I have seen your telegrams 62  and 109  to Dominions Office and Dominions Office telegram No. 110  to you and gathered from your telegram 109 that you are satisfied with the position.
British Embassy has almost concluded its negotiations with Nippon Yusen Kaisha and anticipates that the scheme will be accepted.
Success if secured will be due to their having been able to make it clear to the Japanese shipping interests that unless they accept the scheme their vessels will continue to experience delay in obtaining facilities anywhere under British control. If the N.Y.K. accepts, it is probable that other Japanese shipping companies will do the same. I understand that the utmost importance is attached to bringing the Japanese steamship companies into the ship warrant system and I therefore urge that in the event of any further representations by the Japanese Consul-General  there should be no suggestion of any relaxation.
With regard to Consul-General's protest, I would be glad to be informed whether his statement that Japanese Government guarantees non-enemy destination of all exports from Australia to Japan is correct.