My telegram 203.

You may desire to give some thought to the following in advance of
the conference [1] which we note with appreciation Petherbridge
[2] is to attend.

The Interim report of the Industrial Working Party which has just
been completed recommends that machinery be provided in
collaboration with S.C.A.P. [3] to co-ordinate generally the
development of requirements of E.C.A.F.E. region with Japanese
economy, and more specifically,
(a) Japanese capacity to produce and export capital goods.

(b) Japan's need of raw materials.

(c) Financial arrangements for facilitating any such mutual export
trade with Japan.

(d) Need for earliest possible execution of reparations removals,
as an integral part of industrial development plans of E.C.A.F.E.

region.

(e) Utilization of Japanese technical personnel wherever
practicable in development of the projects of the region.

Report claims that a study of Japanese capacity must be included
'in any realistic planning of industrialisation and economic
development of E.C.A.F.E. countries'.

The same report urges a study of financial arrangements of
E.C.A.F.E. region to determine,
(a) short and long term financial need of capital, both foreign
and domestic, for rehabilitating national economics and for
developing new industries
(b) means of improving banking and credit structures in order to
utilize domestic capital to the full
(c) means of securing foreign loans.

Memorandum follows.