E (PD) (37) 10 (extract) LONDON, 1 June 1937

MR LYONS thought at the moment by far the most important question
was that of the world international situation and the vital
necessity for appeasement among nations if civilization was to be
preserved. The very full and highly confidential information which
had been placed at their disposal by the Government of the United
Kingdom made it unnecessary for him to attempt to construct a
picture of the present international situation. No one who had
read the documents placed before them or who had heard the
statements on the subject by Mr Eden [1], Sir Thomas Inskip [2],
Mr Runciman [3] and other British Ministers could be under any
delusion as to the extreme gravity and danger of the position. He,
Mr Lyons, wished to repeat with all the emphasis he could that it
was the duty of those assembled at this Imperial Conference, in
the interests of the separate parts of the Empire, in the
interests of the Empire as a whole, and in the interests of the
world at large, to accept wholeheartedly and loyally the general
principles in regard to national affairs which had been laid down
and followed with so much courage, generosity, and wisdom by the
United Kingdom Government, to support without qualification the
declarations on the subject which that Government had made, to
stand solidly and firmly behind that Government and to co-operate
in the fullest possible measure with the efforts of that
Government to secure world appeasement and peace. He would like to
feel that the other Dominions and India shared to the full the
view of the Government of the Commonwealth of Australia that the
policies of the United Kingdom Government and of Mr Eden, the
spokesman of that Government, in matters of foreign affairs
commanded the most complete confidence and approbation. He was
sure that this was so in regard to public opinion in Australia and
he was confident that it was equally so of the great bulk of
public opinion throughout the Empire. On these grounds he hoped
that this Imperial Conference would be able to strengthen that
courageous and far-sighted lead which the United Kingdom had given
to the world. It was impossible to deny that it was Britain, and
Britain alone, which had by her example and her efforts preserved
the peace and enabled prosperity and confidence to revive. Nothing
was so likely to impress public opinion throughout the world as
the knowledge that the whole Empire stood solidly behind the
policies of Britain in this matter and that the declaration was a
declaration of the Empire as a whole. It would enormously
strengthen Britain if it was made clear beyond misunderstanding
that there was no division of any sort within the Empire ranks.

Australia's feeling of friendship for other countries was not one
based on the exclusion of one or two countries, but was one which
embraced every country. Two years ago he had listened with great
sympathy to an earnest appeal which General Hertzog had made for
more sympathetic treatment and understanding of Germany and her
difficulties. At that time the representatives of the United
Kingdom had been able to indicate certain cogent reasons which
then militated against closer relations between Germany and the
British Commonwealth. The position in this respect was perhaps not
so difficult to-day as it had been two years ago. Might not much
the same thing happen in regard to Italy and might it not be
possible in a comparatively short time for the old traditional
friendship between Italy and the British Empire to be re-
established. He had recently seen Signor Mussolini who had told
him that there was every possible reason why Italy should be
friendly with Great Britain. If the relations between the two
countries were strained, Italy could not possibly develop her
homeland much less her overseas empire. Signor Mussolini had asked
him to inform Great Britain that he wanted peace, and wished to
live on the most friendly terms with Britain in the true interests
of Italy itself. [4] The objective, therefore, should be
friendship with all. If the Conference was to separate without
some declaration of unity and support of Great Britain, it would
inevitably be said that on this vital and fundamental matter the
Empire was divided. If such a declaration could be made, nothing
was more calculated to promote peace. On the other hand, if such a
declaration could not be made, nothing would be more calculated to
bring nearer the breakdown of International relations and the
outbreak of war. He would like to see all the Dominions co-
operating with Great Britain to the same extent and on the same
lines as Australia was prepared to do. The main thing was to
inform the world that the whole Empire stood firmly with Britain
and believed implicitly in her policies. He had not prepared any
draft resolution, but if the attitude he had indicated could be
generally accepted, there should be little difficulty in preparing
a definite declaration.

In conclusion, he felt bound to say that if it was not found
possible for the Conference to adopt a declaration such as he had
indicated, he should return to Australia a thoroughly
disillusioned man and he could not too strongly emphasise the
consideration that any declaration passed by the Conference should
be based on the principle of maintaining absolute friendship with
all the nations of the world.

MR MACKENZIE KING reminded the Principal Delegates that in 1926 it
had been found better for good and adequate reasons to have
informal conferences on any resolution before presenting the
Conference with a formal declaration which, if not worded to the
satisfaction of au, might raise difficulties of many kinds. He
entirely agreed with Mr Lyons in the desirability of the
Commonwealth presenting a united front, but he was satisfied that
it would be very much better to examine and discuss the whole
question in advance rather than to attempt in the first instance
to agree on the text of some abstract resolution.

