142 Cablegram From High Commission In London To Departments [1]

4th July, 1956

SECRET

LONDON

1828 PM.8.

[matter omitted) 2. Meeting [2] then turned to Japan. Mr Holland [3], describing the experience of his recent visit, thought Japanese resentment over denial of trading opportunities with China and continued dependence on United States aid and protection was likely to increase and focus on the United States and the Commonwealth. He felt the Commonwealth should take some action to ensure Chinese admission to United Nations (perhaps at the price of admission of Communist China) and try to make United States aware of Japanese trade difficulties.

3. Mr Menzies thought that Australia and all other Commonwealth countries had done all they could to get Japan into the United Nations and to improve relations with her. Issues between Australia and Japan were being worked out amicably. But we still needed to know more about the future pattern of our relationships with Japan, thus our reservations in respect of GATT. He thought the Commonwealth should not try to make any great play over Japan at this time but he agreed that Commonwealth Governments should individually take the occasion to discuss with the United States implications of the present United States - Japanese relationship and of Japan's exclusion from the China trade.

1 The Departments of External Affairs, Defence and the Prime Minister.

2 The Seventh Meeting of the Commonwealth Prime Ministers' Conference, on 4 July.

3 Rt Hon. S.G. Holland, Prime Minister of New Zealand.

[AA : A1838/278, 3103/10/1, iv]