Your cablegram 129 [2] has received immediate consideration but
the Government feels some difficulty in arriving at a decision as
to the ultimate destination of the convoy without additional
information regarding the strategical considerations involved in
Italy's possible entry into the war and the repercussions this
step may have in the Balkans, Near East, North-west frontier of
India and Far East.

Before answering your suggestion that the second and third convoys
be diverted to the United Kingdom, the Commonwealth Government
would like an appreciation by your Chiefs of Staff on the likely
possibilities of the prospective situation, the measures required
to counter the probable plans of die enemy and to provide for the
security of our interests, and the zone in which the A.I.F. could
most effectively co-operate. We can then more clearly see our part
in the scheme of things. No doubt this information is readily
available as the possibility of being confronted with an alliance
of this nature has long been referred to in C.I.D. documents.

The Commonwealth Government is gravely concerned at the prospect
of the 6th Division being split into parts located in Palestine
and the United Kingdom. Though this entails administrative
handicaps there is also the possibility of difficulties in re-
concentration from the operational point of view. In our minds the
latter is imperative. Furthermore, such a wide dispersion might
prejudice the fulfilment of the decision as to the theatre in
which the A.I.F. should serve.

Pending the receipt of the appreciation and a decision our view is
that the second convoy should be held at Colombo for a few days
and in view of the urgency of the matter the Chief of the Naval
Staff [3] was asked to forward a signal accordingly to the
Commander of escort and Admiralty.

In the appreciation of the Chiefs of Staff it is desired that they
should traverse the considerations involved in equipping the
Division.

The Australian Chiefs of Staff have also been asked to submit a
similar review as there are important local considerations which
must be brought into the picture.

This cablegram has been repeated to New Zealand.

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