MR SAVAGE thought that the suggestion formulated by Mr Lyons was a
good one, provided that it had regard to realities and was not
concerned merely with the sentimental aspects of the matter. In
his view the declaration should indicate what was wrong with the
world and what ought to be done to remedy the existing state of
affairs. Then each of them could return to his own country and
take steps to implement the agreement reached at the Conference.

He thought that if a few of the Delegates could meet together, the
drafting of a declaration on the lines indicated by him should not
present serious difficulty.

GENERAL HERTZOG said that he always felt shy about resolutions,
particularly if they were concerned with abstract conceptions. In
1926 it had been found very difficult indeed to reach agreement on
a resolution of this kind. But in many respects the position to-
day was much more serious and critical than it had been in 1926;

the whole world was on edge and he feared that any resolution on
the lines suggested by Mr Lyons would be regarded by the countries
outside the British Commonwealth as a challenge to them. It would
be interpreted as dissatisfaction on the part of the Commonwealth
with the position in the rest of the world and as a first step
towards remedying the supposed evils in ways which the
Commonwealth might favour, but which the rest of the world might
strongly deprecate. We must be very careful indeed in any action
we took in this matter. He firmly believed that the British
Commonwealth was in a position to influence world policy to a far
greater extent than any other individual nation or indeed than the
League of Nations itself.

It was for this among other reasons that he attached so great
importance to the conclusion of a United Kingdom-United States
Trade Agreement. It was on these lines that we ought to proceed.

Let us make every effort to secure the fullest measure of American
co-operation and other countries would then be only too anxious to
join in so powerful a co-operative union. Such a policy would in
his view be very much more effective than any abstract resolution
adopted by the Conference which might have very embarrassing
consequences and highly troublesome reactions.

MR MACKENZIE KING said that he yielded to nobody in the importance
he attached to maintaining a united front. If, however, some
resolution were to be passed at the Imperial Conference which
would afterwards become the subject of heated debate in the
Dominion Parliaments, that would be the course of events most
likely of all to impair that united front.

There was always, of course, the method of avoiding these dangers
by producing a completely anodyne resolution. The value of a
resolution which would contain nothing but platitudes was
doubtful.

They should always bear in mind that discussion in an Imperial
Conference was not the same thing as discussion in a Cabinet. The
former kind of discussion aimed only at coordinating various
policies.

MR LYONS entirely agreed with Mr Mackenzie King regarding the
dangers of an Imperial Conference resolution, but this would not
apply to the kind of declaration which he (Mr Lyons) had in mind.

He would be the last willingly to infringe the liberties of the
Dominion Parliaments.

It ought not to be impossible, however, for some lead to come out
of the Conference which would be acceptable to them all.

He was afraid that his position had been greatly misunderstood by
General Hertzog. He had never suggested the formulation of a
threat. On the contrary he had suggested that they should declare
their desire for peace towards all the peoples of the world,
excluding none. How could it be possible to regard that as a
threat?
He knew that all those present were equally desirous of peace and
it ought not to be impossible to produce an agreed form of words.

Probably this could best be done by a discussion with smaller
numbers present.

MR CHAMBERLAIN said that it seemed to him that all the Delegations
were very much in accord in their attitude towards the
international position at the present moment.

They were all desirous of peace. There were various ways in which
that desire could be expressed. The question raised by Mr Lyons
was whether the Conference could not help in the establishment and
maintenance of peace by giving some joint public expression to
their desires.

It would certainly be a very impressive thing if it could be shown
that this assembly of great self-governing countries was at one in
its views on international questions.

Was it possible then to find words to express what they wished to
say and to avoid saying what they did not wish to say? They would
also, as Mr Mackenzie King had pointed out, have to avoid the
opposite dangers of too great precision and too great vagueness.

The United Kingdom Delegation would very gladly try their hands at
a draft, if the Meeting was willing, and would send copies of that
draft in the first place to individual Dominion Delegates. When
these had had time to consider the draft, it might be examined by
a small meeting.

If this procedure were adopted, the Conference would remain
completely uncommitted by the present morning's proceedings.

MR MACKENZIE KING said that he entirely agreed. He had no
objection whatever to informing the world in a suitable way of
their unity of thought in international affairs. His previous
fears had been lest divisions of opinion should be disclosed.

GENERAL HERTZOG said that he also was willing to agree to Mr
Chamberlain's suggestion.

MR LYONS also agreed.

MR SAVAGE thought that it would be very useful to give a public
indication of the aspects of foreign affairs on which the
Conference was united. If no indication were given, awkward
questions might be asked.

MR EDEN thought that the difficulties of drafting an expression of
unity of thought on international questions ought not to be
exaggerated. They were not going to challenge the world, but only
to attempt to give it a lead.

The Meeting approved Mr Chamberlain's suggestion that the United
Kingdom Delegation should circulate a draft to individual Dominion
Delegates.