My telegram No. 22. [1] Sale of wheat and flour to Japan. We have
noted United States authorities admission that they are continuing
to subsidise exports wheat and flour to China and other countries.

Japanese importers and Australian flour exporting interests have
again approached Commonwealth Government with proposals for sales
of flour to Japan on basis fifty per cent. cash fifty per cent.

credit. In view unemployment flour milling industry shortage of
mill offals and continued anxiety regarding disposal stored wheat
we have indicated to interested parties that we will favourably
consider authorising credit deals, subject to later submission of
details of proposed contracts. [2]

Above is for your information and use at discretion.

MINISTER EXTERNAL AFFAIRS