In furtherance of the declared policy of fostering and developing
friendly relations in countries on the Pacific, Australia has
established a legation at Washington, and as you are aware has
taken the formal steps to establish one immediately at Tokyo.
We have ample evidence that Japan was disappointed that the Tokyo
and Washington Legations were not established simultaneously.
For some time the Consul-General for China , acting on definite
instructions from his Government, has been pressing for the
establishment of a legation in China simultaneously with that in
Japan. He has renewed representations during the past week. 
We have given consideration to this question in our review of the
general Far Eastern and Pacific situation this week.
From the aspect of post war economic and political conditions, on
the assumption that a substantial portion of China will remain
under the control of the National Government and by virtue of our
adherence to the League resolution to do nothing to weaken the
position of China in the face of Japanese aggression, a case can
be made out for the establishment of such a legation.
On the other hand, we feel that such a step may be resented by
Japan, and would nullify the favourable effect of the decision in
regard to Tokyo.
It has already been suggested by Japan that Australia should
recognise the new order in Eastern Asia, as specifically referring
to the Wang Ching Wei Government. 
The position in the Far East is so unstable at the moment that it
is not inconceivable that the United Kingdom Government itself may
have to consider the advisability of recognising the latter
We do not wish to take any action which may irritate Japan while
at the same time we have a friendly feeling in relation to China.
Before arriving at a definite conclusion, I would be glad to have
the views of the United Kingdom Government on the question.
1 Dr C. J. Pao.
2 See Documents on Australian Foreign Policy 1937-49, vol. III,
3 Wang Ching-wei established a government under Japanese
sponsorship at Nanking on 30 March.
[AA: A3196, 1940, 0.4336]