I appreciate very much your reply [1] to my letter [2] in which I
conveyed my Government's desire to collaborate with Australia in
adjusting matters in the Pacific for die maintenance of law and
order and to exchange diplomatic representatives with your great
country simultaneously when you are ready to do so with Japan. I
conveyed your reply to my Government as mentioned in our previous
correspondence and also in our conversations.

According to press reports in Sydney, the appointment of an
Australian Minister to Japan is imminent. But I have a feeling
that you are confronted with difficulties in your realisation of a
policy in the Pacific which would not be interpreted as
jeopardising Sino-Australian relations. When I wrote to you last,
I also sent a letter to the Minister of External Affairs conveying
my Government's desire, but so far I have not received a reply.

[3]

I quite appreciate the delicate nature of the matter. I am a
Chinese and naturally I do things which a good Chinese citizen
should do. I represent my country in this happy land and it is my
duty therefore not only to work for my country, but to serve your
Government and your people to the best advantage of Sino-
Australian relations which will enhance mutual co-operation and
assistance.

The appointment of an Australian Minister to Japan without
simultaneously sending one to China may, if I may be allowed to
speak as your good friend in a personal way, pacify the Japanese
from the Australian point of view. But as an Oriental I know
Japanese and I doubt whether they would not misinterpret
Australia's attitude as merely conciliation. In other words,
Japanese action has always been based upon the reaction of others
and would not give consideration to reasons. Conciliation, to
Japan, not like to China, where it is considered as a virtue, is
weakness, and it is the weak spot which Japan is seeking all the
time.

The situation today in the Pacific is very serious. Accurate
information is essential. The adaptability of a policy depends
upon whether it is suitable to the new circumstances or not. it is
this time that China should not be underestimated and China's
assistance which has already been given to Great Britain must not
be under-valued. Why should Sino-Australian relations be ignored
at this moment and why should we give a chance to Japan to
misinterpret our relations. If Japan says that Great Britain must
cease to help China or else she would fight, China would ask will
Japan stop advancing southward if Great Britain should cease to
help China. What is Japan going to fight with? A million and a
half Japanese soldiers are tied up in China. More than one hundred
and fifty warships of all descriptions are around some Chinese
coastal cities and should they be ordered to move it means that
China will immediately re-capture those cities. I have been
informed that should Japan attack Indo-China, my country would
consider advancing from Kwangsi and Yunnan border where 450,000
Chinese troops, very well equipped and full of high spirits, are
stationed.

Sino-Australian relations may not be as urgent as relations
between Japan and Australia. This is an old conception. Even if
so, why should Australia do a thing which would not be good for
herself in the long run and yet jeopardise our relations. My
Government, as I informed you before, would consider the
appointment of an Australian Minister to Japan without
simultaneously sending one to China as contradictory to the policy
of Great Britain and Australia towards China.

I know the question is not as easy as one thinks. It involves
money and personnel also. I do not think money is the important
question. Suppose you establish two legations at Tokio, and
Chungking simultaneously, it does not involve whether you should
appoint Ministers simultaneously or not. If you have a Minister to
Chungking who is entrusted to act as a Minister to Tokio also or
you have a Minister to Tokio and a Charge d'Affaires in Chungking,
it would help to eliminate difficulties of personnel and yet
justify Sino-Australian relations. It is not a personal [sic]
question. In early days Australia's Far East policy was shaped by
that of Great Britain. But today Great Britain's Far East policy
depends upon Australia's attitude. This is very important to my
country and the future of the Pacific.

Would you really consider this matter and help me and my country?
I think it is important for me to see you and the Minister of
External Affairs personally. I will fly to Melbourne tomorrow. I
know you are very busy but as the matter is very urgent I must put
China's view clearly before you both. My Government is pressing me
for immediate reply and I should not make inaccurate reports. I
would appreciate very deeply if you would give me an interview on
Tuesday afternoon or evening or any time on Wednesday at any
place. [4]

C. J. PAO