With reference to the discussions had last week with the
Commonwealth authorities by yourself and Captain Dubois of New
Caledonia [1], it is desired that you should make a communication
along the following lines to His Excellency the Governor of New
Caledonia [2]:

His Majesty's Government in the Commonwealth of Australia has
considered the question of assistance to New Caledonia in the
light of the report of the Australian Military Mission to New
Caledonia and the recommendations of its Service Advisers.

2. In view of the assurances given to the Commonwealth Government
by Captain Dubois on 17th April that-
(a) the political situation in New Caledonia is definitely
stabilised in favour of the Free French;

(b) the disaffected element is not capable of bringing about a
change in the situation because they lack 'dynamic' organisation
and arms;

the Commonwealth Government is prepared to grant certain measures
of assistance to New Caledonia.

Defence Measures
3. The Commonwealth Government has decided to make available
supplies of arms, clothing and equipment to New Caledonia as set
out in the attached Schedule A. [3] It has also reached certain
other decisions respecting military assistance to New Caledonia,
which are shown in Schedule B. [4] Attention is invited to the
following matters in respect of which the concurrence of the New
Caledonian Administration and also of General de Gaulle [5] is
necessary:-

(a) The establishment of an Air Advanced Operational Base
(including an aerodrome and flying boat base) in New Caledonia and
the location permanently in New Caledonia of nucleus R.A.A.F.

personnel (approx. 40) required in connection with the
establishment and maintenance of the base. Personnel and equipment
to be under the control and direction of the Commonwealth
Government which will be solely responsible for the operation of
the base.

(b) The provision by Australia of instructors for training New
Caledonian personnel in the use of arms and technical equipment
made available by the Commonwealth Government, such instructors to
be withdrawn when the training of New Caledonian personnel is
completed.

(c) The despatch from Australia to New Caledonia of an advance
party to arrange for the installation of the coast defence battery
and to undertake the training of New Caledonian personnel. When
the training of New Caledonian personnel has advanced
sufficiently, the party will return to Australia.

(d) The despatch to Australia of two officers and ten other ranks
of the New Caledonian Military Forces for training in connection
with the operation of the coast defence battery.

(e) The proposal to establish military and air liaison with New
Caledonia, it being understood that the duties of the Australian
Officers who would be made available to New Caledonia will be
solely connected with the development of effective military
liaison between Australia and New Caledonia. Details of such
arrangements will require further consideration, but adoption of
the arrangement is not to imply any alienation of New Caledonia's
sovereignty and independence.

(f) The principles governing the provision by the Commonwealth of
financial assistance to the Free French Forces in the Pacific as
outlined in paragraph (e) of Schedule B. Advice as to the extent
to which the New Caledonian Administration is able to assist in
connection with local defence works was desired.

Economic Assistance
4. The Commonwealth Government has also decided that New Caledonia
should be accorded the same treatment as an Australian State or
Territory of the Commonwealth, insofar as the purchase by New
Caledonia of its requirements from Australia is concerned and that
export licences will be granted in accordance with this principle.

5. The Commonwealth Government will also arrange for the
settlement of outstanding economic questions with the New
Caledonian Administration especially those relating to coffee and
the stock of copra ex-'Suva' as soon as possible.

Copies of the Schedules A and B above referred to are attached
hereto.

W. R. HODGSON