My dear Prime Minister,

BUSINESS MISSION

The Business Mission is leaving London this afternoon, to join the
'Mooltan' at Marseilles, Sir Ernest Clark [1] having already left
from Tilbury. I spent Monday and Tuesday evening with Arthur
Duckham [2], in order to give him an opportunity of raising any
points that occurred to his mind. This proved quite useful, for I
was able to rub in quite a number of points which it will be
useful for him to have in mind.

Yesterday I had Malcolm [3] to lunch, and we had a long talk about
the general work of the Mission. I think the position as regards
the education of the Business Mission before its departure is
roughly as followsThe Mission collectively has seen a very
considerable number of people, and in spite of the fact that many
British trade associations have come forward to express their
grievances against the Australian Tariff, the members of the
Mission already seem impressed with the benefits which British
industry secures under Preference, and have therefore not been
unduly influenced by the complaints of the West Riding of
Yorkshire, or of Leicester.

They were very much impressed by the evidence given by Dr. Orr 4,
and are looking forward to appreciating for themselves the immense
possibilities of pastoral and agricultural development which
Australia can achieve in the near future.

So far as individual members of the Mission are concerned, I
gather that Sir Ernest Clark and Malcolm have probably read all
the papers that have been put before the Mission, but that neither
Duckham nor Hugo Hirst [5] have had time to do so. Duckham in
particular, as the head of a highly successful business which up
to the present has been rather a one man show, has found that he
has had to work at terrific pressure on his own affairs in order
to be free to be away for six months. Each member of the Mission
has, however, strongly impressed on me the Mission's determination
to use the voyage to Australia to study thoroughly the masses of
information which they have received, and to discuss them
collectively.

ECONOMIC ACTIVITIES OF THE LEAGUE OF NATIONS

Casey [6] arranged that I should be shown a copy of the cable
received here on Monday from yourself to Senator McLachlan [7]
dealing with this subject. I was very glad to see it, because it
gives me your reaction to all the letters which I have sent you on
the subject since the meeting of the Economic Consultative
Committee. After reading this cable I had prepared a very
carefully considered speech which I shall give to Officer [8] to
take to Geneva as my suggestion as to the line which the
Australian Delegation should take, should the matter come
prominently before the Assembly or the second Committee. This
suggested speech may not be ready to despatch by this mail, and if
this is the case I will send it forward next week.

I have seen Sir Sydney Chapman [9], who will of course be at
Geneva throughout the Assembly to advise the British Delegation on
all economic subjects, and I find that he is quite prepared to
agree with the general point of view which I have been taking on
League economic matters. I have arranged with Chapman that Keith
Officer can call to see him as often as he likes, to get from
Chapman any information that he may need for the Australian
Delegation.

I am hoping that Senator McLachlan will not feel that he wants me
to go to Geneva, because I am anxiously looking forward to getting
a couple of weeks' holiday during September, and a summons to
Geneva would upset that idea.

RESEARCH IN THE PASTORAL INDUSTRIES

Casey showed me a copy of the cable which you sent through him to
Walter Elliot. [10] Elliot is at present away on holiday on the
French Riviera, and will not be back for two weeks. I understand
that Casey has forwarded the cable to Elliot, and I shall write to
him on the subject.

I am going to Aberdeen on Friday to have two or three days with
Orr, and to go very thoroughly into the whole question of pastoral
research in Australia. Orr is preparing a report on his Australian
visit for the Empire Marketing Board and C.S.I.R., and my visit
will therefore be particularly appropriate.

I have received a personal cable from Rivett ]11], telling me that
the C.S.I.R. feel they could secure Theiler's services for a five-
year period, provided the Colonial Office has no serious
objection. Personally, I think the Colonial Office will strongly
object to completely losing Theiler for five years. [12] If this
should prove to be the case, the solution-which I believe could be
arranged-would be for C.S.I.R. to appoint both Theiler and Orr as
consultants, with a definite arrangement whereby each man would
spend, say, nine months of every two years in Australia.

Yours sincerely,
F. L. MCDOUGALL