Extracts NEW DELHI, 11 April 1947

REPORT ON ASIAN RELATIONS CONFERENCE
23RD MARCH - 2ND APRIL, 1947

The Department of External Affairs has already received from this
office a steady bombardment of cables, Rapporteurs' Reports and
newspaper articles describing the course of the Conference. They
should provide a great deal of the material required for a just
appraisement of the work performed by the Conference.

[matter omitted]

None the less the conference established that there are many
causes for dispute amongst the Asian countries themselves, both on
the score of migration and internal discrimination and that
Australia, if she plays her cards skilfully, should be able to
avoid a concerted challenge. The countries which appear most
involved in difficulties of this sort are Burma and Ceylon. We
have reported by cable on the approaches to the Australian
observers by the leader of the Burmese delegation, Justice Kyaw
Myint, and his suggestion that Australia should continue her
migration policy, and his veiled hint that Australia and Burma
might profitably 'get together'.

ECONOMIC DISCUSSIONS

A wide field was covered, but the main manifestation was a desire
to curb the power of foreign capital investment and the singular
lack of any practical proposals to give effect to this.

POINTS FOR CONSIDERATION

(1) It is questionable how far it would at present be advisable
for Australia to become involved in-let alone take a leading part
in convening-a South-East Asian Regional Conference. India is at
present trying to group the Asian countries together. The odds,
with Chinese opposition, are against this but in the meantime they
would be unlikely to welcome direct initiative or organisation
from outside. China would certainly oppose such a move and India
would be reluctant to surrender the initiative to anyone else.

Australia might by all means discuss in a friendly way with India
the possibility of Australia being associated in any such move but
talks with India should precede anything else.

(2) The same general object can be achieved in other less
political and less controversial ways. For example, Australia
should send a strong delegation to the forthcoming (preparatory)
Asiatic Conference of the I.L.O. [1] This delegation should be
well equipped with material to back up our claims to be ready to
promote all forms of development in South-East Asia. They should
proceed tactfully and avoid blatant assertions of Australian
superiority in the social and labour field.

(3) The importance of maintaining Indian goodwill still remains,
although the likelihood of India's assuming leadership in South-
East Asia now appears much less. Foolish actions or provocative
remarks could still unite Asian countries against Australia. An
intensification of this could still lead to some complaint before
the United Nations against Australia. Thus, indirectly, it is our
world status that we seek to preserve in our relations with India.

(4) While principles on which Australian migration policy is based
must remain, it may be possible to make our rules somewhat more
flexible and less apparently exclusionist. Certain cultured and
deserving types of Asiatics who do not fit into present categories
might usefully be admitted and in such cases, the necessity for
renewing their permits annually might be waived.

(5) The desirability of consideration being given by the
Australian Government as to which of the Asian countries are most
worth cultivating: the assumption is that smaller countries can be
fairly readily tied to Australia economically, so that if we
handle our power benevolently they will always be reluctant to
enter into controversy with us or to question our policies in
public. Most likely examples are Indonesia and Ceylon, possibly
with Burma and Siam next. Both India and China are too big to be
much influenced by us in this economic way. The approach to them
must be along more general paths of goodwill.

THE AUSTRALIAN OBSERVERS

Messrs. Packer and McCallum constituted a most pleasant and
capable pair of observers. It is no exaggeration to say that they
stood out in a rather mixed gathering and it was noticeable that
their company was frequently sought by delegates of all groups.

When one also takes into account that they were both unwell at
several stages, their success is all the more praiseworthy.

Finally, they quickly established and maintained most pleasant
relations with all members of this office.