Your D.650 and D.651. [1]

It appears to us [2] that the positive value of a declaration of
the nature proposed lies in the fact that the three main Military
powers, viz., British Commonwealth, United States and Soviet
Russia, would definitely commit themselves to post war
collaboration, and to policing the peace settlement.

2. But the terms of the obligations are of such a nature that it
is extremely doubtful whether China could be regarded as capable
of fulfilling them. For this reason the declaration might lose
much of its positive effect, if China is included.

3. It may have been politic from the point of view of public
opinion in the United States that China should be proposed as a
party to the declaration. It is noticeable that it is not proposed
that China should be represented at the Three Power Conference
where the proposed declaration is to be listed and we doubt the
inclusion of China in the declaration.

4. From the point of view of effectiveness, of weight, and of
avoidance of future difficulties we believe that the three major
powers only should be associated, viz., the United States, the
British Commonwealth of Nations, and the Soviet Union. We
appreciate that this entails prior agreement between the members
of the British Commonwealth, but if they cannot agree amongst
themselves it is obvious that wider agreement is impossible.

5. As to the terms of the proposed declaration-
(a) We agree to your amendment para 3.

(b) We agree to your first proposed amendment para 4. We are not
prepared to agree to your second suggested amendment to para 4.

The words 'peace loving' and 'just part' may give rise to untold
difficulties. They may well be regarded as permanently excluding
present enemy powers from future participation and also as
contradicting a basic principle of International Law -viz., the
general principle of equality of States.

6. We regard paragraph 5 as of crucial importance. We consider
that in order to agree to it, Australia should either separately,
or as part of the British Commonwealth of Nations, be definitely
included as one of the parties to act on behalf of the community
of nations.

Appropriate drafting should make it certain that Australia is
included in the connotation of the community of nations. Our view
is that in this and analogous matters, it is desirable to give
recognition to the British Dominions who have contributed so much
to the Empire War Effort during the past four years.

The view is held to some extent in Australia that this principle
is very important, otherwise our status may decline to the
position existing before the Treaty of Versailles in 1919. It is
desirable to keep in mind that in 1926 the Balfour Declaration [3]
asserted the equality of status of British Dominions with the
United Kingdom in External Affairs.

7. Paragraph 5 of the Declaration goes to the root of the
proposal. We therefore regard it as essential that the views we
have expressed in paragraph 6 of this message should be given
effect to in form as well as in fact. [4]