Dear Mr. Bruce,

Since last mail I have had two short preliminary talks with Sir
Mark Sheldon [1] about Imperial Economic Committee matters. He is
very busily engaged with other matters at the moment but I
anticipate that next week we shall be able to get close to the
subject.

EDUCATIONAL WORK IN GREAT BRITAIN

I enclose a short memorandum which I have written on this subject
drawing attention to two different plans. My own view is that the
most effective way in which this all-important work could be
achieved would be by an Australian body such as the proposed
Australian Producers Advisory Committee being created in London
and being placed in possession of sufficient funds to subsidise
such a man as Dr. Haden Guest [2] to get the right propaganda
inserted in the places to which he had special access. If,
however, the creation of such a body is improbable in the near
future, it would be of great interest privately to know how you
regard the two schemes.

I have discussed Dr. Haden Guest's plan with Mr. Casey [3] who
agrees with me that it has very attractive elements.

I am sending a copy of the memorandum to Herbert Brookes [4] and
to him only. I am doing this for two reasons. Firstly because
Brookes is intensely interested in the question and, secondly,
because if you felt that it was desirable that any action should
be taken in Australia, you might feel inclined to ask Herbert
Brookes to undertake interesting producers' organizations. All
that I shall say to H.B. is that I have sent you a copy.

LABOUR AND FISCAL POLICY

The week's developments have been interesting. Dr. Haden Guest
brought the question of the attitude of the Labour Party on the
subject of Safeguarding [5] before the weekly meeting of the
Parliamentary Labour Party. Dr. Guest's motion was heavily
defeated but Mr. Wheatley [6] then took up the running and moved
for a Committee to consider the attitude of the Parliamentary
Party to the importation of sweated goods. This resolution was
carried unanimously and a Committee of seven, including Wheatley,
Snowden [7], Webb [8], Henderson [9], Tom Shaw [10] and Tom
Johnston, were appointed. Five ex-Cabinet Ministers in a Committee
of seven.

ROYAL COMMISSION ON FOOD PRICES

A most interesting debate occurred on this subject last night. I
have cut out the Hansard Report, which is enclosed. If you have
time I would suggest that you should read the speeches of Lansbury
[11] and Johnston which were both very able and Cunliffe-Lister's
[12] answer.

THE GREEK COMMERCIAL TREATY

Last Friday Amery [13] casually mentioned that a Commercial Treaty
with Greece was under discussion. I communicated with Casey who
had not been informed thereof. On Monday I was lunching with Sir
Sydney Chapman [14] and asked him for particulars. He told me that
the subject was certainly under discussion and that, as Mr.

Baldwin's [15] pledges prevented any increase of taxes, the
British Government was prepared to give Greece a guarantee against
an increase in the duty on currants for a limited period.

I asked whether you were being consulted, but that Chapman did not
appear to know. I determined to cable you to-day but Casey has now
rung me up to say that the Colonial Office is cabling you and
asking for your comment on the Dried Fruit portions of the
proposed Treaty. My view is that, in view of the developments on
sweated imports in the Labour Party, any arrangement with Greece
on currants should be subject to denunciation on six months'
notice.

If the proposed Treaty is to that effect, I will not cable, but if
it is not, I shall communicate my view in regard to the Labour
development, rendering six months' notice desirable. [16]

WHEAT INSURANCE

I am enclosing a copy of an article from the Morning Post of March
4th on a scheme whereby farmers could insure against the price of
wheat being below the cost of production.

If such a scheme were found workable, it would be an
extraordinarily interesting development. Australian Insurance
Companies are fairly go ahead and I think you might care to
discuss the possibilities of some such idea.

If you could formulate a workable scheme on these lines for
Australia, it would be extremely useful. Should you desire me to
do so, I will collect all the information I can from the promoter
Ruggles-Brise [17], whom I know, and from Insurance Companies. If
you regard the idea as being of sufficient interest, you might
care to cable me to get fuller information.

I am especially interested because I have been turning over the
idea of the utilization of some portions of the 1,000,000 as
insurance premiums either to provide cover for finance or to
insure long term contracts with Dominion Boards against loss. [18]

Yours sincerely,
F. L. MCDOUGALL