Reference your cablegrams Nos. D.1018 [1] and 363. [2]

1. We realize the difficulties which have caused you to raise the
question of withdrawing part of the United Kingdom's contribution
to the British occupation of Japan.

2. Your cablegrams were immediately referred to the Government's
advisers who are examining them, and further advice will be
forwarded after consideration of their observations.

3. The question of the withdrawal of the United Kingdom Brigade
appears to divide itself into the following aspects:-

(i) The relief of your stringent manpower position.

(ii) The effect of the withdrawal on the commitments of the
Governments participating in the B.C.O.F. arrangement.

(iii) The consequential effect of the reduction of the strength of
the B.C.O.F. on the obligations accepted by the British
Commonwealth in the Allied occupation of Japan.

4. We would hope to let you have our observations on 3(i) as soon
as possible.

5. It may require longer to consider 3(ii). This will certainly
involve an exchange of views between all Governments concerned and
will probably require detailed examination by the Joint Chiefs of
Staff in Australia.

6. In regard to 3(iii), it will be necessary to obtain the views
of the Commander-in-Chief, British Commonwealth Occupation Force
[3], and for the matter then to be considered by the Joint Chiefs
of Staff in Australia.

7. It is noted that you have authorised General Gairdner [4] to
inform General MacArthur of the matter, and that it is proposed to
carry out discussions between General MacArthur, General Gairdner,
and the Chief of the Air Staff.

8. In view of the set-up for the British Commonwealth Occupation
Force, it would appear that the Commander-in-Chief should be
brought into this matter forthwith, and that he should participate
in any discussions between your representatives and General
MacArthur. It is considered that these should be confined to the
necessity for the withdrawal of the United Kingdom Brigade, all
other matters involving relations with SCAP being carried out
through the normal channels.

9. We are informing the Commander-in-Chief, British Commonwealth
Occupation Force, confidentially of your proposal.