274 Mr R. G. Casey, Minister to the United States, to Department of External Affairs

Cablegram 96 WASHINGTON, [24] [1] May 1940, 6.53 p.m.

SECRET

My telegram No. 94 to Canberra, 21 to London. [2]

Having seen press reports of German advice to Tokyo that Germany was not interested in Netherlands East Indies problem and heard that my Netherlands colleague [3] regarded this as giving Japan the all-clear signal, I enquired this morning views of State Department. Mr. Hornbeck [4] informed me that the more jingoistic Japanese press is interpreting this as a signal for Japanese action, but State Department believes that Japan will not make a move until they are assured of German success in Europe made [sic] it quite safe. Mr. Sumner Welles [5] assured Lord Lothian [6] last evening that United States had no intention of moving fleet from Hawaii to Atlantic although two heavy cruisers might be detached to patrol United States coast and South America. [7]

1 All Canberra copies of this cablegram carried the words 'Dated 23rd May, 1940'. The Washington copy was headed 'Despatched May 24th, 1940' (see file AA: A3300, 13).

2 Document 256.

3 Dr A. Loudon.

4 Adviser on Political Relations, U.S. State Department.

5 U.S. Under-Secretary of State.

6 U.K. Ambassador to the United States.

7 This cablegram was repeated as no. 22 to S. M. Bruce, High Commissioner in London.

[AA: A981, USA 78, v]