The following message has been received from the Australian
Minister, Tokio [1]-
Begins.

'Vice Minister for Foreign Affairs [2] sent for me specially to
ask that consideration be given to Japanese wool requirements. Did
not disguise that some required for Army use but also wishes to
keep manufacturing industry going. Wool interests have made
similar representation. Commerce Bureau official gave details.

Would like Cross-bred, but recognise difficulties in the way. They
ask for merino types which I am asked to describe specifically as
follows:

"For warp and/or weft-from 64's to 70's;

For warp and/or weft-from 60's to 66's;

For warp and/or weft-from 64's to 66's.

It is asked that these types be about 71% of supplies in same
proportions as in the first seven releases. Official says that if
some concession cannot be made, Japan cannot continue present
self-imposed obligations to purchase from Australia two-thirds of
wool imports. Guarantee will be given against wool reaching enemy.

I have said that war requirements are necessarily dominant and
this is admitted. If, however, request could be granted to some
extent, it would be very greatly appreciated. The British
Ambassador [3] agrees with me that it would be wise to consider
requests with sympathy.'
Consul General, Australia [4], has also written to Acting Prime
Minister [5] requesting sympathetic consideration of wool
supplies. Shorn of unimportant passages, his letter [6] reads:

'I desire to inform you that at present, on account of the
prohibition of the sale of certain types of wool to Japan,
Japanese merchants in Australia are finding themselves in a very
difficult position. Particularly has this been the case recently,
when alarming reports of the deterioration of the relations
between Australia and Japan have been in circulation and I am sure
you will agree with me that the responsible statesmen of our
respective countries should strive, by every means in their power,
to achieve a better and more harmonious understanding between the
two countries. Not only is the wool trade the backbone of the
trade between Japan and Australia but it is also one of the most
important evidences of the cordial relations existing between the
two countries. If, at the present moment, when sensational reports
are current regarding the relation between the two countries, the
purchases by Japanese merchants of their ordinary requirements of
wool could be made, this fact would no doubt greatly contribute to
the lessening of the anxiety caused by the present situation. For
this reason I wish, on behalf of the Japanese merchants and under
the instruction of the Japanese Government, to approach you in
order to enquire whether your Government will, at this time, use
its good offices, with a view to the granting by the British
Government of permission for the allotment to Japan of, say,
50,000 bales of wool of merino types containing free to few burrs.

If you can do so I shall be greatly obliged as the interruption of
the wool trade naturally leads to decrease of business so that the
Japanese merchants are compelled to return to Japan, an effect
which, in my opinion, we should strive to avoid.

Should this matter receive your favourable consideration I shall
at once instruct the representatives of Japanese firms to get into
touch with the Central Wool Committee in order to supply further
particulars of their requirements. I shall greatly appreciate any
endeavours you may make for the furtherance of the trade in the
abovementioned direction which will contribute to a better
understanding and the lessening of the tension, if any, between
our two countries.'
Government and Central Wool Committee are aware of the reasons for
the present ban but Government feels it must ask you to submit to
proper authorities in U.K. the representations as given herein.

Have suggested to the Australian Minister, Tokio that British
Ambassador would probably help position if he cabled his views to
his Government. Intervention by Japanese Government is apparently
at instance of commercial interests involved and Minister at Tokio
apparently considers conciliation of those interests to be of some
value. As you already know, Government here have, on numerous
occasions, notified representatives Japan that wool is property of
United Kingdom Government and its disposition rests entirely with
that Government. In requesting you to place matter before U.K.

authorities our purpose is not to urge any particular viewpoint
for we consider there is no need to stress again Australia's
position vis-a-vis Japan. We feel, however, that in general
consideration of position, this latest development on wool
supplies may be of sufficient importance not to be ignored.

Central Wool Committee has cabled Essendon [7] in this matter.

Please contact him and hand him a copy of this message.