The establishment of Australian representation in Malaya
(Singapore) is a matter of some importance. It will be recalled
that Mr. V. G. Bowden was appointed the Australian Official
Representative in 1941. [1] Our sources of information in South
East Asia now are few, and then not our own. Advices concerning
what is happening in the area are infrequent.

2. If our Pacific (and Far East) policy is to be balanced and well
informed, it is essential that Australian observers should be
posted at selected points. Malaya ranks high in importance among
such points because the ultimate security of Australia depends on
stable conditions in the countries of South East Asia. Stable
conditions imply the raising of the living standards of the native
peoples. We need first hand evidence of the efforts being made by
the United Kingdom to ensure the progress and welfare of the
inhabitants of Malaya. We also require close observation to be
made of the complex racial problem in that region-in particular
the attitude of Chinese and Asiatic groups to the ruling
authorities.

3. Malaya is also of significance to us:-

(a) because of its central position at the cross roads leading to
the Indian and Pacific Oceans and to Asia in the north.

(b) because it will probably be the hub of the British defence
system in the Far East-I understand that the Royal Navy propose to
make full use of Singapore; also that Singapore will become the
headquarters of a British Far Eastern Command.

(c) because if, as is certain, American bases are established in
the Pacific Singapore as a British base will be a main link in the
security chain protecting Australia.

4. Commercially: Malaya is of world importance in the raw material
trade especially in tin and rubber. Its interest to the sterling
area is peculiar in that, together with South Africa, it is the
main source of U.S. dollars owing to its heavy import surplus with
America. Singapore has been and undoubtedly will be again one of
the great ports of the world and an international bazaar at which
the commerce and ships of all the trading nations will meet.

Australian shipping companies and other Australian groups already
have interests in Malaya. These interests can be expanded and a
much larger Australian trade developed if we have first hand
knowledge of and constant advices regarding the possibilities of
the Malayan market. A statement showing Malayan trade figures is
attached. [2]

[matter omitted]

8. It is suggested that the authority of Cabinet be sought for the
re-establishment of Australian representation in Malaya and for
the appointment, for two years and subject to salary and other
conditions to be arranged departmentally, of a suitable
representative responsible to the Minister and Department of
External Affairs.