I am directed by the Prime Minister to refer to your letter of
22nd July on the subject of the future constitutional position of
Ceylon. [1] In general, the Australian Government agrees that a
country, before admission to the British Commonwealth, should
undertake certain obligations. Among the questions which have been
considered by the Government are first, whether such obligations
should be stated in contractual form and second, whether,
particularly where the obligations involve the Commonwealth as a
whole, they should be discussed at a Commonwealth meeting rather
than negotiated solely between the Governments of the United
Kingdom and Ceylon.

The Australian Government agrees that the Defence obligations to
be undertaken by the Government of Ceylon should be stated in the
form of an Agreement. While such an Agreement is a matter for
concern to the Dominions, it is appropriate, since the United
Kingdom Government is undertaking full responsibility in the
matter, that this Agreement should be negotiated and signed by the
Governments of the United Kingdom and Ceylon, on completion of the
normal intra-Commonwealth consultation.

In regard to the terms of the Draft Agreement on Defence, it is
noted that it has been cast in general terms and that military
facilities to be granted to the United Kingdom, including the use
of naval and air bases, ports, military establishments and
telecommunications are to be such 'as may from time to time be
agreed'. In the light of the above, it is considered that, as far
as the United Kingdom is concerned, the Agreement is generally in
accord with the strategic requirements of Australia. It is noted
that the question whether the draft Agreement should contain a
time limit or whether it should contain a provision whereby it
could be terminated by either party on giving some period (e.g. 5
years) of notice is still to be considered by the United Kingdom
Government. It appears desirable that the Agreement should remain
in force as long as possible, preferably indefinitely, and that
this might best be achieved by omitting all reference to the time
factor. Further, it is assumed that existing defence arrangements
in Ceylon would remain in force pending the conclusion of a
satisfactory mutual agreement between the United Kingdom and
Ceylon Governments regarding the details of future defence
arrangements.

The obligations which might be undertaken by the Government of
Ceylon in regard to the External Affairs appear different from
those in regard to Defence. [2] Whereas the latter do not involve
any commitments on the part of other Dominions, the very fact of
the admission of Ceylon to the Commonwealth may involve all other
Dominions in obligations. In particular, the Dominions may feel
obliged to keep the Government of Ceylon informed of their
intentions in the field of foreign policy, in accordance with the
normal practices now in use, and they may wish to receive similar
benefits from that country. It is noted that the draft Agreement
on External Affairs as between the United Kingdom and Ceylon makes
no reference to the obligations to be undertaken by Ceylon in
regard to the other Dominions and by the other Dominions in regard
to Ceylon. Further, in the absence of consultation with other
Dominions, the Australian Government is not convinced that such
obligations would most suitably be expressed in contractual form.

At this preliminary stage it appears that an appropriate procedure
might be for the relations of Ceylon with the United Kingdom and
the other Dominions to be discussed at a Commonwealth meeting at
which representatives of the new Ceylon Government would be
present. Such a meeting could conveniently be held in London, the
Dominions being represented by their High Commissioners. The
undertakings mutually agreed could be formulated in the type of
statement usually issued on conclusion of British Commonwealth
meetings.

Should such a procedure be adopted, the points stated in the draft
Agreement on External Affairs would, in general, be those which
the Australian Government would wish to have discussed. As the
Agreement stands at present, its terms do not cover the
undertakings which Dominions such as Australia might expect from
the Government of Ceylon and those which they in turn would wish
to give to the Government of Ceylon. The first five paragraphs
would appear to need redrafting to make them applicable within the
Commonwealth as a whole.

Consideration has also been given to the fact that should such a
procedure be adopted for the admission of Ceylon to the
Commonwealth, it should also be adopted for the admission of other
countries. The case of India and Pakistan is not however an exact
parallel. The Government of India has been in practice regarded as
a member of the Commonwealth, and the Australian Government for
its part has in general included India in its intra-Commonwealth
consultation. It would not therefore expect of India or Pakistan
prior undertakings similar to those which might be asked of Ceylon
or any other country which is entering the Commonwealth for the
first time as a fully self-governing community.