1. Your E.11. [1] On the 13th October Dominions Office reported
U.S. proposal and text of proposed reply asking for our early
comments (D.1914, D.1915 [2]).

2. On 31st October Defence replied that they agreed with proposed
reply and that in the event of a division of ships between the
Allies 'a claim should be made for full British Empire share, but
we consider that units of the Japanese fleet would be of no value
to Australia'. [3]

3. Have spoken to Acting Minister, who was not consulted regarding
reply, which was apparently handled by Defence with merely naval
technical advice. Acting Minister asked me to convey message to
you that he strongly supports your attitude on this and considers
that as active participants we should be given full opportunity to
share.

4. I understand that nature of reply may be closely associated
with attitude of Defence on our post-war naval plans and in
particular their desire limit on naval personnel to be retained.

Telegram was sent with approval of Prime Minister. Am suggesting
to Makin he discusses matter with Beasley immediately. Makin will
also put it to Beasley that External Affairs must be far more
closely associated with all post-war defence plans especially when
matter so closely connected with principles of reparations. No
doubt he will also raise matter from point of view Minister of
Navy. Will keep you informed.