demand. The secondary industries are mainly established in the great manufacturing States of New South Wales and Victoria, so that it is to be anticipated that the successful development of primary industries in the other States will, so far as its indirect results are concerned, be reflected in increased immigration into New South Wales and Victoria. It follows that the primary pro- ducing States are likely to have difficulty in absorbing their prescribed quotas of migrants, though the obligation to do so will remain upon them, while on the other hand the manufacturing States being able to point to the increased immigration within their borders will be able to satisfy their obligations in the matter with- out difficulty, really as the result of what has been done in other States. 39. These considerations lead us to suggest that it might be well if it were possible to secure the concurrence of all the Governments concerned, that is to say, the British Government, the Common- wealth Government and the State Governments, in such an amend- ment of the Agreement as would provide that the funds made available under it might be used not only for schemes involving the acceptance of specific numbers of migrants by the individual States, but also for work calculated to promote migration into Australia generally. 40. This question raises a subject which appears to us to be of the greatest importance and to go far beyond the implications of the £34,000,000 Agreement itself. We have been much struck by what we have seen and heard of the comparatively small degree to which intensive use is made of the land already in occupation in Australia. Schemes are being projected for extensive develop- ment by pushing railway and road construction at heavy capital cost into territory as yet unsettled, while it would seem that more Intensive use of land already settled or partially settled might, at far less cost, be productive of a greater increase in population and in wealth production than the extensive schemes are likely to yield. 41. We enter here upon the wide field of scientific research and of the increase of technical knowledge as applied to wealth produc- tion. We have already said that we cordially welcome the estab- lishment of the Council for Scientific and Industrial Research in this sphere. Like the Development and Migration Commission in its sphere, the Council for Scientific and Industrial Research with its able and energetic personnel is capable of being a nucleus for the combination and co-ordination of the scientific and technical knowledge already available in many quarters in the different States of Australia and a potent force for the increase of the sum of that knowledge through the work of its several scientific sections, “ach under a highly qualified head and each acting in harmony With all other existing institutions having the same object, such a8 the State Departments of Agriculture, the Universities and the Possible ymendment of the Aoreement. Intensive as against axtensive levelop- ment, Che Council ‘or Scientific and Indust- rial Research ind the nerease of echnical znowledge.