From what I have gathered in conversation with C.¹ & from information received from home there is every likelihood that a big drive will be made at the forthcoming Imperial Conference by interested parties[:]

a) to make radical and far reaching alterations in the prevailing plans of Imperial Preference and,

b) to achieve at least the thin end of the wedge in a future comprehensive scheme of federation.

It is almost certain that suggestions will be made to carry the present plan of imperial preference very much further than at present and it is quite likely that such proposals may receive the support of influential dominions who may be materially affected in an advantageous way by the new proposals. Now the danger is that Ireland may have to take a certain attitude towards such proposals [and this] may create new difficulties between her fiscal policy and that of the Northern area.

My information is too hazy as yet to say very definitely what these proposals are likely to be but it is almost certain that they will be put forward with a view to prejudicing us in connection with the Boundary Commission.