For Army, Melbourne. General Squires [1] from Northcott. [2] The
Minister telegraphed the Government today summary of Foreign
Office appreciation on the Far East situation best summed up by
the British Ambassador at Tokyo as follows:-

'Japan has her hands far too full in China and is too apprehensive
of the United States in its present mood to think seriously of any
move involving danger to Australia and New Zealand or to the
Territories in which those Dominions are interested.' [3]

2. After most interesting six days visit to both British and
French front my appreciation is that the British strength in
France will be the main factor in the first round. Any serious
reversal or defeat in France will provide opportunity for all
fence sitters to make their demands and become difficult. This
applies to the Far East as well as in Europe.

3. The New Zealand Government has sanctioned the despatch of the
first Echelon of their force to Egypt as soon as possible after
20th January. This movement depends on the earliest date that we
can despatch our first brigade group. Owing to the shortage of
shipping the War Office wish to arrange the dates of despatch of
both forces so that the same ships can be used on alternative
trips. If possible our force leave December and ships return New
Zealand otherwise we follow them.

4. C.I.G.S. [4] informed me that provided our first contingent
sailed 15th December or as soon as is possible he expected to be
able to withdraw six regular battalions from Palestine in time to
be available France early spring. Delay of sailing of the first
contingent would probably cause the postponement of this
withdrawal.

5. Actual garrison duties Palestine will be taken over by Yeomanry
but the War Office unlikely to be able to withdraw regular troops
unless our force is available as a reserve although still engaged
in training.

6. C.I.G.S. is anxious to get early decision as shipping already
taken up in anticipation of our requirements.