The Government has reviewed the Australian organisation at present
in the United States for procurement of supplies under Lease Lend
and for cash. All views furnished and recommendations made have
been carefully considered.

It has been decided that:-

1. All sections of Lease Lend and supply work to be brought into
single organisation, headquarters of which should be in
Washington.

2. Australian section of the British Purchasing Commission to be
merged with this organisation.

3. Subject to direction on general policy from Australia one man
to be responsible for all phases of activities-technical,
financial and administrative-and all other officers to be subject
to his direction.

4. An Advisory Council to be set up to assist the Director-
General, consisting of:

Chief Technical Adviser,
Chief Financial Officer,
Officer representing Director of Import Procurement, and
Australian official with financial and economic training.

5. The appointment of a man with financial and economic training
primarily to aid the Lease Lend organisation.

6. Appointment of Macgregor [1] to take charge of the
organisation.

7. Macgregor to be charged with the reorganisation of the office,
review of personnel and review of salaries paid.

Further details of the functions of the four members of the
Advisory Council will be telegraphed later.

We desire that the organisation shall be known as the Commonwealth
of Australia-War Supplies Procurement, and that Macgregor's title
shall be that of Director-General. [2]

We want Macgregor to make a supreme effort to use Lease Lend to
add to our limited resources of aircraft, munitions, supplies:

everything done to help us will equally help the United States and
your cablegram 1210 [3] is receiving immediate attention.

I want you to co-operate with Macgregor in every possible way.

Please inform him that we are giving him a great chance to serve
Australia at this critical hour.

The Prime Minister [4] has sent separate cablegrams to Macgregor
[5] and Clapp [6] appraising them of the new arrangement.

Best wishes,

EVATT