I am in receipt of your letter of 5th June, 1940, on the subject
of the prohibition of the export of iron ore from Australia. [1]

I regret that I have not been able before this to communicate to
you the decision of the Commonwealth Government, but your
Government will appreciate that a most exhaustive investigation on
such a vital question was necessary to establish fully the facts
on which the Commonwealth Government had to base its decision.

This investigation is still proceeding, but an interim report has
been received which indicates without any possibility of doubt
that the deposits of iron ore in Australia are extremely limited
in extent. The report shows that the position is far more serious
than was believed at the time the prohibition was made.

Consequently, the continuance of the prohibition of the export of
iron ore from Australia is completely unavoidable.

As you are aware, the Commonwealth Government is prepared to
examine and consider equitable claims by Japanese nationals for
reimbursement of their expenditure in connection with the Yampi
Sound enterprise up to the time of the commencement of the
embargo. Any such claims submitted through you will have the
earliest possible attention. [2]

R. G. MENZIES