63 Commonwealth Government to Lord Cranborne, U.K. Secretary of State for Dominion Affairs
Cablegram 592  CANBERRA, 11 September 1941
Your circular M.259  and previous related telegrams.  The Commonwealth Government note that the measures adopted by the United Kingdom Government are being kept abreast of the steps taken in the United States and this accords with our views on the general policy towards Japan as outlined in our telegram No. 467 of 23rd July.  As regards Australian trade with Japan under freezing orders, no new machinery measures were necessary to bring Australia into line with the United Kingdom and the United States as the existing Exchange Control Regulations required commercial transactions with Japan to be conducted on a sterling or dollar basis.
Para. 4, M.259.  All exports from Australia are subject to licence. Outstanding export licences for Japan and Japanese territories were revoked on 28th July and the issue of fresh licences for exports to those destinations suspended except under special authorisation. Only one shipment of goods has been imported since date of publication of freezing orders. Further reference to this is contained in our telegram No. 526 of 12th August and your reply No. 570 of 13th August.  Outward charge consisted of 8534 bales wool paid for in sterling before 26th July and 3236 bales valued at 74,620 Australian currency. Value of latter quantity, together with expenses of servicing the vessel, was set off against the value of the imported cargo on a Clearing Account basis.
As to future imports the Japanese Legation has been informed that unless the Commonwealth Government are notified before any further goods are shipped from Japan to Australia we would be bound to regard the goods as prohibited imports.
Para. 6, M.223 .  Imports from Japan are now under examination to determine the nature and extent of essential Australian requirements from Japan. Goods which might be permitted export to Japan in payment for any authorised essential imports will it is expected be confined to wheat, flour, and other foodstuffs, and such quantities of wool as are released from time to time in consultation with United Kingdom Government or your Wool Control Committee. The value of these exports would be limited to the available funds from proceeds of permitted imports from Japan.