26 June 1940

FOR THE MINISTER

FRENCH TERRITORIES AFFECTING AUSTRALIA

In view of the French capitulation, consideration has been given
to the question of French colonial territory in the Pacific and
Indian Oceans in proximity to Australia, and in Antarctica.

The following are the main ones:-

1. Kerguelen Archipelago. Approximately half-way between Australia
and South Africa in the South Indian Ocean. This is a group of 200
islands sparsely populated, but with magnificent harbours,
abounding in mineral and animal wealth completely undeveloped. As
a fishery, meteorological and air base for a trans-Indian Ocean
service they are ideal.

2. Islands of St. Paul and Amsterdam. Also in the South Indian
Ocean. Sparsely populated; of value as fishery, meteorological and
air base stations.

3. Adelie Land in the Antarctic Territory. A strip of territory
interposed between the two Australian sectors. We had a
controversy for many years with the French Government over the
sovereignty of Adelie Land and in 1937 recognised their claim. The
coast is accessible the whole of the summer and has the best whale
fishery ground in the Antarctic.

4. New Caledonia. 400-500 miles east of Brisbane; population about
5o,000. Noted for its very valuable chrome and nickel deposits.

This group, with the Society Islands also belonging to the French,
form a valuable air base and by agreement with the French is now
one of the links on the American Trans-Pacific air route to New
Zealand (which is due to begin operation next month).

5. Condominium of New Hebrides. A joint administration, the
British share of which comes under the High Commissioner for the
Western Pacific. The British interests there are, however, all
Australian. The settlers are Australian nationality, practically
the whole of the import trade is with Australia; the Commonwealth
Government has over 50,000 acres of land there at various key
points and there are strong sentimental ties in the Australian
missionary field as it is the main mission field of the
Presbyterian Church of Australia, which also has considerable
property and land there.

6. Indo-China. The future of Indo-China is not so much of direct
as of indirect interest to Australia at the present time and the
action being taken by Japan in Indo-China with regard to the
stoppage of the transit trade for the assistance of the Chiang
Kai-shek Government is well known.

At the moment we are mainly concerned over the future of New
Caledonia. In the case of the New Hebrides it can be assumed that
while the British still retain their share of the administration
no drastic action will be taken by another Power to alter the
present position.

On 25th June, the Council of New Caledonia and the Returned
Soldiers' Organisation both passed resolutions repudiating in
effect the Bordeaux Government and declaring their allegiance to
the De Gaulle National Committee in London. Copies of these
resolutions were sent to the Commonwealth Government [1] which in
turn passed them on to the United Kingdom Government. (They were
also received direct by the United Kingdom Government).

It is felt that it would be unwise to assume any measure of
jurisdiction over New Caledonia or, as has been suggested in some
quarters, that Australia should proclaim a protectorate over New
Caledonia.

The military and naval forces of the colony are negligible and
from the point of view of the continuation of the war effort of
the Allies they are a source of weakness.

It is suggested that the policy of the Commonwealth Government in
the circumstances should be one of considerable reserve and no
action should be taken which might be considered in some quarters
as an attempt to disturb the status quo and so possibly provoke
retaliation by another Power against other French possessions, if
not New Caledonia.

Further, it is felt that from the point of view of Australia it
would be really preferable for New Caledonia to proclaim its
adherence to the Bordeaux Government as its eventual disposition
would then be a matter for Italy and Germany. As it is, Japan
might act against New Caledonia or other French possessions on the
ground that she is acting on behalf of the Axis Powers in
protection of their interests.

This is on the assumption that no effective continued French
resistance can be organized. On the basis of Tel. No. 473 from the
High Commissioner [2], however, the prospects of effective
organisation seem more promising.

The wisest course at the moment would seem to be to endeavour to
get the United States to take a more direct interest in the
question of the disposal of New Caledonia. It will be remembered
that strong attempts were made to induce Pan-American Airways to
select Fiji as a landing-ground in the Trans-Pacific route rather
than Noumea, but without success. Therefore New Caledonia must
remain a very direct source of interest to the United States and
her Trans-Pacific air route. The United States Government is not
prepared to make any further declaration as to the maintenance of
the status quo in the Pacific and Far East, vis-a-vis Indo-China,
but it might do so as regards New Caledonia.

Accordingly the following telegram to the Australian Minister at
Washington [3] is attached for consideration.