217 Mr E. E. Longfield Lloyd, Australian Government Commissioner in Japan, to Prime Minister's Department

Cablegram unnumbered TOKYO, 15 June 1938, 11.40 p.m.

Iron Ore. I have received a call from Baron Ito, President of the Japanese Mining Company, accompanied by a mining colleague. After brief talk they quietly informed me that they understood the situation and as the Commonwealth decision is recognisable as a matter of Australian domestic policy there is nothing more to be said. This unexciting acquiescence in the situation by the only local entity which could be materially concerned with the question is in notable contrast to the extravagant Japanese official comments although these latter are quite possibly uttered with an eye to the methods of certain secretive societies here for which reason it is suggested the Baron's remarks be regarded as not for publication. The visitors did not mention compensation but possibly had in mind introduction of a conciliatory atmosphere in which any contemplated claims might have easier results for them.

Further protests if any thus do not call for much notice.

[AA : A981, AUSTRALIA 90]