Your Z. 104 [1] arrived when my Government was considering a
revised appreciation which the Chiefs of Staff had been requested
to submit urgently regarding the needs of local defence and the
further resources which are available for offer to the United
Kingdom. [2]

The quick deterioration of the situation renders it difficult to
establish a reasonably firm basis for vital decisions governing
war policy and the same considerations have no doubt handicapped
your advisers in furnishing the review asked for in my cablegram
208 of 8th May. [3]

My Government feel, however, that such information covering the
probable alternatives with which the Empire may be confronted is
of the greatest possible urgency to enable us to review our policy
on local defence and Empire co-operation and to decide on the
measures necessary to give effect to it.

Under certain contingencies it might be possible to render-
(a) Further naval assistance such as one armed merchant cruiser.

One sloop at once and an additional sloop at the end of July for
use in the Indian Ocean and Red Sea area.

(b) Subject to contingencies as mentioned, which it will no doubt
be possible to judge by the review asked for, additional
assistance might be rendered with further land forces, but the
governing factors appear to be advice as to the theatre in which
they would be employed and capacity to equip and ship them within
the time required. In regard to equipment, as mentioned in my
cablegram 256 of 3rd June [4] the subject is under discussion
between the High Commissioner and War Office and matter is vitally
affected by practicability of shipment and what is in view in this
respect should Red Sea route be closed. In a separate cable we are
advising the High Commissioner [5] that we will render the maximum
possible effort from our own resources and informing him of the
immediate requirements we are able to provide.

(d) [6] Similarly, it might be possible to make available from the
Air Force one extra Squadron of Hudsons and one Squadron of
Wirraways. In view present armament of Hudsons and Wirraway
aircraft which is peculiar to Australia these units could more
profitably be employed on replacing R.A.F. units in India or Far
East preferably Singapore where we are already sending one Hudson
Squadron.

I would repeat my earlier assurance that the Government and people
of Australia are fully behind you in the resolve to defend the
Empire until victory is assured. [7]

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