1. Reference Dominions Office cablegram No.393 [1] relative rocket
range.

2.Paragraph 2. Firm proposals for the use of the whole of
Salisbury factory have been received from General Evetts, and are
now before the Defence Committee.

3. Paragraph 3. We agree in principle regarding the proposals for
the joint body in London. We consider Australian representation
should consist of a representative of the Department of Defence, a
representative of the Department of Munitions, and a member of the
High Commissioner's staff representing the Commonwealth Treasury.

The representative of the Department of Defence would co-opt
technical staff officers representing Navy, Army and Air, as
necessary. We suggest that the Joint Body would discuss all major
projects, questions involving provision of large scale facilities,
the programme of work for the range, and also policy and financial
questions arising from these matters, and that the Australian
representatives would communicate proposals arising out of these
discussions to the Department of Defence through the Australian
Defence Representative, London. The Defence Representative will
ensure that the Australian High Commissioner is informed of all
important matters which may affect Australian Government Policy.

We also agree that all major projects and questions involving
provision of large scale facilities should be submitted to
Governments for approval. It is suggested that any technical
matters requiring joint consideration should also be dealt with by
this body, and that, for the Australian part of these, the
Australian representatives communicate with the Department of
Munitions, whose Minister has been charged with the execution of
the Long Range Weapons Project. See paragraph 6 below.

4. Paragraph 4. The Australian Government will co-operate in
drawing up as quickly as possible estimate of costs which will be
sufficiently comprehensive and accurate for the purpose of
negotiating a basis for financial agreement. The Australian
Government is prepared to authorize, as necessary, preparatory and
other work for those portions of the project which have been
approved and which need to be put in hand in the meantime on the
understanding that the expenditure will eventually be apportioned
between the two Governments on whatever basis may be ultimately
agreed. Certain exploratory work is now being carried out by the
Department of Works and Housing, the cost of which will be
financed initially from Australian funds available this financial
year which ends of 30th June. The proposal regarding authority for
Evetts to agree to commitments for expenditure in Australia up to
(A)500,000 subject to apportionment later is noted. Regarding
expenditure in the United Kingdom, we should be glad if you would
consult with the High Commissioner in London, as proposed by you
in the last sentence of your paragraph.

5. Paragraph 5. Discussions have now commenced between Evetts and
the Australian Guided Projectiles Committee on matters for
inclusion in the agreement other than financial aspects which are
being deferred pending the preparation of detailed estimates. It
is noted that participation of Australian personnel in work done
in the United Kingdom would be welcomed, and that the Australian
Government will be given full information about this work.

Provision will be made for these points in the draft agreement.

6. As an interim measure, and until the final agreement is drawn
up, agreement has been reached between the Ministers for Defence
and Munitions, on the one hand, and General Evetts on the other,
to the setting up of a Long Range Weapons Board of Administration
under the Minister for Munitions with the immediate object of
providing and administering the facilities required in accordance
with the approved policy. This Board is to consist of the
Controller-General of Munitions Supply as Chairman, General Evetts
as Deputy Chairman and Chief Executive Officer, representatives of
the Departments of Defence, Navy, Army, Air and Works and Housing,
the Chief Scientific Officer and Chief Administrative Officer,
British Long Range Weapons Organisation Australia, and the
Assistant Secretary, Department of Munitions. Joint Secretaries
are to be supplied by Munitions and British Long Range Weapons
Organisation Australia. We should be glad of your concurrence in
this machinery, which is already functioning provisionally and
satisfactorily.