1. The following cablegram has been received from the Prime
Minister of the United Kingdom [1]:-

Begins. 'In response to various suggestions and requests which I
made to the President [2] for the common conduct of the war
against Japan, I have received a message containing the following
passage:-

We concur in your estimate of the importance of the Indian and Mid
East areas and agree that reinforcements are required. We also
agree that the Australian and New Zealand Divisions now in that
region should remain. The 41st Division is leaving the United
States by the 18th of this month, reaching Australia about 10th
April. As replacement for Australian and New Zealand Division[s]
allotted to the Mid East and India, the United States is prepared
to despatch two additional divisions, one to Australia and one to
New Zealand. A convoy of one-half a division could leave about
15th April and the remainder of this division about 15th May.

Another United States division can also leave for the south-west
Pacific about 15th May. It should be understood that our
willingness to despatch these two divisions over and above the
41st which is already set up to go is based on the necessity for
economising in shipping and the continuing security of the Mid
East, India and Ceylon. It is therefore dependent upon the
retention of a similar number of Australian and New Zealand
divisions in those theatres. The above movements in the south-west
Pacific can be accomplished, provided that some twentyfive cargo
ships are withdrawn for one voyage from those engaged in transport
of lend lease material to the Red Sea and to China and scheduled
to sail in April and May.

2. Our 5th British Division is about to sail from the United
Kingdom. The President has also promised to give me the shipping
to move two additional British divisions (40,000 men) in April and
May and we are sending further British divisions in our own ships
during the next few months. How these divisions will be disposed
between the Mid East and India must depend upon how things are
going when they have rounded the Cape. We have also postponed for
an indefinite period the completion of the movement of various
United States divisions into Northern Ireland and Iceland on which
we had counted in order to facilitate all the above movements of
troops to the East and Far East.

3. You may be sure that the presence of considerable United States
forces in the Anzac Area will emphasize to the United States the
importance of protecting that area by its main sea power and also
of accelerating the equipment of existing Australian forces for
which I am pressing.

4. I hope in these circumstances you will feel able to leave the
9th Australian Division in the Mid East where its presence is most
sorely needed. We will send on the brigades of the 6th Division
which you agreed might be stopped off for a while at Ceylon as
soon as the min[imum] [3] arrangements for this all important
point can be made.' Ends. [4]

2. The following is the report of our Chiefs of Staff:-

'The Chiefs of Staff referred to the following considerations
relating to the proposal to substitute an American Division for
the 9th Division A.I.F. in Australia.

(1) Military
(a) The substitution would not mean any diminution in the number
of troops to arrive in Australia by about mid-June, as it is
estimated that the American Division would arrive here as soon as
the 9th Division A.I.F. could be expected.

(b) The substitution would result in a large saving of shipping,
as it would mean one move only, that is, a Division from the
United States of America to Australia, and not two as would be
necessary if the 9th Division were to be brought to Australia, and
another Division taken to the Middle East to replace it.

(c) Acceptance of the proposed substitution would probably
expedite the return to Australia of the two Brigades of the 6th
Division A.I.F. which are now in Ceylon.

(2) Political
The consideration which is mentioned in paragraph 3 of the
cablegram that the presence of considerable United States forces
in the Anzac Area will emphasize to the United States the
importance of protecting the Area by its main sea power, and also
of accelerating the flow of equipment from the United States for
the existing Australian forces.

Taking these factors into account, the Chiefs of Staff recommend
that the proposals should be accepted, notwithstanding that the
American troops would not be so highly trained as the 9th Division
with its war experience.'
3. It is desired that you discuss this matter with the President
as early as possible to ascertain the strength of his feelings on
this request. You will note from the early part of his message to
Churchill that he expresses agreement that the Australian and New
Zealand Divisions now in the Middle East should remain there. This
would indicate that notwithstanding our original decision [5] and
assurances from Churchill [6], the latter has originated something
with the President on this matter. On the other hand Page's
comments on Churchill's cablegram show that Churchill attributed
the origin of this request to the President. [7]

4. The following special observations are furnished in connection
with your discussions with the President:-

(a) In offering two brigade groups of the 6th Division for the
purpose of temporarily adding to the garrison of Ceylon, we stated
that we were relying on the understanding that the 9th Division
will return to Australia under proper escort as soon as possible.

[8]

(b) In the Chiefs of Staff's appreciation communicated to
Washington in cablegram No. 55 [9], it was stated that the minimum
forces required for the defence of the whole of Australia are:-

Army-25 divisions
Air-64 first line squadrons
9 transport squadrons.

(c) In regard to the Army strength, it was stated that the
strength mentioned is the minimum until such time as adequate
naval and air forces are available, and that 10 fully equipped
divisions would have to be supplied by our Allies.

(d) With reference to adequate naval forces, you are aware of the
views of the Australian Chiefs of Staff on the concentration of an
Allied force of sufficient strength to challenge the Japanese
Fleet at any moment.

This would be a general deterrent to a seaborne operation, such as
a large-scale invasion of Australia. In regard to the strength of
the naval forces in the Anzac Area, you will have received my
SW.18 [10] relative to the increase considered necessary.

(e) With reference to adequate air strength, you are aware that we
have 15 first line squadrons, that supplies of aircraft are
required for expansion of the R.A.A.F. and for its maintenance,
and in the meantime an increase in American air strength in this
country is urgently necessary.

(f) Adequate naval and air strength do not therefore exist, and we
have no assurances as to the rate at which they will be provided.

The only promise of increased land strength is one American
Division due to arrive about 10th April, and the conditional
promise of another Division if the 9th Division is allowed to
remain in the Middle East.

(g) The President in his message to Churchill regarding the
division of the World War theatre into the Atlantic, Middle and
Pacific Areas said:-

'There would be a middle area extending from Singapore to the
Mediterranean which would be a British responsibility, it being
understood, however, that Australia and New Zealand would give as
much assistance to this area as their Governments could manage and
the Americans would allocate to it all possible munitions and
merchant ships.'
We have all along based our views on the return of the A.I.F. on
the fundamental consideration that our first responsibility is to
ensure the security of Australia as the main base in the south-
west Pacific. We must be assured of this before we are in a
position to assist elsewhere.

(h) Finally, there is an important psychological aspect relating
to the retention of the 9th Division in the Middle East. As their
comrades have returned to Australia, these troops cannot be
retained abroad [in]definitely without their morale being
affected, particularly as they know that the others returned
because their homeland is threatened. There is also the aspect of
maintenance of this Division by the regular flow of reinforcements
overseas.

5. You should be aware that the New Zealand Government, in regard
to a similar request for the retention of its one Division in the
Middle East, has stated that it requires a minimum of 6 Divisions,
of which it has provided itself with three. As you will have noted
it is being promised one. [11]

CURTIN