349 Australian Government to Forde

Cablegram 277 (extract), CANBERRA, 7 October 1948, 2.15 p.m.

IMMEDIATE SECRET

Your telegrams 211 and 274.

E.R.P.

No approach has been made to us from any source regarding off-shore purchases in Australia. Whole question is bound up with the negotiations between the United Kingdom and the United States authorities on E.R.P., and the dollar deficit of the Rest of the Sterling Area. These negotiations are in a delicate stage and we are most anxious to avoid doing anything which could cause embarrassment in relation to them. In the circumstances we think it unwise, for you to open up any discussion with the Canadians on Australia's attitude.

[AA : A1838, 855/5/4, II]