LONDON

1828 PM.8.

[matter omitted)
2. Meeting [2] then turned to Japan. Mr Holland [3], describing
the experience of his recent visit, thought Japanese resentment
over denial of trading opportunities with China and continued
dependence on United States aid and protection was likely to
increase and focus on the United States and the Commonwealth. He
felt the Commonwealth should take some action to ensure Chinese
admission to United Nations (perhaps at the price of admission of
Communist China) and try to make United States aware of Japanese
trade difficulties.

3. Mr Menzies thought that Australia and all other Commonwealth
countries had done all they could to get Japan into the United
Nations and to improve relations with her. Issues between
Australia and Japan were being worked out amicably. But we still
needed to know more about the future pattern of our relationships
with Japan, thus our reservations in respect of GATT. He thought
the Commonwealth should not try to make any great play over Japan
at this time but he agreed that Commonwealth Governments should
individually take the occasion to discuss with the United States
implications of the present United States - Japanese relationship
and of Japan's exclusion from the China trade.