My dear Prime Minister,

By the incoming mail I received your letter of April 15th [1] in
reply to mine raising the question of certificates for straw
packing. I have discreetly conveyed to the Federation of British
Industries that the manufacturers concerned should take steps to
bring their case forward in a convincing manner.

IMPERIAL CONFERENCE

Just before I went to Geneva, Sir Halford Mackinder [2], Sir David
Chadwick [3] and I had a talk about the Imperial Economic
Committee and the Imperial Conference. After some discussion as to
the widening of the Committee's terms of reference we got into a
discussion of the general economic side of the Conference.

We agreed that, owing to the Election, little Ministerial
attention was likely to be given to Conference subjects until the
Autumn but that then everyone would be anxious for plans. I
mentioned how little success I had achieved in trying to stir the
Board of Trade towards constructive thinking, and we all agreed
that an unofficial group, which would be prepared to devote some
time to exploring various lines of country, would be most useful
at the present stage.

We finally decided to try to get together a group consisting of
our three selves, Sir Basil Blackett [4], Philip Kerr [5], Sir
William Larke [6]and another industrialist, with perhaps later one
or two others, such as Hilton Young. [7] Chadwick undertook to try
and arrange for the formation of this group. If the idea matures
and proves fruitful, some useful suggestions may arise.

VESTEY'S ADVERTISEMENT

I am enclosing a curious advertisement inserted in Monday's
'Evening Standard' by Sir Edmund Vestey. [8] It is worth while
just glancing at it for Australia is placed in the forefront and
the whole letterpress reeks of fervid Imperialism. I rang up Sir
Gordon Campbell [9], of Weddel's to see if he knew anything about
the idea behind the advertisement. The reply was negative but I
learnt that Vestey was paying for the insertion of this
advertisement in ten leading papers. The total cost to Vestey will
be from 2,000 to 4,000, according to space and position.

THE EMPIRE AND THE ELECTION

There is no marked tendency in the floods of political oratory
going on here at present to devote any considerable proportion of
political speeches to Empire questions. This may be due to lack of
interest on the part of candidates, but more probably is caused by
a feeling that no very constructive Empire policy can be put
forward in simple words now that Imperial Preference is so limited
and other Empire development ideas have received so little
thought.

Maxton [10], with his International affiliations to the League
against Imperialism, is causing some embarrassment to MacDonald
[11] but I do not think he is taken very seriously.

I really believe that any party that had the courage to make
Empire Development their main plank and to preach what that could
mean to Great Britain would sweep the country. It is essential
that the Imperial Conference should succeed in placing the issues
so clearly before the country as to make such a political
programme become a definite probability.

I am enclosing a copy of the 'Times' report of Mr. Baldwin's
speech at Bradford. [12] This speech contains a lot of good sense
about rationalisation and safeguarding and some reference to
Empire Development. Baldwin's reference to Great Britain's
position as the chief exporting country is, however, hopelessly
wrong. The figures are as follows:-

Annual average 1925-27
Total exports % of manufacturers
%
Great Britain 711,844,000 80.6
U.S.A. 982,212,000 54.6

I am writing to Tom Jones [13], of the Cabinet Secretariat,
pointing out that S. B. should not make such mistakes.

LABOUR TACTICS IN THE ELECTION

This morning's 'Times' reported a rather extraordinary piece of
tactics apparently emanating from the Labour Headquarters. The
Party has circulated in some constituencies a pamphlet entitled 'A
Call to Christians' and has pointed out that, in the polling
booths, voters have to make the sign of the cross and that that
should make them solemnly consider whether they are supporting the
Party which has the most Christian principle. I enclose the
'Times' cutting.

PREPARATORY WORK FOR IMPERIAL CONFERENCE

For the last three months I have [been] trying to complete a
general statement on the necessity for Great Britain to develop,
in her own economic interests, a policy of Imperial Development.

This is at last nearing completion and I very much hope that I
shall be able to forward a copy to you by the next mail. My
present intention is to suggest to the Empire Marketing Board that
this memorandum, which will be of some length and has been very
carefully prepared, should be published by the Board as one of
their grey papers. [14] I think it would serve as a useful
stimulus to thought at this stage of the preparatory work for the
Conference.

The moment this is completed and out of the way, I shall start on
the examination of British industries with the idea of attempting
to assess in each of the more important cases the value of
Australian, and indeed other Imperial Preferences to the
industries concerned.

Yesterday I suggested to Karl Walter, the Secretary of the Horace
Plunkett Foundation [15], that he should consider the preparation
of some short but clear statements on agricultural economic policy
in various parts of the world which might prove useful
documentation to assist the deliberations of the Imperial
Conference. He thought the idea was a happy one and promised to
consider what he thought the Horace Plunkett Foundation could do.

Yours sincerely,
F. L. MCDOUGALL