Further to my cables on Eastern Group programmes, with special
reference to India [1], I give hereunder the full message from Mr.

Essington Lewis [2], which you will observe makes special
reference to the United Kingdom Government's delay in authorising
the Indian programme. My first message was in error in alluding to
the failure of India and it needs to be made clear that the delay
lies in London.

We are also perturbed that the schemes recommended by the Mission
for India, which arose largely out of Eastern Group conferences,
have not been started. We regard the allocation of production to
the various Eastern Group countries by the conference as a
partnership obligation, the Australian part of which has been
loyally pushed forward without delay. We regard the delay in
authorising the Indian programme very seriously.

Following is text of Mr. Lewis's message:-

'Mr. Essington Lewis has had talks with Sir Alexander Roger [3],
who is deeply concerned regarding the non-implementation of the
programme for India of armament and explosives production, which
his Mission have recommended for authorisation to His Majesty's
Government, London, arising out of the programme which was settled
in principle at the Eastern Group Conference and which, so far as
Australia was concerned, and we believe the other dominions and
colonies concerned, agreed.

The Mission submitted preliminary reports at the end of December
last and final reports in the early part of March. In the final
reports the Mission were able to suggest heavy reductions in
requirements for skilled men and superintendents and also heavy
reductions in machine tools because they had found a potential
supply in Australia and elsewhere of substantial character.

Sir Alexander, since his arrival in Australia, has also had
assurance from us that Australia would be willing to receive men
from India for training in Australia, and he tells us that the
schemes recommended in India require experience in construction
and erection which Australia has already acquired and which would
be available for India.

Sir Alexander emphasised the extraordinarily favourable position
of India in respect of its unlimited pool of manpower available
both for Defence purposes and for munition making and unless it is
fully employed and the schemes are promptly authorised and
efficiently carried out India will be the weak link in the chain
of Eastern Group countries to the detriment and danger of all
concerned.

He urges that Australia should render all help possible in
impressing the United Kingdom Government that the schemes should
be agreed to and proceeded with on business-like lines and that
Australia will give all possible advisory help out of their [sic]
experience in administration and direction.

He urgently suggests that Mr. Menzies should see Mr. Churchill on
what he regards, and we agree, to be a supremely important matter
affecting the whole of the Eastern Group of countries, especially
in view of the present developments of the war in the Balkans and
Mediterranean.

Sir Alexander is also deeply perturbed at the non-implementation
of the Bren Gun Factory scheme for India but this will form the
subject of another message. [4]

As it is to the interest of Australia as well as of India that the
proposals of the Eastern Group Conference should be pushed on to
completion at the earliest possible moment, the Director-General
of Munitions supports Sir Alexander Roger in the matter, and asks
that a message in these terms should be transmitted to Mr.

Menzies. [5]

Sir Alexander further stated that even though the schemes be
authorised, the Mission is doubtful whether the Department of
Supply in India as at present organised is as strongly equipped as
might be for carrying them out within dates the Mission regards as
practicable and they have made recommendations that the
Organisation should incorporate first class business men in
highest positions. He has even suggested that the United Kingdom
Government should stipulate this as a condition precedent to
authorisation and feels that if the proviso is fulfilled the
schemes can be carried out successfully. As the course he
recommends has been successfully instituted in Australia, he asks
that the Prime Minister might be asked to express his views upon
this aspect of the matter when discussing it with Mr. Churchill.'