On 25th July the Ministry of Foreign Affairs announced that the
Chinese and Czecho-Slovak Governments were elevating their
respective Missions from Legations to Embassies.

2. This means that we are now the only Legation in Chungking.

3. Neither the Minister [1] nor the Vice-Minister [2] whom I have
seen in the last week referred to the matter, which in the absence
of instructions I have avoided. Yesterday in a private
conversation with Booker [3], the head of the European department
[4] referred to it.

He expressed the personal view that the situation if it continued
might suggest that we cared less about our relations with China
than certain other Countries whose interests in Pacific Affairs
and relations with China were much less important than
Australia's. He stated that he knew that the Generalissimo [5] and
the Ministry of Foreign Affairs would be glad to see the Legation
become an Embassy and that the Chinese Government would be
prepared to take the necessary initiative if it would be welcomed
by the Australian Government. He asked that further information be
conveyed to me.

As the matter may be raised with me in the near future, would be
glad of guidance as to the line I should take. [8]

OFFICER