Item 3 - Letter from Arthur Stanley to Edwin Montagu

State Government House, Melbourne.—Congratulates him on his appointment to the Ministry of Munitions, where he supposes his priorities will be to encourage production and prevent strikes. The production of shells has been abandoned in Australia, since it was never likely to be economically successful and was problematic from a military point of view. Legislation has been ineffective in preventing strikes there, and he believes the proposed new laws will be no better. Discusses aspects of the dock-labourers’ and bakers’ strikes. He believes there would be fewer strikes if in one or two cases the battle was fought to a finish, and if they repealed the Conciliation Acts, but it would be dangerous for him to express this view publicly. He is not eager for his appointment to be extended, as he finds it ‘a silly sort of job’, in which he has to look for work. Since the State Government is engaged with domestic matters which do not interest the Colonial Office there is little contact between them, and little need for a link between the Secretary of State and the State ministries. He therefore feels he is meddling in affairs which do not concern him. The Governor-General, on the other hand, is the intermediary between the Commonwealth and the home Government, the function of which overlap much more, and his existence is valued more, because ministers recognise that he can help or hinder them in his dispatches. The question of the existence of State Governors will have to be discussed soon, though not yet. He supposes some good can be done by passive resistance, but he wants a more active position and intends to resign when appropriate. Wonders whether the news of recent successes means the end of the war is in sight. The stories of riots and starvation in Berlin seem doubtful, but it does appear that they [the Allies] are taking the initiative on both sides of Germany, and that Russia is taking numerous prisoners, even if the numbers are exaggerated. Asks Montagu to send such news as he can without being indiscreet. He would also like to hear from Venetia.