9 Department of External Affairs to Watt
Cablegram 23 CANBERRA, 6 January 1946
Reference Dominions Office telegrams D.2065, D.284 and D.366.  International Health Organisation.
1. We feel United Kingdom proposals for formation proposed health organisation raise similar uncertainties as to its status as in case of their approach to U.N.E.S.C.O., namely whether a specialized agency is intended or a subsidiary organ either of Assembly or Economic and Social Council. Procedure for establishing new specialized agencies is defined in Article 59  and we do not see how they can be established by direct resolution of Assembly.
2. If in view of technical character and volume of activities a specialised agency is preferable we think United States proposal for conference convened by Economic and Social Council at which constitution would be agreed on subject to governmental ratification is acceptable. Provision would need to be made for closest possible administrative and budgetary tie-up with United Nations.
3. On the other hand we strongly favour the United Kingdom purpose of securing maximum integration with United Nations Organisation and it is possible that subsidiary organ of Assembly or Commission of Economic and Social Council is most appropriate, though United States is apparently determined on specialised agency. Has attention been given to role and character of subsidiary organs under Article 22? 
4. Would appreciate views of those concerned with this problem on Preparatory Commission. As you know question is to be raised during Assembly meeting. We have not yet commented on Dominions Office telegrams.