My dear Prime Minister,

It was a pleasant surprise to receive your letter of the 5th May
[1] which you wrote directly after receiving my letter of the 25th
March. [2] As you say I must not, and in fact do not, anticipate
the maintenance of 'such an atmosphere of rectitude'.

I was glad to find the interest that you are personally taking in
the Australian National Travel Organization. [3] I think this
movement is distinctly along right lines.

The small group that I have formed here, consisting of Frank Pick
[4], Dougal Malcolm [5], Gervas Huxley [6], T. Tallents [7] and
myself, will be only too glad to advise in any way in which our
services may be helpful.

I am taking up with Trumble [8] and Duffy [9] the question of the
deplorable use which is at present made of the windows at
Australia House. They are, I think without exception, the worst in
London and the publicity value of the island site is at present
completely lost. I am rather hoping that the powers that be here
will think it a good plan to offer these windows to the Australian
National Travel Organization but it would probably be best for any
suggestions in that direction to come officially from the High
Commissioner [10] rather than from me.

In the latter part of your letter you refer to the feeling that
some propaganda should be carried on in the Dominions advocating
the purchase of Empire goods. I quite understand and agree with
your reply to Amery [11] on this subject but you have not told him
what you thought about my quite modest suggestion that the Empire
Marketing Board Poster campaign might be carried into the
Dominions at the cost of the Dominions themselves. You may
remember that I worked out some figures shewing that it would cost
Australia a very small sum to do something of this sort. Perhaps
you would be good enough to look at that matter again. I would not
for a moment suggest that we should take any action along those
lines prior to the Imperial Conference but it might be a useful
gesture to be able to make on that occasion if we found the
British people were really prepared to cooperate as heartily as
they can in schemes in which Australia is interested.

YOUR SPEECH AT THE VICTORIA CLUB LUNCHEON

The publicity in the British press in regard to this speech has
been quite a curious record. The day after the speech was
delivered, several papers made quite small allusions to it. These
interested me greatly but I was unable to discover what you had
really said. Then on Tuesday the 'Telegraph' published, as one of
their major features, a long telegram giving considerable detail
in regard to your speech. [12] That night I was dining with Niall
[13] who had among his guests Duckham [14], Hugo Hirst [15], Alan
Anderson [16], Sir Frank Clarke [17] and Andrew Williamson. [18]
Duckham and Hirst were both extremely interested in the
'Telegraph's' report of your speech and Duckham told me that he
was having copies sent to the Federation of British Industries,
the Association of Chambers of Commerce and in several other
directions. I also heard that the new President of the Board of
Trade [19] was greatly struck by what you are reported to have
said but I shall know more about this tonight, because Graham has
asked me to come and see him, probably to discuss the matter.

The report of your speech, coming just at the moment when it did,
was very happy and should reinforce, in a marked way, the efforts
which I am making to induce the Labour people to see their
opportunities. On this point I enclose a copy of my article, of
which I forwarded the typescript by last mail. I was very glad to
see that the daily edition of the 'Times' published an excellent
summary of this article. It has been well received and caused a
good deal of comment.

BUSINESS MISSION

The first meeting of the Committee to carry on the work of the
Business Mission was held on Tuesday last at Duckham's office.

Duckham was in the Chair and no other members of the Mission were
present on this preliminary occasion but Henderson [20], of the
Board of Trade, a man from the Department of Overseas Trade, and
myself discussed with Duckham a number of points. As I think I
have already told you, a whole time secretary has been appointed
by means of a small grant from the Empire Marketing Board funds.

It was decided to hold a second meeting with all the members of
the Mission present in the course of the next week or fortnight
and to invite Oscar Thompson [21] to attend. Meetings are also to
be arranged, one of which is to be attended by a representative of
the Federation of British Industries and another at which a
deputation from the Association of British Chambers of Commerce is
to come and discuss the position. I particularly asked that
arrangements should be made for Arthur Balfour [22] to be present
with the Delegation from the Chamber of Commerce. He is far in a
way the best man connected with that show.

I hope that, following on my conversation this evening with the
President of the Board of Trade, I shall, before next mail, have
been in touch with other members of the Labour Government and that
I shall then be able to give you a more adequate impression of the
way in which things are tending here.

Yours sincerely,
F. L. MCDOUGALL