I have to inform you that the proposals put forward by your
Government in cablegrams Z311 and Z312 dated October 19th and 20th
[1] have received the consideration of the Commonwealth
Government.

2. The Commonwealth Government is in agreement with the interim
measures proposed to be put into force throughout the Empire in
order to prevent Japan from accumulating stocks of strategic raw
materials. This agreement is based on the assumption that all
other Governments of the British Commonwealth also agree in
principle to the application of the proposed measures and that the
control exercised by other British countries and their supply of
commodities in which Australia has hitherto had an export trade
with Japan conforms to the general plan outlined in the cables
under consideration.

3. The Commonwealth Government is prepared to collaborate with the
Governments of the United Kingdom, the other Dominions, Allied
Powers and the United States in the development of a future
economic policy towards Japan. It is considered of the utmost
importance that the United States should at once adopt measures
identical with the interim measures proposed.

4. The Commonwealth Government has the necessary export control
machinery in operation and is ready to put the interim programme
into force immediately your Government advises that they are
satisfied that the conditions mentioned will be met.

5. The basis for the interim restrictions which the Commonwealth
will put into operation will be discussed with you at an early
date.

6. An endeavour will also be made to influence producers not to
make contracts for the supply of the specified raw materials to
Japan without prior consultation with the Commonwealth Government.

7. In conformity with the suggestion made by your Government,
export control measures will also be applied to Manchuria and
China in order to prevent leakage to Japan.

8. Steps will be taken to impose an export prohibition subject to
licence on scrap iron and steel.

9. I should be glad if you would communicate the terms of this
letter to His Majesty's Government in the United Kingdom.

R. G. MENZIES