166 Mr R. G. Casey, Minister to the United States, to Department of External Affairs

Cablegram 311 WASHINGTON, 8 October 1940, 10.28 p.m.

SECRET

My telegram No. 305. [1]

Department of Agriculture have announced publicly abolition as from today of subsidies previously paid on exports of wheat and wheat flour from Pacific coast to China including Manchukuo and Hong Kong. No such [subsidies] [2] have been paid on export of these commodities to Japan.

In communicating this decision State Department emphasized the desirability of Australia taking [parallel] action with the United States by re[f]raining from granting any subsidies, credits or special facilities in respect of exports of these commodities from Australia to Japan, China or Hong Kong. They ask early advice as to future policy of His Majesty's Government in the Commonwealth of Australia in this connection.

CASEY

1 Dispatched 7 October. See file AA:A3300, 74.

2 Words in square brackets have been corrected from the Washington copy on file AA:A3300, 74.

[AA:A981, TRADE 68, iv]