My dear Prime Minister,

DELEGATION TO AUSTRALIA

On Friday, February 11th, I saw Mr. Amery [1] on this subject. He
seemed quite sure that the Cabinet would raise no objections but
thought some mild Treasury opposition was probable.

He agreed with the general idea that the Delegation, instead of
being regarded as an isolated event, would best be regarded as
part of a considered plan for Anglo-Australian cooperation for the
more rapid development of the Commonwealth. Mr. Amery said that
when he discussed the delegation with you, you had made it clear
that development rather than migration was the object and that you
had indicated that it was not primarily a matter for the Oversea
Settlement Committee. [2] He had, therefore, been somewhat
surprised when he saw the 'Times' report of your speech in Sydney
in which you appeared to have placed the main emphasis upon
migration.

The cabled message via myself again showed that, in your mind, the
chief emphasis was upon markets and development. [3]

Mr. Amery was, therefore, waiting for a reply to his cable on the
terms of reference [4] before going any further with the question
of the delegation.

I pointed out to Mr. Amery that, as Australia was now the most
important potential market in the world for British manufacturing
goods, I therefore felt that the British Government could make out
a wonderfully strong case for the despatch of a delegation.

Properly stated, the idea of this delegation could be made to show
this country the genuine intention of the Government to seek every
chance of cooperation with the Dominions in developmental work.

After I had left Mr. Amery, it occurred to me that you might feel
it desirable for me to hand Mr. Amery that memorandum on British
Cooperation in Australian Development which I gave you just before
you left. I therefore included a suggestion to that effect in the
cable I sent you through Casey's [5] office, the text of which was
as follows:-

Following from McDougall begins: Reference delegation. Amery does
not anticipate difficulties with Cabinet but awaits reply his
cable to you on terms of reference. No steps yet taken sound
persons for delegation. Owing existing and anticipated criticism
of delegation on grounds that persons previously unacquainted with
Australia cannot produce constructive proposals on Australian
problems in short time would suggest that whole scheme be regarded
as effort towards closer British cooperation on Australian
development with object of directing British brains, energy and
capital towards Australia to mutual benefit both countries.

Made personal suggestion to Amery that delegation be part of
sustained plan rather than an isolated event and that delegates
after return here should consent act in advisory capacity on
British and Australian cooperation. Can I give Amery copy my
memorandum on British cooperation in Australian development as
being in general harmony your ideas. Suggest you reply through
Casey's office. Have arranged accordingly.

On Tuesday morning I received your reply as follows:-

Following for McDougall-Your telegram 11th February, will be
sending suggestion for purposes mission in a few days. Do not
think it desirable hand Amery copy of your memorandum on
cooperation-Bruce. [6]

I have seen Sir William Clark, of the Department of Overseas
Trade, who says that he is certain that the delegation idea will
be warmly supported by both the Board of Trade, the Department of
Overseas Trade and the leading commercial and industrial people
here.

I have seen Mr. Amery once or twice recently and, although I have
nothing very definite to go upon, I have formed the impression
that he is not quite so enthusiastic about Australia as he was
before the Conference. Casey, I find, also had the same slight
impression. It seems to me just possible that Mr. Amery was rather
disappointed that he was not enabled to play a larger personal
part at the Imperial Conference. This state of affairs, even if
true, is probably only a passing phase but it had occurred to me
that it might be useful, if you felt disposed, to write a personal
letter to Amery about the importance of Anglo-Australian
cooperation and in the letter to make some special reference to
the great work which he has done in educating people on the
importance of the Empire and suggest to him that Anglo-Australian
cooperation might form a working model of everything that he has
been striving for in the way of closer Imperial economic
connections.

I am seeing Sir Maurice Hankey [7] this afternoon and shall take
the opportunity of stressing the importance of British cooperation
in Australian development and for this purpose shall make use of a
graph, of which I enclose you a copy. It is, I think, the most
striking trade graph that I have ever seen.

In connection with the Delegation, it has occurred to me that, if
a man such as Faraker [8] could be attached to the Delegation in a
Secretarial capacity, a very useful purpose would be served.

Faraker would have every reason to make the report of such a
delegation a really valuable document and also one which would be
acceptable in Australia. You are aware that I have a very high
opinion of Faraker and it is a long time since he saw anything of
Australia. Naturally I shall keep this idea entirely to myself but
I should like to recommend it to your serious considerations. [9]

EMPIRE MARKETING BOARD

I am very happy to say that I received by this mail a charming
letter from Mr. Julius [10], the Chairman of the Commonwealth
Council for Scientific and Industrial Research, explaining that
neither he nor his Council had ever felt in the slightest degree
aggrieved that offers had been made by the Empire Marketing Board
to the Adelaide University without reference to the Council. [11]
He stated that the Council could not for one moment have expected
that either the Board or myself could have understood that it was
desirable to refer an offer of this sort to the Council.

Cables have this week been received from both the Adelaide
University and the Council accepting the Empire Marketing Board's
offer for a 50-50 contribution towards the establishment of
research into the mineral deficiencies of pasture at the Waite
Institute, Adelaide.

I have thought it desirable to draw up a very careful memorandum
on the Empire Marketing Board and Research for the information of
Mr. Julius and his colleagues. You, of course, have already been
closely in touch with this subject but I am enclosing a copy of my
memorandum to Mr. Julius because I feel that it is a useful
description and something which you would like to have beside you
for reference. I am also sending a copy to Mr. Paterson [12] for
his personal use but informing him that it should not be regarded
as for circulation in his Department.

IMPERIAL ECONOMIC COMMITTEE

I heard yesterday that, after long delay, Sir David Chadwick [13]
has accepted the Secretaryship of the Committee and he is dining
with me tonight in order to discuss our future activities.

The absence and slackness of Mackinder [14] and the delay in the
appointment of the Secretary will probably mean that the Committee
will hardly have done any useful work before Easter. This I very
much regret.

'LONDON WEEKLY'

I enclose copy of this journal.

Yours sincerely,
F. L. MCDOUGALL