Your telegrams 465 and 468. [1] Your telegram 130 to Commonwealth
High Commissioner in London. [2] High Commissioner for Western
Pacific's telegrams touring Nos. 3 [3] and unnumbered of 3rd [4]
and 4th September [5] from Vila.

It is known here on reliable authority that the recent
instructions from Vichy to Colonel Denis [6] include designation:

(1) To restore the Pro-Vichy attitude of the population now under
the influence of neighbouring countries. Press censorship and
proclamation of a state of siege may be used for this purpose.

(2) [7] Not at the moment to proceed against the autonomist
leaders who are known to have an important following.

(3) As regards relations with the neighbouring countries on which
New Caledonia is closely dependent, you act [8], particularly in
economic field, but for the moment to allow all interchanges to
proceed.

2. Further information is that New Caledonia has reported to Vichy
that a contract is now about to be signed in Sydney by the
Director of New Caledonian Nickel Co. [9] and that stoppage of
Nickel factory would cause considerable local unemployment, and as
a result serious trouble, which might prove the pretext for
British intervention. Report further refers to local opinion being
excited and demanding local autonomy and accession to de Gaulle.

[10]

3. This may throw fight on the attitude of Colonel Denis as
reported in fourth paragraph of your Telegram to Dominions Office
No. 465. It may be that he is merely trying to tide over a time of
crisis without accepting any substantial commitment towards real
co-operation with us.

4. We appreciate the considerations put forward in telegram
touring No. 3 from High Commissioner for Western Pacific, but we
doubt whether any advantage would be gained by deferring final
decision on statement. We therefore suggest the continuance of the
plan for sending H.M.A.S. 'Adelaide' to New Caledonia with Sautot
[11] as Governor appointed by de Gaulle, and, if you agree, formal
appointment of Sautot by de Gaulle will be cabled through the
British resident Commissioner of New Hebrides. [12] Terms of the
proposed appointment are given in my immediately following
telegram [13] which has not been repeated to resident Commissioner
of the New Hebrides. If the French resident Commissioner's yacht
is available for transport of Sautot to Noumea, we feel that it
would be preferable for him to arrive there by this means,
supported by H.M.A.S. 'Adelaide'. If this course is adopted terms
of the appointment could be modified accordingly. Please telegraph
your views as soon as possible, action on the issue of Sautot's
appointment will of course be deferred meanwhile.

5. Apart from the encouraging effect of the arrival of the
'Adelaide' at Noumea on de Gaulle sympathizers (statement by High
Commissioner for Western Pacific that between one-third and one-
half of 'Dumont D'Urville' crew are pro de Gaulle is relevant in
this connection) it would appear that the likelihood of adherence
of New Caledonia to de Gaulle would be enhanced by economic
pressure which might be put on the present Governor, and economic
offers which can be made to de Gaulle's party on the lines of the
Prime Minister's [14] letter of 27th August quoted in Dominions
Office telegram No. 316 to Commonwealth Government [15] and in
Colonial Office telegram to High Commissioner for the Western
Pacific No. 142. [16] If Commonwealth decide to take such economic
action, this might also be concerted with High Commissioner for
Western Pacific as far as trade between New Caledonia and Western
Pacific is concerned.