CANBERRA, 17 October 1949
CONFIDENTIAL With reference to your confidential memorandum No.888 of 14th September, 1949, enclosing a copy of a memorandum from the Thai Ambassador in London proposing the establishment of diplomatic relations and an exchange of Ministers between Thailand and Australia, I set out below the terms of the reply which should be conveyed to the Thai Ambassador.
'His Majesty's Australian Government is in receipt of the memorandum presented by the Thai Ambassador in London to the Acting High Commissioner for Australia in London on 14th September, 1949, and notes the proposal of His Thai Majesty's Government that there should be an exchange of notes between the High Commissioner for the Commonwealth of Australia and the Thai Ambassador in London, providing for the establishment of diplomatic relations and for the exchange of representatives with the rank of Minister.
'His Majesty's Australian Government regrets its inability to accept the proposal of the Thai Government since, in the view of the Australian Government, such an exchange of diplomatic representatives should properly await the satisfactory completion of negotiations already proceeding in Bangkok between the representatives of Thailand and Australia in respect of the settlement of outstanding claims for war loss and damage.
'His Majesty's Australian Government, taking this opportunity to renew its previous assurances that it will entertain no objection to the appointment of a Thai consular representative in Australia, looks forward with pleasure to the earliest possible establishment of normal diplomatic relations with the Government of Thailand.'