Your No. 744. [1]

Position of some delicacy reached in New Caledonia. Conseil
General representing strong popular opinion in favour continuing
war passed resolution August 28th demanding departure of Governor.

[2] Governor subsequently indicated Vichy his intention to leave
colony. Ballard [3] considers general aim of popular movement is
to remain French but to have temporary autonomy to enable them
participate fully with British Empire.

We have been anxious that popular movement should not result in
any request for Australian intervention on account of undesirable
consequences which such contingency might have in way of pretext
for Japanese action and have instructed Ballard to act
accordingly.

Ballard has been informed that best solution would appear to be
local administration owing nominal allegiance to Vichy but
sympathetically inclined to wishes of local populace in regard to
continuation of war effort. In view however possibilities
suggested in your 744 realise it might become necessary to
reconsider this aim.

MENZIES