AGENDUM No. 147/1940 [1] AND SUPPLEMENT No. 1 [2]-THE EFFECT OF
THE POSSIBLE OCCUPATION OF THE NEW HEBRIDES AND NEW CALEDONIA BY
JAPAN AND THE STRATEGICAL POLICY GENERALLY IN RELATION TO FRENCH
COLONIES

(Previous reference-War Cabinet Minute No. (345) [3]).

In regard to the Commonwealth Government's cablegram No. 303 of
18th June to the United Kingdom Government relative to the New
Hebrides and New Caledonia, the following replies of the United
Kingdom Government in cablegram No. 187 of 21st June were noted:-

(i) That a request had been made to U.S.A. for a declaration to
the effect that it would not tolerate any alteration in the status
quo in the Far Eastern Pacific. It was observed from a later
cablegram (D.282 of 23rd June) that the United States Government
could not at present go beyond the declaration made by the
Secretary of State [4] some time ago in connection with the
Netherlands East Indies, but suggested that better results might
be obtained from immediate United States diplomatic activity in
Tokyo.

(ii) That the United Kingdom Government was of the view that to
forestall Japan by occupation of the islands with our forces would
provide them with a dangerous pretext for similar action on their
part against the Netherlands East Indies.

2. It was decided that representations should be made to the
responsible French authorities in New Caledonia and the New
Hebrides that the Commonwealth Government would be glad to enter
into discussions with them on trade relations, and that the
Commerce Department should arrange for a review of the position
and the extension of an invitation, through the appropriate
channels, for representatives to come to Australia. It is
particularly to be ensured that due regard is paid to Japan's
present trade relations with the New Hebrides and New Caledonia,
to avoid any ground for complaint that the present volume and
nature of her trade with these islands is being prejudiced. Advice
of these proposed negotiations is to be forwarded to the United
Kingdom and New Zealand Governments.

3. Following a discussion generally regarding the strategical
policy which should be adopted to encourage resistance in the
French colonies, and the action taken by the Australian High
Commissioner as outlined in cablegram No. 461 of 23rd June [5],
agreement was expressed with the attitude of the United Kingdom
Government, an outline of which is contained in the following
summarised statement in cablegram Z.134 of 20th June from the
Dominions Office to the United Kingdom High Commissioner in
Australia:-

'In general we do not think that with our very limited resources
we can attempt to occupy French oversea territories but in some
cases our control of sea communications should enable us to deny
the resources of these territories to the enemy. We hope it may be
possible to stimulate continued resistance on the part of the
French Colonial Empire forces.'

(NOTE: The following relevant cables should be noted:Z.127 of 19th
June;

Z.134 of 20th June;

No. 194 of 24th June [6];

Z.152 of 25th June. [7])