Sir John Latham, Minister to Japan

Cablegram 89 19 March 1941

SECRET

Your telegram No. 120. [1] All instructions regarding control of
exports by Governor in New Caledonia [2] are given by General de
Gaulle [3] and suggestion that Commonwealth Government exercising
influence in this connection can be definitely repudiated. In this
connection, Japanese Consul-General [4] in January enquired of
Department whether Australia had requested Sautot to prevent
supply of raw materials from New Caledonia going to Japan and was
informed that Australia had nothing to do with this matter.

Position regarding nickel is that whole economy of New Caledonia
being dependent on satisfactory solution of nickel problem,
Commonwealth Government has agreed to take output of nickel matte
from Societe Le Nickel including matte produced from ore purchased
from two independent companies under contract to Le Nickel. In
addition we are taking matte from ore which it is necessary to
purchase from certain small producers.

All of foregoing is for period up to June, 1941. In addition, Le
Nickel is to purchase from small producers and store 1,000 tons
[5] of ore. After 30th June, Commonwealth will be purchasing
quarter by quarter equivalent amounts. We have arranged for sale
of matte to Inco of United States and are now negotiating with
Inco for purchase by them of further matte from New Caledonia.

Understand that present policy of New Caledonian administration is
to permit export of ore within certain defined quota limits.