CANBERRA, 17 October 1949

CONFIDENTIAL
With reference to your confidential memorandum No.888 of 14th
September, 1949, enclosing a copy of a memorandum from the Thai
Ambassador in London proposing the establishment of diplomatic
relations and an exchange of Ministers between Thailand and
Australia, I set out below the terms of the reply which should be
conveyed to the Thai Ambassador.

'His Majesty's Australian Government is in receipt of the
memorandum presented by the Thai Ambassador in London to the
Acting High Commissioner for Australia in London on 14th
September, 1949, and notes the proposal of His Thai Majesty's
Government that there should be an exchange of notes between the
High Commissioner for the Commonwealth of Australia and the Thai
Ambassador in London, providing for the establishment of
diplomatic relations and for the exchange of representatives with
the rank of Minister.

'His Majesty's Australian Government regrets its inability to
accept the proposal of the Thai Government since, in the view of
the Australian Government, such an exchange of diplomatic
representatives should properly await the satisfactory completion
of negotiations already proceeding in Bangkok between the
representatives of Thailand and Australia in respect of the
settlement of outstanding claims for war loss and damage.

'His Majesty's Australian Government, taking this opportunity to
renew its previous assurances that it will entertain no objection
to the appointment of a Thai consular representative in Australia,
looks forward with pleasure to the earliest possible establishment
of normal diplomatic relations with the Government of Thailand.'