1. At a recent conference convened at the request of Admiral Sir
Bruce Fraser, Commander-in-Chief, British Pacific Fleet, and at
which other Ministers directly concerned with the fulfilment of
Royal Navy requirements were present, a number of subjects
relating to the needs of the Fleet were discussed.

2. The impression was gathered from Admiral Fraser's
representations on the matters under discussion that he understood
the Commonwealth Government had accepted a commitment to meet
needs of the British Pacific Fleet as might from time to time be
requested by him in Australia.

3. You have been assured on more than one occasion of our
intention to make as full a contribution as practicable to the
needs of the United Kingdom forces based on Australia and this we
will continue to the utmost of our capacity. We, however, at the
same time, considered it only right that you should be aware of
the limitation that our own and the overall war effort placed on
our ability to assist.

4. The Commonwealth Government considers it a matter of the utmost
importance that there should be no misconception of our position
lest any misunderstanding should lead to impairment of the
effectiveness of the Fleet based on Australia and give rise to the
belief that failure on the part of the Commonwealth Government to
fulfil its accepted obligations had contributed to this.

5. You will be aware that dating from the Prime Minister's
discussions with you in London in May, 1944, the Commonwealth
Government has been at pains to point out that the extent of its
assistance in meeting the requirements of the British Pacific
Fleet could only be gauged after thorough examination by the
Australian Government departments concerned and that such
examination would have to take fully into account the difficulties
which Australia was encountering in rebalancing its war effort in
order to alleviate in some degree the strains and stresses which
had arisen from the considerable diversion of manpower to the
fighting forces and the direct civilian war effort when we were in
grave danger.

6. In our communications to the United Kingdom Government (see our
cablegrams Nos. 269 dated 16th October, 1944, and 298 dated 7th
November, 1944 [1],) we deemed it necessary to emphasise our
limited resources; the fact that we were faced with a stringent
manpower position in regard to meeting essential commitments; and
that to ease the shortage it had been necessary to order direct
extensive further releases from the fighting forces. We pointed
out the shortage of skilled labour to execute our own ship
repairs, advised that there was no prospect of our making any
labour contribution towards the request for 5,000 men for repair
of Royal Navy ships and asked that further consideration be given
to meeting the Royal Navy needs from United Kingdom resources.

These advices were furnished in order to make our position clear
and to guard against the Fleet arriving in Australian waters
without full knowledge of the degree of our ability to assist.

Since these advices were furnished, our manpower and materials
position has further deteriorated.

7. Again, in advising the United Kingdom Government of the result
of the examinations made as to the extent Australia was able to
assist, we have endeavoured to make it clear that, owing to
serious deficiencies in manpower and materials, it would be
necessary for the United Kingdom to make a substantial
contribution from its own resources in meeting the requirements of
the British Pacific Fleet.

8. In November, 1944, when it was feared the Admiralty might not
have fully appreciated the seriousness of advices furnished from
Australia regarding our limited resources, the Commonwealth
Government Accredited Representative in London was advised and
requested to explain the position to the United Kingdom
authorities. [2] It was felt that the liability to
misunderstanding would be best removed and advantages generally
accrue by discussion. Mr. Bruce reported that the position had
been discussed with First Lord of the Admiralty [3] and
responsible officers, and the serious manpower situation stressed.

[4] He further advised that the Admiralty were fully alive to and
sympathised with Australia's difficulties.

9. I have been at some length to cover broadly the position as
disclosed in our communications with the United Kingdom Government
regarding our limited capacity in view of Admiral Fraser's
impression, and in order that you may make provision for such
needs of the British Pacific Fleet as it is impossible for
Australia to provide. You will be aware that commitments have
already been approved to the extent of 25 millions for works,
supplies and services, and other proposals amounting to several
millions are at present being examined. A recent request by
Admiral Fraser was for 50 fighter pilots a month and Army signal
units for an advanced base. [5] In view of the Australian manpower
position, the opinion was expressed by me that, owing to the
changed conditions in Europe, the personnel should be brought from
the United Kingdom.

10. It is hardly necessary to again state that, whilst emphasising
our limited resources in manpower and materials and the
difficulties we are faced with in this regard in view of our heavy
commitments, we are in no way retracting from the assurances given
of assistance to the fullest extent of our capacity. Within such
limit we are executing with all possible speed the demands being
made upon our resources.

11. A copy of this cablegram has been furnished to Admiral Sir
Bruce Fraser.