My telegram No. 262. [1] Paragraph 3.

During the past five days possibilities of Australian-American
defence arrangements have been discussed widely.

Press correspondents and radio commentators have played up rumours
of secret defence agreement embracing south-west Pacific and
Singapore and 'involving the possibility of an informal but closer
co-operation of English-speaking parts of the world particularly
with regard to joint use of naval and air bases for mutual
defence'.

Three American journalists recently in Australia also contributed
useful week-end descriptive articles on the strategical
significance to [sic] this part of the south-west Pacific.

Radio comment has, with few exceptions, been favourable. Some
newspapers have withheld editorial comment possibly with Indo-
Chinese developments in view. I consider the absence of hostile
editorial comment except in a few Middle Western papers
significant of a general trend to favourable opinion revealed by
individual writers and commentators, as well as by the strong
support of some papers notably the 'Christian Science Monitor' and
the 'Washington Star' and by sympathetic if guarded attitude of
'New York Times' and 'Baltimore Sun'.

Cumulative evidence of recent [weeks] [2] including Willkie's [3]
public reference to Pacific air bases confirms me in the opinion
that American thought is now moving outwards. American people are
coming to accept the idea of outer fines defence and to appreciate
the relationship of distant bases to home defence. Present
interest and speculation regarding possible defence collaboration
in the south-west Pacific is a logical development out of the West
Indies and Caribbean Agreement [4] which happily was sufficiently
close to be readily intelligible to American people.

I do nevertheless feel that this significant transformation in
American opinion is not yet complete. The process, though hurried
by recent events, might be checked by precipitate action on our
part either in an official taking of the initiative or in seeming
to do so by too vigorous comment in Australian newspapers. I
cannot too strongly emphasise my view of the desirability of
allowing Americans to continue to act on the assumption 'that
American defence policy should be based on American interests'.

CASEY