Your telegram No. 330 of 18th November. [1] Basing of British
Pacific Fleet on Australia.

2. The Committee referred to in my Cablegram No. 269 of 16th
October [2] has completed its main report [3], which has been
considered by War Cabinet in relation to our other commitments and
the decisions taken by the Government to place our war effort in a
state of balance.

3. The Commonwealth Government has now approved of the
recommendations made by the Committee subject to all Royal Navy
requirements, whether supplies or services, being processed
through the same departmental machinery as operates in the case of
corresponding Australian Service projects and to subsequent
recoupment by the United Kingdom Government of expenditure
incurred in meeting these requirements.

4. Twenty copies of the Committee's report have been forwarded to
the Deputy Secretary (Military) United Kingdom War Cabinet, but
you will no doubt wish to have advance advice of the more
important features of the report. These are therefore summarised
in the succeeding paragraph.

5. (a) In terms of value the contribution from Australian
resources, as recommended by the Committee, to the end of 1945
totals 22,150,000 (including 1,000,000 to cover errors in
estimation and minor variations). This total is only approximate
and is incomplete in that it includes many items such as the use
of existing Service and civil facilities, the value of which
cannot be estimated even roughly.

(b) No contribution of repair personnel can be made towards the
requirement of 5,000 for new Royal Navy installations.

Note: You were advised in my Telegram No. 298 [4] that at June,
1945, there would be a deficiency of at least 1,700 repair
personnel on Australian requirements alone and that there was
little likelihood of this position being remedied. It is noted
from paragraph 3 of your Cablegram No. 330 of 18th November that
about 1,700 can be made available from the United Kingdom during
the second half of 1945.

Admiral Daniel [5] has advised that these will be uniformed
personnel and that they will be employed in a separate R.N. repair
establishment and will not work in association with Australian
civilian personnel.

(c) The estimated cost of total Royal Navy works requirements is
7,625,000. Urgent works projects totalling 3,843,000 can be
undertaken. The extent to which further new construction will be
necessary is dependent on what facilities can be released in time
by the United States Forces and this will be considered again and
further advice sent you when firm details of such releases are
available. Materials are in short supply and it may be necessary
to request you to supplement Australian supplies.

(d) Except for a few minor items that are not physically available
in Australia, food requirements to end of 1945 to the value of
10,657,000 will be met.

(e) Stores that can be supplied include Medical 250,000; Dental
12,000; Naval Store Items 771,000; Clothing 250,000; and
N.A.F.F.I. (non food) 410,000.

(f) Supply establishment personnel requirements are stated in your
Telegram No. 301 of 30th October [6] to be 4,875 by mid 1945. Of
these, approximately 3,600 including all clerical personnel can be
provided, but difficulty will be experienced in meeting
requirements in certain categories of industrial and marine
labour. The balance of approximately 1,200 would need to be
supplied from the United Kingdom in categories to be determined by
Navy in consultation with our manpower authorities.

Note: It is confirmed, as requested in your Cablegram No. 330 of
18th November, that arrangements will be made to discharge, unpack
and stow stores shipped or about to be shipped to Australia.

(g) Satisfactory arrangements can be made for required hospital
accommodation.

(h) Machinery, plant and machine tools to an approximate value of
216,000 can be provided.

(j) Small marine craft can be provided to the value of 684,000,
exclusive of engines, which would need to be provided by R.N. The
possibility of giving further assistance is being examined.

(k) Vehicles and automotive equipment requirements to an
approximate value of 870,000 can be met.

(l) Satisfactory arrangements can be made in regard to
communications on the mainland.

6. In accordance with your earlier telegrams all urgent
requirements for works and supply items have already been put in
hand and on receipt of requisitions from the responsible Royal
Navy authority in Australia action will be taken by the
Departments concerned to process the balance of the fleet's
requirements covered by the Committee's recommendations as being
within Australia's capacity to provide.

FORDE