Talks1 were conducted in cordial atmosphere. Agreed draft of Communique and Annex for submission to Prime Ministers follows.
We are of view that texts reflect accurately the Australian Cabinet Decision. New Zealand officials are fully aware of reasoning behind the Cabinet's amendments to Permanent Heads' Report.2
Two document approach results from belief that the necessary broad in principle approach of a Communique and the more detailed approach dealing with scope and techniques require separate treatment. New Zealand officials strongly favoured as much detail as possible being included in second paper to allay possible misunderstandings in mind of N.Z. public.
The only new emphasis is the question of freedom of movement of people between the two countries. This has attracted considerable interest arising from refrence to finding of Williams Royal Commission. Text is we believe satisfactory but required considerable discussion before New Zealand side would accept.
If there are difficulties in this area would appreciate earliest possible advice.
[NAA: A1838, 370/1119118, xvi]