Your 310. [1] We have under immediate consideration this and other
telegrams from you on economic warfare measures as affecting Japan
and propose consulting United Kingdom Government on general
policy.

In the meantime the following summary of economic policy adopted
by Australia and at present operating, may be useful to you in
discussion with Japanese:

(1) All strategical materials other than wool, zinc, lead, scrap
iron and steel. Exports to Japan are permitted up to the average
pre-war level of exports.

(2) Cereal foodstuffs. We have sold large quantities to Japan and
generally speaking we have supplied Japan with as much as she has
offered to pay cash for.

(3) Oil bearing foodstuffs such as copra. We have never supplied
Japan with these in quantities now desired, and Japanese demand
comes to us solely for the reason that N.E.I. and United States
have taken steps to reduce substantially supplies to Japan.

Our general policy of limitation to pre-war level, views of United
Kingdom Government and restrictions by N.E.I. and U.S.A.

Governments will largely decide this question, which is still
under consideration.

(4) Wool. Empire's need precludes meeting Japan's full request as
to types. With respect to lead, we are supplying almost twice as
much as average pre-war level and feel we may have to reduce this
to the average pre-war figure. Zinc. Permitted exports are only
slightly lower than average pre-war level. Scrap iron and steel.

You are familiar with the reasons for prohibition as well as our
own war needs.

We will advise you further as soon as review of policy has been
completed.