1. Have discussed with Dr. Evatt the United States proposal on Japanese reparations presented to F.E.C. last week and cabled to Canberra by the Washington Embassy allotting shares to each country with United States putting major part of its own share back into pool.  The best course for Australia would seem to be to announce that she is willing to support United States proposal and as a contribution towards securing agreement is prepared to put 7% of her own share back into the pool on same conditions as United States provided that in the remaining 1% Australia's special claims to whaling ships and equipment are recognised when these items become available for removal. If Australia accepts such a course, it would be desirable to make our announcement as early as possible so that there will be no appearance of reluctance and so that we might be able to influence reactions of other countries to United States proposal before they become committed to a different course. We would appreciate comments as soon as possible. F.E.C. meets 13th November.
2. I have asked Embassy to ascertain what use United States intends to make of the 10% it is retaining for itself. Probably it will be given to Korea.