445 Embassy in Washington to Department of External Affairs

Cablegram 1113 WASHINGTON, 16 August 1947, 12.42 p.m.

IMMEDIATE SECRET

F.E.C.227. Level of Japan's Industry.

1. Your telegram 985 was received only a few minutes before Australian Representative entered meeting of Committee, No 2. It was therefore not possible to consult with British Commonwealth colleagues other than to inform them before the meeting of our general position.

2. Australian Representative made a preliminary statement to Committee of Australian position and requested an opportunity to develop Australian view in more detail at a subsequent meeting.

3. United States Member said he must go on record that he was sure his Government would not agree with Australian view and would insist on a F.E.C. decision. Chairman of Committee (Everson [1] United Kingdom) said he could not understand why Australia should suggest that F.E.C. should shirk its responsibilities. It would probably be 18 months before a peace treaty could come into effect and it was worthwhile for F.E.C. to lay down a policy even if it were only to run for a year.

4. Reference paragraph 2 your telegram. It would help us to carry out your instructions if you could give us some preliminary indication of particular industries which for security or other reasons should be reduced below 1930-34 level and those which should be increased above that level. This would probably provide material for considerable discussion at committee level and possibly for reference back to Sub Committee.

1 F.C. Everson, First Secretary, UK Embassy in Washington.

[AA : A1838, 483/2, iii]