Canberra, 24 October 1956
Secret
Trade with Communist China
I spoke to Mr Phillips (Assistant Secretary, Department of Trade) along the lines set out in Mr Tange’s minute of 19th October, in which he said the following:—
‘Please pursue discussions with Trade Department in the light of the Minister’s reactions; the fundamental issues—and probabilities—involved; the half-way house (Hong Kong) suggested as a pragmatic start (and some facility for their people to come to Australia); the Minister’s intention to try to condition the Americans with thinking straight on the subject of trade.
‘The point should be put plainly to Trade that talking blithely about “an Australian Government Trade Commissioner” begs questions which are not diplomatic floss but fundamental in our External relations.’
The Minster’s reaction was that he was opposed at this stage to the appointment of an Australian Government Trade Commissioner in Peking.
2. Mr Phillips asked whether External Affairs would be prepared to join in drafting a submission to Cabinet on this subject. I said that if the Department of Trade went ahead on the lines that I had just set out, we would co-operate in drafting it. If, however, Trade persisted with the idea of appointing a Trade Commissioner in Peking, we would have to make a separate submission to Cabinet.
3. Phillips said that in the light of what I had said, he did not think that Trade would want to proceed at present with the appointment of a Trade Commissioner in Peking. He said he would get in touch with us again later.
[NAA: A1838, 3107/38/1, ii]