Japanese Consul-General  at present in Melbourne negotiating for 200,000 bales merino and 100,000 bales crossbred. He is prepared to give assurance regarding resale of wool and of woollen manufactures. Have indicated preparedness make interim supplies available, but no promise as to full requirements or qualities.
Please ascertain British Government's views as to price to be charged to Japan and other neutrals, also British Dominions such as Canada, and their ideas where payment should be made. We assume payment will be made London.