My dear Prime Minister,

Yesterday I received a cable in cypher from you, of which the text
read as follows:-

Please convey following as personal private message from me to
Amery [1] begins: If the economic cooperation with Britain in
development of Australia to be brought about and British trade in
Australia maintained essential proposed visit from first class
British business and financial brains should take place early as
possible to consult with Government Development Commission and
Leaders Commerce and Industry here. America is becoming
increasingly interested in Australia and is sending constant
stream first class people out here to investigate possibilities of
initiating large projects with American capital and brains and
also to stimulate consumption American products Australia to
assist them in their problem of finding oversea markets for
increased production. Unless immediate counter steps are taken it
is inevitable that somewhat similar position will arise here to
that existing in Canada where bulk large developments are being
financed with American money and controlled by Americans. This can
only be countered by visit of really first class people such as is
contemplated and I strongly urge earliest possible steps should be
taken-Bruce.

I immediately got in touch with Mr. Amery's Private Secretary and
tried to arrange an appointment. Unfortunately the Secretary of
State was so crowded with important engagements that I cannot see
him until tomorrow (Friday) at 11.30 a.m. I therefore forwarded a
copy of your cable to him together with a personal and
confidential letter. I shall see him tomorrow and will cable you
immediately after my interview.

DELEGATION TO AUSTRALIA

I have heard a number of criticisms of the idea of a delegation
from this country to Australia. They are mostly based on the
assumption that no man, however eminent, would be able to obtain a
really useful idea of Australian problems in three or four months
and would, therefore, not be in a position to offer very sound
advice.

The view has been expressed to me that, under these circumstances,
to despatch a delegation would be a waste of public money. It has
been quite easy to immediately counter any such argument by
reference to the immense importance to Great Britain of securing
cooperation between this country and Australia.

Under the circumstances I regret that I was not more fully
informed while you and Mr. Gepp [2] were in London just exactly
what you had in your mind in reference to this delegation. Mr.

Gepp did discuss the idea with me on two or three occasions and I
made one or two suggestions which he seemed to think well of but
you will remember I was not present at the conference held the day
before you left London between yourself and Mr. Amery in your room
at Australia House and I have had no information as regards the
final form which you desire this delegation to take.

When I discussed the matter with Gepp, I strongly suggested to him
that any delegation despatched by the British Government to
consider development and migration should include one prominent
member of the Labour Party. To this idea he warmly agreed.

I further suggested that he should try to arrange with the British
Government that any delegation that went to Australia should, on
its return from Australia, be constituted as an Advisory Committee
on Australian developmental problems and that it should meet at
regular, perhaps monthy, intervals, with myself and a
representative of the Oversea Settlement Committee [3] present, in
order to continue to keep in touch with Australian developmental
problems and to advise on any point which the D. & M. Commission
might desire advice upon, To this idea Mr. Gepp also agreed.

It seems to me that if the idea of this delegation is to be given
real weight and significance, it will be necessary to make it
clear that it is not merely a visit to Australia for three or four
months' consultation on our developmental problems but the
definite first move towards the economic cooperation between Great
Britain and Australia and therefore the delegates on their return
should be prepared to continue to act in an advisory capacity.

I feel so confident of your agreement with this point of view that
I shall make this suggestion to Mr. Amery tomorrow not, of course,
as coming from you but as my own idea of the real significance of
this delegation. I shall in fact try to make Mr. Amery fully
realise the immense possibilities which this idea of the
delegation gives to an important move in the direction of inter-
Imperial economic Cooperation. [4]

Australia is today the one Dominion really ready for economic
cooperation with Great Britain-the one Dominion that is in fact
asking Great Britain to cooperate. If immediate action can be
taken to give effect to cooperation between Great Britain and
Australia during the three years that must elapse before the next
imperial Conference, cooperation between Great Britain and
Australia should provide an object lesson to the rest of the
Empire as to the advantages of such work and this should lay the
basis for a very important economic development at the next
Imperial Conference.

DELEGATION FROM MOTOR MANUFACTURERS

Col. Hacking [5], the Secretary of the Society of Motor
Manufacturers & Traders Ltd., called on me today to discuss the
plans of the delegation. We had a useful talk and he has invited
me to lunch with the other two members of the Delegation for a
further discussion of points. I think that Col. Hacking is getting
a pretty good grasp of the situation. I shall spare no pains to
convince the delegation that they have a wonderful opportunity if
they are prepared to make proper use of it. I hope that they will
go to Australia fully charged with the importance of associating
their plans so as to secure the fullest possible cooperation of
the Commonwealth Government.

I have tried to give Hacking some idea of how to put a case in
such a way as not to conflict with Australian national sentiment.

'LONDON WEEKLY'

I enclose copy of the 'London Weekly' dated 5th February, 1927.

CABLE COMMUNICATIONS

With reference to the cable which I received from you yesterday
and to the method which I shall have to adopt in reply, you will
of course realise that it is a somewhat delicate matter for me to
cable through the ordinary Australia House channels on a subject
such as this without consulting the High Commissioner. [6] The
fact that you sent this message to me to be conveyed to Mr. Amery
as a personal and private message shows that you did not intend me
to consult the High Commissioner on the matter.

I have, therefore, seen Casey [7] and have arranged with him that
in such circumstances I can use his channel of communication in
order to send a cable message to you.

I would suggest that it might be convenient that, if you had in
future any similar personal cables to send to me, you might use
the channels of communication through Casey's office. I understand
from Casey that, after he leaves, he has made arrangements whereby
the channels of communication will still be open. [8]

I am naturally anxious to maintain the friendliest possible
relations with the High Commissioner and to obviate anything that
might disturb this.

Yours sincerely,
F. L. MCDOUGALL