CANBERRA

The Department of External Affairs presents its compliments to the
Embassy of Japan and has the honour to refer to the latter's note
of 30th December, 1954 [1], in which the Embassy requested further
details of the matters which the Australian Government has in mind
for discussion with Japan at the talks referred to in the
Australian note of 17th November, 1954 [2], directed towards the
examination of mutual trade problems.

The Department of External Affairs appreciates the desire of the
Government of Japan for clarification. After the changes in the
GATT, resulting from the review recently completed in Geneva, have
been considered by Governments concerned, the Australian
Government will be in a better position to determine its attitude
towards the proposals involving formal trade or tariff
negotiations. The Department considers that, in the meantime,
there would be mutual advantages in arranging informal and purely
exploratory talks between the Embassy and Australian officials
representing the Departments primarily concerned.

If this proposal is acceptable to the Embassy, the Department
would be glad to make the necessary arrangements for these talks.