Your telegram No. 181 of 4th April [1] has been noted with much
interest by my Government, which is greatly concerned at the
present situation in North Africa and Greece, in both of which
theatres our Australian troops are so vitally affected.

Since the decision was first made to despatch Lustreforce the
position has materially changed to our disadvantage, as it has not
been possible to despatch to Greece the forces originally
contemplated, owing to the advance made by the enemy in its
successful attack on our positions in North Africa.

As in your paragraph 3, we regard the security of Egypt and the
Suez Canal as of much importance to Australian defence, and
suggest that the time is opportune to make a re-appreciation of
the position in the Mediterranean lest our efforts to assist
Greece and at the same time retain our hold in North Africa may
have a disastrous result in both theatres by the division of our
strength. We agree with you that the decision to send our troops
to Greece was strategically correct and retract in no way from
that decision, but we would now like to have a candid appreciation
of the position under the present vitally altered circumstances
and of the chances of maintaining our forces in Greece with our
reduced strength, particularly in view of the collapse of Yugo-
Slavia. If, however, it is considered that we are unable to hold
the position there, we suggest there should be no hesitation in
effecting a withdrawal before the position becomes irretrievable.

If such an appreciation could be supplied, it would, with the
information contained in your cable 181 of 14th April, and any
additional information that can now be furnished, be of great
value to my Government, which is naturally concerned regarding the
Australian troops now fighting defensively in these areas.