Extract [LONDON, 22(?) May 1944] 
In regard to the British effort in the Pacific, Grigg said that
all the Chiefs of Staff favoured a decision basing the U.K. Forces
on Australia. Grigg also favoured it. He said that the U.K. Govt.
had been so busy selling out the administration of India to the
Indians, it would be impossible to base large forces on India.
They could not handle the problems involved.
Mr Churchill though pressed to reach a decision had not done so &
all planning was, in consequence, held up.
It might be that Overlord  was such an anxiety that he could
not reach a clear judgment in the matter. Also the South East Asia
command & Mountbatten's appointment had been his particular fancy.
There was no doubt that he was anxious to make a show in this
area, and was reluctant to face the fact that it might have to be
by-passed in the general Pacific strategy. U.K. opinion was
disturbed at the thought of receiving back Burma & Malaya as a
result of action by the U.S. Forces. Finally there was no doubt
that the action by the Australian Govt. in refusing to divert the
A.I.F. to Burma still rankles with Mr Churchill. I pointed out to
Sir James Grigg what would have happened to the East coast of
Australia, if the A.I.F. had not returned & he quite agreed with
our decision & the views submitted by me.