We have considered your request contained in Circular D.74 of 15th
February [1], to suspend forthwith existing practice in dealing
with Japanese vessels and to refer all applications to Ministry of
Shipping for approval. We think there are some factors which we
should mention to you.

You will observe from early cables which we sent you on this
subject [2] that we entertained grave doubts as to whether
procedure proposed would achieve objectives you had in mind.

Despite these doubts we finally put procedure into effect, causing
difficulties and delay in supplies reaching Japanese vessels in
Australian ports. In addition we adopted financial measures
associated with ship warrants scheme.

In my cable 30th January, 1941 [3] we asked to be kept fully
informed of developments and also whether you are satisfied that
the measures adopted will be productive of results.

You will appreciate that the procedure we are following has not
been without its difficulties and unpleasantness. Nevertheless we
would be prepared to continue it if tangible results are to be
achieved.

Your latest telegram does not give us any reason for sudden change
of policy. We find it difficult to appreciate this.

With respect to procedure you suggest we should now adopt we wish
to point out the following-
(1) Each Japanese vessel visiting Australia calls at up to nine
ports.

(2) Mainly the period of stay in most ports is about six hours and
in case Melbourne and Sydney usual stay would not exceed 24 hours.

You will appreciate that by time application is made to Collector
of Customs, remitted to Canberra and forwarded to Ministry of
Shipping through usual channels a delay of more than 24 hours
would have occurred before Ministry of Shipping were aware of
application. Absurd position might arise where this could happen
nine times to the one vessel on the same voyage. Alternatively
application could be made at first port of call for supply at
subsequent ports which if Ministry of Shipping approves would mean
that there would be no delay to vessel unless delay brought about
by withholding decision.

Four days ago we cabled details of applications for Supply of
Admiralty charts for Japanese vessels but no reply yet received.

In the nature of things we consider that reference to Ministry of
Shipping of all applications for stores and bunkers would be
delayed much longer than 24 hours. The proposal might reasonably
be adopted as regards docking and repairs.

In my telegram No. 587 of 14th November [4] agreeing to
introduction of ship warrants procedure we emphasised that before
ultimate procedure you had in mind was adopted Commonwealth
Government desired full consultation. Your suggested procedure
gets very dose to ultimate procedure.

In the absence of information requested and also reasons for
change in policy we hesitate to comply with your request. Would
appreciate your earliest possible clarification of whole position
and your views on points raised by this cable.