Your telegram No. 660 [1] and my telegram No. 97. [2] Australian
Minister Tokyo.

Consul General Japan [3] made special visit to Canberra today on
instructions of his Government to state that Japanese Government
were anxious to finalize matter but had not yet received any
request about agrement Australian Minister.

He was asked to approach authorities here to ascertain by what
channel and by which means any request for appointment of Minister
had been made.

Japanese Ambassador London [4] has received similar instructions.

As consequence of above it is clear misunderstanding has arisen.

Either (a) which is possible but not probable, Arita [5] in the
stress of the formation of new government did not pass on to
successor [6] Craigie's request [7] or (b) which is view of Consul
General that when Arita expressed satisfaction and said formal
reply would be given as early as possible he expected name to be
submitted forthwith and meant that formal reply would cover both
principle and acceptance name.

Consul General in support of this said Japan as far back as
January had accepted principle and he had himself been asked to
indicate this to the Commonwealth Government and to enquire when
Commonwealth Government was in position to make decision as
Japanese Government wanted to make provision in their Budget for
reciprocal appointment.

Consul-General (was) informed of our understanding of stage
actually reached namely that we were waiting on acceptance of
principle before submission of name before your telegram was
received. He was cabling this immediately to his Government and
expressed hope that name would be submitted immediately so that
Japanese Government could reply (both) questions. He made no
mention of any conditions such as no appointment of Minister to
China.

In the circumstances it is desired action as requested in my
telegram No. 96 [8] be taken immediately.

In my view we have now gone too far to use delaying tactics even
if such were desirable which I doubt. Indeed it seems to me that
in the present somewhat improved atmosphere the exchanges might
prove a real contribution all round amicable settlement. If we
cannot obtain formal acceptance this week, retrospective
legislation can be introduced or alternatively we can proceed
without amendment of judiciary (Act) which is unnecessary on one
interpretation.

MENZIES