1. I was surprised and alarmed at your 40, paragraph 4.  While
Article VII might possibly involve some reduction in preferences
your admission that it might involve major adjustments to
Australian industries seems quite contrary to employment approach
set out in basic instructions.  As I informed you  as a
result of our efforts Canadian Mutual Aid Agreement  omits all
references to tariffs and trade barriers. I think you should not
commit us even on official level.
2. Report contained in your 40 makes it clear that while United
Kingdom have accepted the employment agreement  they do not yet
fully appreciate significance of employment approach in relation
to commercial policy. Although discussions on employment and
monetary proposals might seem satisfactory, it would be a bad
mistake to appear satisfied. United Kingdom officials still have
to be persuaded to put a strong case on employment and monetary
proposals to United States officials and commercial policy is
still to be discussed.
3. Please advise when further United Kingdom - United States
discussions will take place. Australia should have a direct
representation not only because of our particular interests but
also because we are authors of one of the main proposals.
4. At present, this represents my personal view only, but under no
circumstances do anything definitive until I can call Cabinet
subcommittee on Economic Collaboration .  I am confident they
will share my anxieties.
5. Perhaps you will send me a personal cable through this same