Department of Foreign Affairs and Trade

Dear Mr. Bruce,

Since I wrote to you at Port Said, there has been no very definite
development. Mr. Ramsay MacDonald [1], in his statement on
February 12th, stated that the Economic Conference resolutions
would be placed before the House and that the Government would
indicate their views on each point. [2]

I am enclosing a memorandum (most of the points of which you have
already seen) which I have sent to Messrs. Clynes [3], Snowden
[4], Webb [5] and Thomas. [6]

There is no definite news as to the Government's intentions on
agriculture but I gather that Lord Parmoor [7] has so far proved a
serious stumbling block on the Cabinet Agricultural Committee
especially as regards stabilization. On this subject I am
obtaining a precis of a new U.S.A. Bill, of which I hope to be
able to send you a copy next mail. [8] On February 12th I had an
interview with Sir Arthur Balfour [9] and Mr. Stanley Machin [10],
of the Associated British Chamber of Commerce. I handed them a
copy of the enclosed memorandum and I must say that your phrase
'abysmal ignorance' is justified even with these leaders of
Commerce. They were amazed at what I told them about Australian
trade and want me to visit local Chambers to explain the effect of
our preference. I feel quite sure that you can truthfully claim to
have done more to educate the business community of Britain in
Preference than anyone else and I feel perfectly certain that if
the seeds you have so effectively sown are cultivated, the
knowledge will spread until the business community will really
demand reciprocal measures to preserve their valuable Dominion
preferences.

On February 12th I saw Mr. Robert Donald [11], who is Chairman of
the New Imperial Wireless Committee. Mr. Donald is persona grata
with MacDonald and probably the best avenue through which to
influence him. I discussed preference and the Economic Committee
with Mr. Donald, who is keenly sympathetic. [12]

On February 13th I had lunch with the Rt. Hon. J. C. Davidson.
[13] We had a most interesting yarn and he became very interested
in the case that I assured him could be made of Empire trade. He
will put it before Baldwin [14] and I hope it will lead to my
getting directly to Baldwin. I told Davidson that I did not want
to deal through Hewins [15] and the Empire Development Union
because my experience of Hewins was that he felt he knew
everything and was not accessible to new data or new ideas.
Davidson expects an election before the Autumn. We discussed the
formation of a private committee to formulate a real Empire
Development policy for the Unionists.

On February 13th a private members resolution caused a debate on
Protection with references to preference. Sir P. Lloyd-Greame [16]
made especial reference to the Economic Committee and urged that
the marketing problems of both British and Dominion agriculture
should be referred to it. This is amusing because Lloyd-Greame
never suggested anything so intelligent at the Conference. I
understand that Australia House is sending you the Hansards and I
am, therefore, not sending this particular Hansard but you will
find Lloyd-Greame's speech in the Debate of February 13th
interesting. [17] I suggest, with all deference, that it might be
a good move for you to connect British with Dominion Agricultural
problems when speaking on the Imperial Economic Committee.
I am enclosing another memorandum which shows in a very striking
way the value of Australia as a market. I think that this may be
of some interest to you.

Everywhere one goes one finds that your speeches have sunk in and
done more for Empire trade than has ever been done before.

Yours sincerely,
F. L. MCDOUGALL