Japanese Consul-General [1] at present in Melbourne negotiating
for 200,000 bales merino and 100,000 bales crossbred. He is
prepared to give assurance regarding resale of wool and of woollen
manufactures. Have indicated preparedness make interim supplies
available, but no promise as to full requirements or qualities.

Please ascertain British Government's views as to price to be
charged to Japan and other neutrals, also British Dominions such
as Canada, and their ideas where payment should be made. We assume
payment will be made London.