Further to my 1040 [1] and 1122. [2] Dean Acheson to-day handed me
an Aide-Memoire as follows:-Begins.

'The United States Government and the people of the United States
deeply appreciate the aid which Australia has rendered to the
United States Forces in the South-West Pacific Area. This aid and
the spirit in which it has been given are splendid examples of the
principle of mutual aid governing our common war effort. It is,
however, the feeling of the United States Government that it would
be in the interest of both countries to carry the principle of
mutual aid a step further toward complete realisation.

It is proposed, therefore, that the Government of Australia extend
the Reciprocal Aid programme to include the furnishing without
payment by the United States of those materials which are imported
from Australia or from Australian sources by agencies of the
United States Government.

The United States Government's procurement programme contemplates
the acquisition in Australia during the fiscal year beginning 1st
July, 1943, by official agencies, of the following commodities-
beryl, lead, livermeal, tallow, [t]antalite and zinc.

The foregoing is not and by its nature cannot be a definite
statement of the specific commodities which the United States
Government might wish to bring within the programme. It is
submitted rather as an indication of the approximate scope of the
contemplated programme.

A similar suggestion was recently made by the United States
Government to the British Government and the latter has agreed to
furnish as Reciprocal Aid materials imported by United States
Government agencies from the United Kingdom, Southern Rhodesia and
the colonies. In view of this the United States Government is
currently advising the Governments of New Zealand, the Union of
South Africa and of India, as well as of Australia, of the
procurement programmes which the United States Government hopes
may similarly be transferred to a Reciprocal Aid basis by these
countries. It is understood that the British Government has kept
the Government of Australia informed regarding its conversations
with the United States Government on the subject.' [3]

Ends.

Acheson added:-

(a) that it was hoped that before the last week in the month the
matter might have reached such a stage as to make it possible to
include a statement of the broad result in what was laid before
the United Kingdom Parliament;

(b) that matters of detail and procedure would require
consideration, and
(c) that some of them had already been raised by Waley. He would
therefore be grateful for an early reply.