Japan. Instructions for reply have been despatched to Craigie and Dominions Office are cabling you the text.  I was informed that the reply opened the way for positive policy and general settlement I had advocated but have now seen cable to Craigie and do not consider that it justifies the statement.
I feel United Kingdom Government should make up its mind how far it is prepared to go down the lines I suggested and then inform Craigie and ascertain his views as to how far he considers he could successfully negotiate if so authorised.
I also consider that United States should be confidentially informed, also that endeavour should be made to induce United States to intimate unofficially that if Burma Road closed on demand of Japanese, as this would mean denial of supplies to China, they would feel compelled also to deny supplies to Japan.
I think further expression of your views would be most valuable as there is in my opinion a good deal of confusion in minds of United Kingdom Cabinet.