Your M. 49 [1]: During Anthony's [2] visit to New Zealand proposal
made by Prime Minister of New Zealand [3] for appointment
Committee consisting of New Zealand and Australian Cabinet
Ministers to confer periodically in New Zealand and Australia
alternately on mutual defence and supply problems. Anthony cabled
this proposal to me and reply was forwarded stating proposal not
agreed to.

On Anthony's return he presented memorandum from Fraser suggesting
formation Consultative Committee on war and post-war supply
questions, consisting of Ministers for Supply as the permanent
members and other appropriate Ministers co-opted as required.

At the time I did not consider this of sufficient importance for
consultation with you but as I had turned down previous request I
thought it advisable to agree to the latter proposal, and
accordingly despatched a cable notifying agreement in principle
but stating that the time and place of meetings should be a matter
for further examination. [4]

Anthony's press announcement gave far more importance to the
Committee than the circumstances warranted. I had already advised
him to this effect and that any press notice should have been made
by me. Terms of reference and proposed procedure have not yet been
considered but will consult you before finality reached.

FADDEN