CANBERRA, [1 January 1942] [2]

Have cabled Australian Minister in U.S. [3] in following terms.

Begins.

Reference your No. 1240. [4] The Chiefs of Staff have submitted
undermentioned views on following proposals in your telegram:

(a) That Australian mainland and territories should be excluded
from South Western Pacific Area.

(b) That 'Australian Area' should include Australia, New Guinea,
Bismarck Archipelago, the Solomon Islands, New Hebrides and Fiji.

(c) That Australian Area should be excluded from Area in Pacific
for which U.S. fleet based on Honolulu is responsible. 'Our view
of these proposals is that their adoption would result in
Australia and New Zealand being isolated and left to defend
Australia[n] [5] Area without allied assistance and with entirely
inadequate naval military and air resources thereby endangering
line of sea and air communications between U.S. and Australia upon
which defence of South Western Pacific Area mainly depend[s].'
(ii) My Government point out that the attitude of the U.S.-British
Planning Staffs is quite out of harmony with cable received by
Prime Minister from Churchill regarding agreement reached with
President. [6] In seeking our assent CHURCHILL referred to 'These
arrangements designed largely for [your] interest and safety' and
clause (H) states 'The U.S. Navy will remain responsible for the
whole of Pacific Ocean cast of Philippines, and Australasia
including U.S. approaches to Australasia'.

(iii) It would appear that general terms of agreement have now
been turned over to technical advisers to work out the strategic
plan and they are proceeding to whittle the agreement down by
their own conception of how effect should be given to it. If this
is the case, no protest you make can be too strong and you should
immediately seek an interview with CHURCHILL and PRESIDENT to
place our view before them in most emphatic manner possible.

(iv) It appears to us to be an amazing paradox, following
declaration framed to express unity of our aims and efforts, that
a plan should be put forward which viewed defence situation in
Pacific in such a piecemeal manner.

(v) In our [opinion the plan is] strategically unsound. [The]
Japanese have only to avoid main allied concentration in South
West Pacific Theatre and attack Australian Area which will be
weakly held in order to block line of communication from America
and prevent the use of Australia as base.

(vi) This would frustrate vitally important aim of clause [g] of
agreement to use Australia as channel through which men and
material from America could be moved into South West Pacific
Theatre. Ends.

In your telegram to myself seeking our assent to [our] [7] unified
command and plan of collaboration you introduce matter as
involving arrangement designed to safeguard our interests and
safety. Our Chiefs of Staff are unable to see anything except
endangering of our safety by proposal to exclude Australian
mainland and territories from South West Pacific Area.

I do strongly press your personal examination of our advisers'
view.