Dear Mr. Bruce,

Several interesting developments have occurred during the past
week. In my last letter I omitted to tell you that Sir Sydney
Chapman, the Permanent Secretary of the Board of Trade, strongly
advised me not to prepare a general circular on the preference
question for Members of the House of Commons.

On February 14th, the Rt. Hon. L. S. Amery [1] attended the
meeting of the Council of the British Empire Producers'
Organization [2] and a full discussion occurred on the best
methods of influencing the House of Commons and it was decided
that the Organization should take a deputation to the Chancellor
of the Exchequer [3] (if he would receive it) and also prepare a
statement to circulate to the Members of the House. I am providing
the Organization with a good number of facts and figures to
fortify their statement.

The Hon. F. C. Wade, the Agent-General for British Columbia, has
suddenly started to take an active part in pressing for the
fulfilment of the preference proposals particularly in relation to
apples and canned salmon. I had a long interview with him on
February 16th and I am enclosing herewith two memoranda that he
has prepared and is circulating to the Members of the House of
Commons and the House of Lords. He also prepared another
memorandum on canned fish which I do not think would be of any
particular interest to you. I was told by several members of the
Liberal Party that Mr. Wade's action in circularising the House is
resented and that [a] question on the propriety of his attitude
would be asked.

On February 18th the Times published a statement that Lord
Beaucham [4] had decided to move in the House of Lords on
Wednesday, the 20th, to draw attention to the high tariffs levied
on British goods in India and in the Dominions. I regarded this as
a most excellent opportunity for educational propaganda and got
into touch with Mr. J. C. C. Davidson [5] and Mr L. S. Amery on
the subject. They decided to try to arrange to get Lord Birkenhead
[6] to undertake the work of dealing with Lord Beauchamp and
wanted me to place the necessary information before Lord
Birkenhead. Unfortunately Lord Birkenhead has been away and the
matter was referred to Lord Curzon [7] who decided that the Duke
of Devonshire, as the late Secretary of State for the Colonies,
was the proper man. Yesterday I met Lord Curzon and the Duke of
Devonshire in the former's private room in the House of Lords and
fully discussed the question. The Duke has asked me to assist him
further to-day but I fear that he will not be able to make
anything like the effective speech on the subject that would have
been possible had Lord Birkenhead been available.

On February 18th I had a long discussion with Mr. Amery on the
subject of propaganda. I supplied him with a list of 73 articles
of British exports in which Australia in 1922 purchased larger
values of the aggregate purchases of all foreign countries. Mr.

Amery has asked the Unionist Headquarters to prepare a list of
questions to the President of the Board of Trade [8] based on this
list. This should be very useful propaganda both in the House and
in the country.

I mentioned to Mr. Amery the idea of my preparing a short booklet
on the subject of the value of Empire Trade and Mr. Amery is quite
anxious that I should do so.

The chief difficulty in the way of preparing a book of this
description is time. I am, however, making a start in collecting
the necessary information and I enclose, for your information, a
tentative synopsis of contents.

On February 19th, under the auspices of Sir Howard d'Egville [9],
I met Dr. Chapple [10], M.P., who is the Chairman of the newly
constituted Liberal Colonial group. This was a particularly
interesting conversation. I gathered from Dr. Chapple that the
Liberal Party is very nervous of being branded as the chief anti-
Imperial Party in England and that Mr. Asquith [11] has decided
that it is important that the Liberals should provide themselves
with an Imperial Economic Policy. Dr. Chapple impressed upon me
that the Liberal Party regarded themselves as tied to free trade
but that they were prepared to explore every other avenue by which
actual preference could be given to the Dominions. He suggested
preferential treatment in docks, harbour facilities, shipping,
freights, assistance in credits and encouragement of orderly
marketing. I drew his attention to the Imperial Economic Committee
and Dr. Chapple stated that he was keenly aware of the possible
benefits of this [to the] Party and had already put down a
question in the House to ask the Government its intentions as
regards implementing this Committee. I stressed to Dr. Chapple the
importance of the preference proposals and I gathered from him
that he was personally in favour of the whole of the preference
proposals being implemented but that he did not think his party
would go with him as far as that but I rather gathered, although
he was decidedly non-committal on the tariff preference question,
that even the Liberals will think twice before voting against the
proposals that mean no increase in taxation.

I have promised to keep in touch with Dr. Chapple and to meet any
Members of his Liberal Group who desire to discuss economic policy
and the Empire.

I cannot help regarding this change in attitude on the part of the
Liberals as being very significant. Dr. Chapple told me that
Members of the Party bitterly resented the accusation of being
anti-Imperial.

If, as I believe, your educational speeches have caused this
change of heart, or if not change of heart at least nervousness,
about Imperial matters in the Liberal Party, you have indeed
achieved something very remarkable.

I enclose a copy of a memorandum which I have prepared for Sir
Howard d'Egville of the Empire Parliamentary Association. I am
providing Sir Howard with 50 copies of this memorandum which he
can give to Members of the House who desire information.

Mr. Amery asked me to draw your attention to the enclosed cutting
from the Morning Post. I have marked the portions that Mr. Amery
particularly desired you to notice; the most important point being
that the Party has adopted a resolution asking that the settlement
of British agricultural problems should be connected with those of
the Dominions. [12] It. appears from this that the idea of Empire
agriculture has taken root and this again must be almost entirely
attributed to your own teaching.

I am forwarding herewith copy of the McNary-Haugen Bill [13] which
you may find of some interest.

Yours sincerely,
F. L. MCDOUGALL

[Handwritten postscript]

I enclose under separate cover a copy of Production as it gives
the text of my lecture at the Colonial Institute, which may be of
interest to you. [14]