject was also clearly indicated. [1] You
will, of course, be receiving a copy of this cutting through the
ordinary channels.

ICELAND

A very amusing occurrence was reported to the Poster Sub-Committee
of the Empire Marketing Board this week. A letter was received
from Iceland asking the Board for a copy of the large Highways of
Empire Map Poster. The writer, who was an Icelandic citizen,
explained that he desired to post the map in Reykjavik, because
there were so many people in Iceland who felt that they did not
receive a square deal from Denmark and thought that Iceland would
be happier and freer if it was a part of the British Empire!!

INTERNATIONAL ECONOMIC CONFERENCE

A week ago the Editor of the 'Times Trade Supplement' [2] asked me
whether I would write an unsigned article on the Dominion attitude
towards the forthcoming International Economic Conference, to be
held in Geneva. [3] After considering the matter, I came to the
conclusion that, as the British Chambers of Commerce seemed to be
tending towards rather warmly supporting this somewhat dangerous
Conference, it was desirable that a clear statement of the
Dominion point of view should be made available. I therefore
consented to write the article on condition of it being strictly
anonymous. After writing it, I submitted a copy to Casey [4] for
his comments. I am enclosing a typewritten copy of the article
which I believe will appear in tomorrow's issue. [5]

I hope that you will agree with the way in which I stated the case
and will also agree that it was desirable that the case should be
stated.

LABOUR AND TME EMPIRE

The news that Mr. Theodore [6] is likely to enter the Federal
Parliament in the near future and may become the Leader of the
Federal Labor Party is very interesting. This news has led me to
consider in what way it would be most easily possible to keep the
Federal Labor Party informed as to the development of the Empire
spirit and Empire ideas in the British Labour Party. It seems to
me that, Gepp [7], through his Commission and especially through
Gunn [8], would be in a good position to see that this occurs and
I therefore propose to forward to Gepp from time to time cuttings
giving articles or speeches by Members of the Labour Party in this
country in which they associate themselves with some form of
Empire policy. I anticipate that you will agree that it is
desirable that something of this sort should be done but if you do
not agree, perhaps you will inform Gepp that he can, in these
circumstances, keep the information to himself

BRITISH COOPERATION IN AUSTRALIAN DEVELOPMENTS

You will remember that I handed you a memorandum on the subject of
British cooperation on Australian developments. You stated that
you would look at this memorandum on the 'Majestic' and perhaps
decide as to whether it was desirable for you to send a memorandum
on those lines to Baldwin [9] and Amery. [10] As I have had no
word as to your decision in the matter, I shall be glad to know
something about it. I think the memorandum has a good number of
useful points in it and if you have decided against using it
yourself, I should like to be able to use it here. I should,
therefore, be glad to know, either by letter or by cable, what
your decision has been. [11]

'LONDON WEEKLY'

I enclose a copy of the fourth issue of the 'London Weekly'. In it
you will find a very interesting appreciation of Australia by W.

Mackinder [12] M.P., one of the Labour M.P.'s who was on the
Empire Parliamentary Delegation. This is well worth reading.

IMPERIAL CONFERENCE

I am enclosing a decidedly interesting article in to-day's
'Manchester Guardian Commercial' on the economic side of the work
of the Imperial Conference. [13]

27th January, 1927

GEOPHYSICAL PROSPECTING

A rather curious situation has arisen in connection with this
matter. Gepp wrote to the Oversea Settlement Committee [14] making
definite proposals for cooperation between the Oversea Settlement
Committee and the D. & M. Commission for the prosecution of
geophysical prospecting in Australia with special reference to the
West Australian Goldfields. His proposal was that each Body should
find 25,000 in order that this work might be thoroughly tried
out.

The Oversea Settlement Committee met on Tuesday and I understand
that while the whole Committee, including Amery, were very
sympathetic to the proposal and were anxious to see the British
Government cooperating in the matter, yet they came to the
conclusion that it would be stretching the Oversea Settlement Act
too far to meet this expenditure from that fund. At Amery's
direction the papers were therefore handed to Tallents [15] of the
Empire Marketing Board and my present understanding of the
situation is that Amery is going to ask the Research Committee of
the Empire Marketing Board to consider the matter with a view to
the Empire Marketing Board meeting 50% of the expense in place of
the Oversea Settlement Committee.

Of course this involves a new departure for the Empire Marketing
Board. Up to the present moment we have made no grants except in
connection with foodstuffs. We feel, however, that the decisions
of the Imperial Conference to extend the terms of reference to the
Imperial Economic Committee have made it possible for the Empire
Marketing Board to consider using its vote to assist Empire
production and marketing of any form of primary product. [16]

Last night I had a long talk with Tallents about the situation and
he is quite favourable to the idea of the Empire Marketing Board
using a small percentage of its funds for purposes such as
geophysical prospecting. The matter will come before the Research
Committee on the 1st February and possibly before the Board on the
2nd February.

IMPERIAL ECONOMIC COMMITTEE

I regret to have again to inform you that, during the week, no
progress has been made. I do not think that Chadwick [17] has yet
made up his mind whether he is going to accept the Secretaryship
and Mackinder [18] is still out of England.

Yours sincerely,
F. L. MCDOUGALL