The United States Embassy is showing great interest in the question of Japanese admission to GATT countries. Economic Counsellor Waring  called on me this week and stressed their concern over impossibility of Japan feeding the population of 85 million when United States procurement orders and other assistance, which is at present bridging the Japanese balance of payments, declines, as it must. Procurement orders are already declining and Japanese exports are also falling. Unless Japan can find some markets she will be forced either into undesirable trade practices or into co-operation with Communist China.
2. Waring is inviting several Commercial Counsellors to meet him for a discussion of Japan's trade prospects. Carne will attend and learn what he can of the United States view, but will exercise great care not to commit Australia in any way.
3. I appreciate the complexity of Australian trade and tariff policy issues involved but feel that from the purely political viewpoint, great weight must be given to the considerations advanced by Waring and which I understand will have been put to you through the United States Embassy in Canberra.