Your cable 414. [1]

In having your discussion with the Minister for Foreign Affairs
[2] you will no doubt have in mind the recent discussions between
Churchill and Roosevelt and the subsequent statements by Roosevelt
to Japanese Ambassador in Washington [3] to the following effect-
(a) warning that if Japanese Government pursues a policy of
military domination by force or threat of force United States will
be obliged to take any measures deemed necessary for safeguarding
American rights and interests.

(b) intimation of readiness of United States to seek general
settlement in Pacific area if Japan is ready to suspend her
expansionist policy and embark on peaceful course.

We understand that so far Japanese Government has returned
conciliatory replies though the difficulties in the way of Japan
abandoning aggression and making some fair settlement with China
will be apparent.

The United Kingdom Government are proposing to support the
American approach and we have concurred in a formula to the effect
that His Majesty's Government, who have no aggressive intentions,
feel it necessary in the interests of peace to let the Japanese
Government know that any further Japanese encroachment in South
West Pacific area would compel His Majesty's Government to take
counter measures even though these might lead to war between Great
Britain and Japan.

In view of the steps being taken by the United States and Great
Britain I suggest that your own principal line of discussion with
Foreign Minister should include not only a vigorous denial of
encirclement but also the strongest suggestion that there is
complete unanimity between Great Britain and Dominions and a high
degree of concert between Great Britain and the United States.

You will of course in no sense make any suggestion which could be
construed as an isolated warning on the part of Australia.

FADDEN