My dear Prime Minister,

IMPERIAL ECONOMIC COMMITTEE

The first meeting since the Imperial Conference occurred on
Tuesday, the 8th March. There was a fairly full attendance of
members and Sir David Chadwick, the new Secretary, was present.

The Chairman [1] occupied about an hour and a quarter on a general
and rather desultory statement concerning the existing situation.

It appears that, although your proposals to Amery [2] as regards
the future work of the Committee were circulated to all the
Delegations at the Conference before they left London and all the
Delegations, with the exception of Canada, gave their approval to
your proposals, yet owing to some oversight, no official
communication was sent to India and no communication was sent to
the Ministry of Agriculture in this country until this week. Up to
the present moment Canada has not sent any reply to the terms of
reference and naturally no official reply has yet been received
from India.

On the assumption that favorable replies are received from Canada
and India, the Committee decided to commence its new work on Fish
and also to work on Pig Products and Tobacco in the hope that
reports on these three subjects might be issued before August.

They also decided to complete the work that has already been
commenced on Eggs and on Honey.

At my suggestion a Sub-Committee is to be set up to consider
procedure and also to consider the preparation of a list of raw
materials for the consideration of the Overseas Governments and
also to make preliminary suggestions as regards the surveys of
manufacturing products which were tentatively approved by the
Imperial Conference.

I understand that cables are to be sent immediately to the various
Governments of the Empire, asking their approval of fish, pig
products and tobacco being the immediate subjects to be considered
by the Imperial Economic Committee.

I have no idea what action you are likely to take as regards a
second Australian representative. I understand that Professor Watt
[3], who holds the Chair of Agriculture in the Sydney University,
is expected to arrive in this country in the course of the next
few days and, if he intends to remain here for some months, he
might, at least temporarily, be a very good selection.

EMPIRE MARKETING BOARD

On the 16th February last I sent you a copy of a confidential
report which I had prepared for the information of Mr. Julius. [4]
I have now prepared an appendix to this confidential report on the
decisions taken in regard to research by the Empire Marketing
Board during the month of February. I am enclosing a copy for your
information and I venture to suggest that you might find it
desirable to have this attached to the first report as I intend to
send to Julius confidentially a monthly summary shewing the actual
decisions taken by the Board and I think you would find such a
file occasionally useful for purposes of reference.

ATTACKS ON AUSTRALIAN TARIFF POLICY

The 'Manchester Daily Despatch', a nominally Conservative paper
with a very large circulation, has launched an extremely severe
attack on Australian tariff policy. Their first leading article
stated that 'the Commonwealth of Australia adopted a more
vindictive policy towards British goods than any other country in
the world'. There were a number of other extreme inaccuracies and
the whole spirit of the leading article was malicious. I drafted
an answer which Sir Joseph Cook [5] signed but which the paper has
so far not published. With the concurrence of the High
Commissioner, I sent the article together with a copy of Sir
Joseph's reply to Sir Philip Cunliffe-Lister [6] with an
expression of the High Commissioner's hope that Cunliffe-Lister
would take an early opportunity of exposing the arrant folly of
articles of this nature. I am unable to enclose a copy of this
article but I attach a copy of Sir Joseph's reply.

In Monday's issue of the paper another violent attack occurred, in
which the last report of the Australian Tariff Board is rather
effectively quoted. The concluding portions of the last Tariff
Board report afford extremely useful ammunition to the British
free trader in attacking Australian fiscal policy. [7]

DR. HADEN GUEST

I enclose a well informed and interesting cutting from the
'Manchester Guardian' on the subject of Dr. Haden Guest's action
and its results. [8]

LOW [9] CARTOON

I feel sure that you will be very much amused at the enclosed
cartoon by Low, which was printed in the 'Star'. It is, I think,
one of the best of Low's efforts.

POLITICAL SITUATION

Last night a debate occurred in the House of Commons on the
subject of Unemployment and I am enclosing the debate with two
speeches
marked as being worth your attention.

There is a very general feeling that the Government is rapidly
losing ground in the country, owing to the lack of any
constructive ideas as regards trade. It is generally felt that the
economic policy of the Government [is] dictated by the Treasurer
of the Bank of England, and that it is directed much more towards
financial ends than to any special methods for restoration of
industry. There is the usual talk about the long delayed recovery
in the export trade being about to occur but I am a little
doubtful as to whether this is based on anything more than hope.

The speeches of two of my friends-R. G. Boothby [10] and Tom
Johnston [11]-although delivered from opposite sides of the House,
do give some idea of the resentment that is being felt at the
Government's policy of inaction.

PARLIAMENTARY ANSWERS

I enclose a few Parliamentary answers and questions which I think
will be of interest to you.

Yours sincerely,
F. L. MCDOUGALL

P.S. I enclose Hansard report of the House of Commons debate on
'Anglo-Russian Relations' to which I think you would like to have
your
attention drawn.