1 Commonwealth Government to Cranborne

Your D.1190 and your No. 398. [1]

1. The Australian Government regards it as essential that there

should be a frank understanding of the arrangement made in London

in July between Mr. Churchill, Mr. Eden, Mr. Attlee and Dr. Evatt

in relation to the protection of Australian postwar interests in

Timor including Defence, Trade and Communications. [2] We cannot

forget that no assistance whatever was received by us from

Portugal at the crucial time and even if Portugal now proposes to

engage in active combat With Japan the arrangement made is

necessary to protect our interests.

2. in the circumstances we regret that your proposed communication

to the United States Government was not submitted to us in the

first instance. For instance the phrase 'The Liberation of Timor'

might suggest to the United States an absolute restoration of

Portuguese sovereignty without any of the necessary qualifications

or addenda. Presumably Australia's special interests, having

already been made clear to the Portuguese, will be made equally

clear to the United States Government.

3. With regard to Staff conversations we are quite prepared to

take part in these.

[AA:A989, 43-44/970/54]