While in London, I have had discussions with Mr. Churchill and his
advisers about the Australian war effort, with particular
reference to the demands likely to be made on Australia when
United Kingdom Forces come into the war against Japan in strength,
following the defeat of Germany.

2. For some months the Australian Government has been seeking to
re-balance the Australian war effort in order to remove certain
stresses and strains which have arisen from the extensive call-up
of manpower after the outbreak of war with Japan, when the A.I.F.

was still in the Middle East. The return of the A.I.F. and the
arrival of United States Forces gave rise to extensive demands for
food and other requirements and a re-adjustment of manpower has
been necessary to provide for these needs and to sustain the level
of activity in a number of basic industries on which the
Australian direct military effort ultimately depends. This process
is not yet complete, but in conjunction with it, it will also be
necessary to provide for the contribution which Australia might be
able to make towards the supply and maintenance of United Kingdom
Forces which may be based on Australia in the future.

3. While I have been seeking information as to the broad basis
which should govern the Policy of the Australian Government in
this direction, I have emphasized that the Government and people
of Australia are anxious that the strength of the fighting forces
shall not be permitted to fall below a certain minimum point. Mr.

Churchill and I have reached agreement [1] on these strengths and
the level at which food production should be maintained for
exports to Britain. As Australia is in a sphere of American
strategic responsibility, Mr. Churchill also agreed that I should
discuss the matter in Washington.

4. Had circumstances permitted, I would naturally have discussed
this matter with you first. As this was not possible, I went ahead
with my discussions with the Combined Chiefs of Staff and I am
glad to say that, thanks to their cordial co-operation and their
understanding of our position, a satisfactory conclusion has been
reached.

5. I enclose for your information copies of.-
(i) The Memorandum submitted to the Combined Chiefs of Staff [2]

(ii) Their reply. [3]

JOHN CURTIN