[matter omitted]

I have cabled a few words on Cripps's speech in the House last
night. I feel myself that the time is coming shortly when some
responsible Minister or Ministers should visit London. The fact is
that decisions are being made concerning the U.K.'s future
relationship with Europe and, indirectly, the British Commonwealth
stage by stage. Nothing very sensational is likely to happen at
any one time in this connection but the present does seem to be a
parting of the ways in which we have got to think out very clearly
where Australia's interests lie. Any clear-cut Australian views
are obviously capable of influencing such a fluid situation. It is
only by top-level Ministerial discussion, even if only in general
terms, that we will be able to obtain any definition of precisely
where the U.K. is heading, because I don't think the country knows
itself However, it is early days for me to give any formed
opinions. I am just unfolding my thoughts as they occur. My
impression was rather reinforced by chatting yesterday afternoon
to the Canadian and South African representatives [1], both of
whom I met during I.T.O. discussions. Since they have been on the
scrounge longer than Jim and I, I hope to get some useful lines
from them later. Both affirmed the interesting character and far-
reaching nature of things now happening in the U.K. I am convinced
that the growing inclination of U.K. towards Western Europe is not
by any means just political and strategic. There seems to be a
growing conviction that the individual economies of Western
Europe, including that of U.K., are on too small a scale to
exploit the full advantages of modern technology. Among the U.K.

officials I have come across so far this rather than any strategic
factor governs their thinking. One satisfactory feature, at least
from our point of view, is that Western Europe will remain a
deficit area for food and raw materials which we should be able to
supply at profitable terms of trade. At present it seems likely
that any integration will take place only slowly and that we shall
have plenty of opportunity to ascertain our interests as each case
arises, but one can never be sure.

[matter omitted]

I have just noticed a report in the Times from Canberra about
Australia's misgivings concerning British ties under Western
Union. [2] It is indeed something which should cause us to think
through our fundamental position in the world. Its implications
are far wider and deeper than Imperial Preference alone. Even if
we are met on Imperial Preference, which seems to me quite likely,
some of the other changes may not be at all welcome. I don't
pretend to know the answers myself, but will give them some
thought in the coming weeks.