Your 293. [1]

The recent Conference in Wellington between Australia and New
Zealand representatives has given consideration to the proposed
Conference on employment and also to the views of the United
Kingdom Government in that connection.

The Conference expressed their keen disappointment at the reply to
the suggestion that the United Kingdom Government should approach
the United States Government on the subject of a Conference on
employment, and in particular paragraph 5 of your telegram. The
Conference felt after full consideration that they were not
prepared to alter their previous determination to press for a
special Conference at an early date for the purpose of an
Employment Agreement.

2. They desire to point out also that they have never disagreed
that the subject of domestic policies of employment belongs to the
general field of Article (7). But that does not in their view mean
there should be no separate Conference or separate agreement.

Other subjects within the Article (7) field have been discussed
separately at special Conferences and incorporated in separate
draft proposals. The suggestion you make that the proposal for an
international agreement on employment might be considered not by a
separate Conference but along with other proposals for
international arrangements within the framework of Article (7) as
they take shape is therefore quite inconsistent with procedures
which have been adopted in respect of other subjects and must have
the effect of pushing employment obligations into the background.

For instance at Bretton Woods employment was held to be outside
the terms of reference of the Conference and no binding commitment
to Governments regarding domestic policies was recommended. [2]

3. Both Australia and New Zealand regard this subject as
fundamental and one which cannot be dealt with by the inclusion of
a resolution or declaration in each of the other agreements. Not
only do they consider that a special Conference should be held but
they believe it should be held before other proposals are
incorporated in agreements.

4. The representatives of the two Governments have at the
Wellington Conference therefore agreed as follows-
We regard an Employment Agreement by which signatories undertake
to pursue internal policies of full employment and increased
consumption as fundamental to the success of all aspects of
international collaboration designed to increase living standards.

The calling of an Employment Conference with this objective in
view should take precedence over all other international Economic
discussions. We propose, therefore, to approach the United States
Government with the proposal that a Conference be called by the
United States Government, in conjunction with the United Kingdom,
Australian and New Zealand Governments. [3] 5. Draft documents are
in the course of preparation which should in the first instance be
discussed with the United Kingdom and the United States
Governments and these will be forwarded to you as soon as
possible.