Department of Foreign Affairs and Trade

My dear P.M.,

J. H. THOMAS [1]

I presented your letter of introduction to Mr. Thomas a day or so
ago and had an interesting conversation with him this morning.
With regard to the recent internal trouble in the Labour Party in
this country and the rumours that are current about a split
between the Radical and the Moderate wings of the party, Mr.
Thomas told me that I could tell you that the gravity of the
situation was much overstated by the press. He said that there was
a very distinct dispute going on but that there was no doubt that
it would end satisfactorily by the victory of the Moderates.
He said that when he returned from the Colonial Office to being
General Secretary of the National Union of Railwaymen he was a
little in doubt for some time as to whether he would carry the
same weight with the men as before, but he was pleased to say that
he is now firmly back in the saddle and is having no trouble at
all. He said his membership was half-a-million and his accumulated
funds three million pounds. He said it was the greatest Union in
the world and a great force in the country.

He was interested to hear how my work was developing and was glad,
although a little surprised, to learn that I had met no opposition
from the Foreign Office.

He realised that communication with the Dominions on foreign
affairs through the Colonial Office is clumsy and slow, and
considers that direct communication on matters strictly dealing
with foreign relations should be brought about between the Foreign
Office and Dominion Prime Ministers.

He said the Labour Party in this country is a strictly
imperialistic party as he thought they had proved during their
term of office. They view with some concern the growing coolness
in the attitude of Canada towards the Empire. He thinks it is
brought about through the influence of American money and American
thought.

He is of the opinion that another war within the next 20 years
would be the end of everything, and he agrees that it is difficult
to see how the Empire could emerge whole from another such ordeal.

He finds it difficult to visualise the Irish Free State and the
Union of South Africa justifying their place in the Empire in
another war.

He regards the League of Nations in very much the same light as
you do yourself-as the only lifeboat in a sea of trouble. He would
not put too big tasks up to it at present to strain the loyalty of
States members to it, but he would bolster it up and support it
and do everything in his power to increase its prestige.

He is greatly concerned at the 1 1/4 million of unemployed in this
country, a large number of whom are ex-soldiers.

He is watching the career of Mr. Theodore [2] with interest, and
said that he had told the King recently that he would one day be
Prime Minister of Australia.

He ended by saying that I might go to him at any time and ask him
what questions I like.

I am, Yours very truly,
R. G. CASEY