[The office of U.K. High Commissioner in Australia was temporarily
vacant. Sir Geoffrey Whiskard left Canberra on 17 June to return
to the United Kingdom. His successor, Sir Ronald Cross, took up
office on 16 July.]

Please give the following message which is of the highest degree
of secrecy to the Prime Minister [1] for his most secret and
personal information. From the Prime Minister. [2] BEGINS.

1. General Wavell's [3] attack in the Western Desert which began
on Sunday morning prospered until the evening of the second day
but on the third day the German counter attack caused him to yield
up all his gains and we were glad to get back to our original
position with[out] disaster. The number of armoured vehicles on
each side was about 200; we had a superiority in the air. Forces
employed on both sides represented an intense form of war effort.

2. Losses on both sides were severe; we lost at least 100 tanks
but the enemy seemed in no condition to press pursuit. Had these
operations been successful and enemy been pushed to the
neighbourhood of Tobruk, substantial results might have been
gained. As it is, our effort to regain the initiative has failed,
and it may be some months before we can resume the offensive.

There is no reason to suppose that the enemy possesses the
strength at present to force the Mersa Matruh position or that he
is at all triumphant. On the other hand the situation at Tobruk
and at Malta requires the serious attention of the Staffs. We must
fight hard.

3. I send you in a separate message [4] the answers to the
questions set out in your telegram No. 363. [5] These should
dispose of the suggestions that we do not regard the defence of
the Middle East as second only to the life of Britain.

4. No immediate crisis is expected on the West Nile.

5. You will have had the telegram about the reported French
request for an armistice in Syria. [6] I hope the report is well
founded but the news tonight is that sharp Vichy French resistance
at various points continues. Now that we are thrown back on the
defensive in the West, Wavell may be able to [reinforce] [7] the
Syrian operation with more air, tanks and men. We have suggested
this to him.

6. Little did we think this time last year that we should stand
where we do today in the Middle East. Pray see our previous
correspondence after the Dakar fiasco. We are certainly in a much
better position to defend the Nile Valley than we were then, but I
make no promises and give no guarantees except that we will do our
best. ENDS.