My dear Prime Minister,

DEBATE ON DOMINIONS OFFICE

Last night in the House of Commons occurred the first debate on
the work of the Imperial Conference. [1] Although you will be
receiving the Hansard in the ordinary way, I am enclosing a copy
in which I have marked certain portions as being of special
interest from the economic point of view.

I would particularly direct your attention to the speech of my
friend Tom Johnston [2], not only because of its intrinsic
interest but also because it is an extremely interesting
indication of the way in which a Front bench Labour man is today
able to speak about Empire Trade.

I would also draw your attention to the speech of Mr. Ramsden. [3]
Ramsden is a whole-hearted and keen Imperialist and is prepared to
preach the importance of Empire Trade both in and out of season.

His remarks, therefore, about the effect of the extremely high
tariffs in West Yorkshire are, I suggest, worthy of special
attention.

While this debate was going on in the House, in a Committee Room
downstairs the Compatriots Club was dining and also discussing the
work of the Imperial Conference and Ormsby-Gore [4] wound up the
discussion with one of the best speeches that I have heard on the
whole general modern conception of what the Empire means. I wish
it had been possible to have had a note taken of his speech, it
was so very good.

MR. G. A. JULIUS [5]

Naturally I am seeing a great deal of Mr. Julius; in fact I am
squeezing every possible half hour in order to assist him to get
into rapid touch with all the interests in London that he ought to
meet.

I am very hopeful that, as a result of his visit, he and I will be
able to frame a series of problems for cooperation between the
Commonwealth Council for Scientific & Industrial Research and the
Empire Marketing Board, which will mean that, from the Annual
Grant, Australia will receive substantial help.

To my very great surprise, I found that Mr. Julius on his arrival
was not aware that it would be competent for the C.C.S.I.R. to
make the proposed Tropical Research Station in Queensland a
Station particularly devoted to animal problems. He made it clear
to me that the hesitation of the C.C.S.I.R. had been due to the
fact that they thought that a Tropical Agricultural Research
Station must be devoted to agricultural crops in the limited
sense; in other words to field crops and not to animal problems.

When he found that the whole conception held by the Research
Grants Committee of the Empire Marketing Board was that Queensland
should specialize on animal problems, he stated that had this been
clearly realised in Australia, the scheme would have been even
more warmly welcomed than had actually been the case. My surprise
at the C.C.S.I.R. having failed to realise this is due to the fact
that in the discussions that occurred here between yourself, Gepp
[6], Walter Elliot [7] and myself, the idea of throwing the
emphasis of the Queensland Station on to animal problems was very
definitely and clearly envisaged.

MR. JULIUS AND EFFICIENCY OF SECONDARY INDUSTRIES

About a month ago I wrote to you on the subject of the Australian
Tariff Policy and drew your attention to Mr. Julius's Hobart
address. [8] Since his arrival, he has given me a copy of another
address made since he became Chairman of the C.C.S.I.R. entitled
'Production Efficiency'. This address is extremely valuable and as
it is possible that you have not seen it, I am enclosing a copy.

It appears to me that this address strongly supports the general
line of country that it is to Australia's direct interest to
substitute a policy of selected protection for the existing policy
of inclusive protection.

DRIED FRUIT LUNCHEON

I enclose a copy of a verbatim report of the speeches made at the
Dried Fruit luncheon and suggest that they are sufficiently
amusing and also perhaps sufficiently important to be worth your
while to read them.

It was, I think you will agree, something of an achievement to
obtain from such prominent members of the Government and
opposition as Birkenhead [9] and Thomas [10] definite declarations
that the Government, and any alternative Government, would
continue to support the Australian dried fruit industry.

EMPIRE MARKETING BOARD

In my last letter I referred to the attack which the Treasury had
launched before the Cabinet Economy Committee. So far as I am able
to glean, this attack has made no progress at all and is likely to
be heavily defeated.

EXPORT OF PEDIGREE STOCK

I have not been worrying you with any reference to this particular
subject but I have received several cables from Australia urging
the importance of an early decision as to the form of assistance
which the Empire Marketing Board would be prepared to give to the
export of pedigree cattle.

On the 25th of June I received a cable from the Prime Minister's
Department phrased in such a way as to make me think it came from
you. I, therefore, replied to you setting out in considerable
detail the present position. I am now enclosing a confidential
note prepared by the Secretariat of the Empire Marketing Board on
the subject, which may be of use to you in dealing with the
matter.

I would also specially refer to my letter addressed to the
Secretary, Prime Minister's Department, dated 2nd June. This
letter, together with my cable and the note herewith enclosed,
should enable you to see the position quite clearly. A Special
Sub-Committee is being set up by the Research Grants Committee to
formulate definite plans along the lines suggested in the note.

Its first meeting will be held on Monday next and I have agreed to
serve. [11]

WINE DUTIES

I have today sent you a cable informing you that the British
Government is likely to accept the amendment to the Finance Bill
to which I referred in my letter of the 23rd of June. [12]

Before despatching this cable, I thought it wise to show the draft
to Mr. Pratten [13], who told me that he entirely approved.

FEDERATION OF BRITISH INDUSTRIES

Tomorrow I am going to Manchester to speak to the Manchester
Branch of the Federation of British Industries on 'Australia as a
market'. I am enclosing the outline of my address as. it may be of
interest to you.

Yours sincerely,
F. L. MCDOUGALL