AGENDUM No. 217/1940 [1]-EASTERN GROUP CONFERENCE-AUSTRALIAN
POLICY
War Cabinet noted that the object of the Eastern Group Conference,
which has been convened by the Government of India with the
consent of the United Kingdom Government, was to determine a joint
war supply policy for the Eastern Group of Empire countries under
which maximum use could be made of the existing and potential
capacity for war supply of each of the participating countries,
and that the Australian Delegation had sought the advice of the
Defence Committee and the decision of the War Cabinet as to
whether the policy for the Australian Delegation should be based
on:-

(a) Complete interdependence with specialisation by each member of
the Group and a Central coordinating member;

(b) The same as (a), but in two or more groups, e.g., Indian and
Pacific; or
(c) The opposite policy of self-sufficiency for Australia as far
as may be practicable, with defined assistance to and from other
members; or
(d) Some compromise which would provide also for the Netherlands
East Indies and other countries or colonies associated with the
strategic problem.

War Cabinet affirmed that the authorised basis of Empire and
Australian munitions policy is as laid down in the Prime
Minister's speech of 24th August, 1937 [2], on the Commonwealth
Government's Defence Policy in the light of the Imperial
Conference, 1937 when the principles of Imperial Defence with
reference to munitions supply generally were raised by the United
Kingdom and Australian Delegations, and the question of planning
for an emergency, with particular reference to the Eastern
hemisphere, was submitted by the Australian Delegation. The
resolution of the Imperial Conference in relation to co-operation
in the production and supply of munitions provides that, with
regard to manufacturing facilities, Governments should aim, in the
first instance, at becoming self-supporting as far as possible.

War Cabinet endorsed the view expressed by the Defence Committee
that, in the light of the principle of Imperial Defence that each
part of the Empire is responsible for its own local defence,
Australia's primary obligation is to provide for this, and its
assistance to other parts of the Empire or Allies is conditioned
by the dimensions and fulfilment of its own effort. It was also
agreed that the Delegation should be instructed as under, in
accordance with the recommendation of the Defence Committee:-

(i) The Delegation should base its attitude on the above
principles but may be authorised to negotiate arrangements
regarding the allocation of productive capacity for munitions and
associated products, and for the supply of foodstuffs and raw
materials after provision has been made for essential local
requirements.

(ii) Conversely, it may make similar arrangements in regard to
Australian requirements from other countries:-

(a) the supply of which is not contrary to the basic principle of
Australian self-sufficiency;

(b) the quantity of which, in the case of munitions, is within the
approved programme.

(iii) The question of supplies to the Netherlands East Indies and
associated non-Empire countries and colonies is to be a matter for
recommendation to the Government after relation of these needs to
the priority of other Empire demands.