I have seen your telegrams 62 [1] and 109 [2] to Dominions Office
and Dominions Office telegram No. 110 [3] to you and gathered from
your telegram 109 that you are satisfied with the position.

British Embassy has almost concluded its negotiations with Nippon
Yusen Kaisha and anticipates that the scheme will be accepted.

Success if secured will be due to their having been able to make
it clear to the Japanese shipping interests that unless they
accept the scheme their vessels will continue to experience delay
in obtaining facilities anywhere under British control. If the
N.Y.K. accepts, it is probable that other Japanese shipping
companies will do the same. I understand that the utmost
importance is attached to bringing the Japanese steamship
companies into the ship warrant system and I therefore urge that
in the event of any further representations by the Japanese
Consul-General [4] there should be no suggestion of any
relaxation.

With regard to Consul-General's protest, I would be glad to be
informed whether his statement that Japanese Government guarantees
non-enemy destination of all exports from Australia to Japan is
correct.

LATHAM