Have received following from the authorities here:

'It is understood on reliable authority that Chinese Consul-
General at Sydney [1] has reported to his Government that he
discussed with the Commonwealth Prime Minister the question of
Australian diplomatic representation at Chungking. The Consul-
General's account is that Mr. Menzies told him of reference to
London and answer received, substance of which was that, after
reviewing reasons for both acceptance and refusal, which disclose
an irreconcilable difference of opinion, Australia was requested
to decide the question for herself. Owing to a difference of
opinion in Commonwealth Cabinet no decision was reached, but the
matter is being further considered by Cabinet, and Mr. Menzies is
said to have stated that he would himself vigorously support the
proposal. Mr. Menzies is said to have added that there had been
some slight difference in the situation since Japanese arrests of
United Kingdom nationals and that there might be a good chance for
proposal of representation in China being adopted.'

BRUCE