You will have seen the Prime Minister's reply to your omnium
gatherum telegram. [1] We agree that F.E.C. has been a somewhat
ineffective body, thanks to the Big Power veto, but we are not
anxious to see it wound up until there is something else to take
its place, and, what is more, something upon which we have
representation. We fully sympathize with your own aspirations
towards ensuring a full voice and vote for Australia in the Far
East settlement but we don't want any rearrangement under which
Australia is accorded such a voice while New Zealand is not. You
will appreciate, therefore, that your definite attempts to
terminate F.E.C., or to prevent its taking preliminary steps in
regard to the Japanese Peace Settlement, appear to us to have
unfortunate potentialities. We don't wish, in other words, to lose
our leg in, lest there should be no other way in which our
presence can be ensured.

There is one point in your telegram which is not entirely clear to
us and it is this, does your dislike of F.E.C. consideration of
the Peace Settlement also include the eleven member States of
F.E.C. being associated in the same task? We have always assumed
that this was not the case, but I will be very glad to have the
point clarified. [2] We ourselves, of course, take the view that
unless it is the eleven F.E.C. States New Zealand is not likely to
obtain adequate representation.

Another point I should add is that we never intended our support
for an interim conference to be regarded as other than support for
some procedure which would pave the way for the Peace Conference,
if that was immediately feasible. Personally, I don't think it is
immediately feasible, and, moreover, if some interim discussion
does not take place shortly there is a danger that the Big Four
will somehow or other go into a huddle and settle preliminaries
for themselves and for us; and that is why our people have always
felt, and still feel, that an airing of the question of procedure
in F.E.C. would be to the good. As you know, we were very anxious
to go ahead with this but reluctantly deferred any action in
deference to your contrary wishes.

I suppose by the time you get this note some definite arrangements
will have been made for the talks in Canberra. I have no doubt
myself that the British will agree, provided the end of August is
accepted as the date. It is a pity that this should be so late,
but, apparently, that is the price which will have to be paid.

As you will have gathered from the Prime Minister's telegram to Dr
Evatt, Mr Fraser is little interested in conferences this year,
and certainly not before, say, November at the earliest. I very
much fear that he is right when he says that he won't be able to
get to Canberra, and his absence will be most unfortunate, but, as
you know, they have a majority of three and a very strong
Opposition, and a most unreliable team of their own.