210 Sir Earle Page, Minister for Commerce, to Mr J. A. Lyons, Prime Minister

Cablegram unnumbered LONDON, 25 May 1938, 7.00 p.m.

CONFIDENTIAL

We have considered your telegram 25th May [1] containing text of letter received from the Japanese Consul-General [2] on the question of the iron ore embargo. We think that reply should not go into detailed explanation but should be limited to essential points. We suggest reply in the following terms:-

(1) This decision has been taken solely on the grounds of our national requirements and it is not to be regarded as being discriminatory against any country.

(2) That the Government of any country must accept the responsibility of deciding what its own national requirements are and that this fact is universally recognised internationally.

(3) To the extent that any individual Japanese interests are affected by the decision an offer of compensation has been made and is repeated.

PAGE

1 Not printed; See AA : A1608, C47/1/4, iii. Lyons asked the Australian Ministers in London to comment on the Japanese Consul- General's letter and to hand a copy of it to the U.K. Government.

2 Document 208.

[AA : A981, AUSTRALIA 90]