CABLEGRAM FROM DEPARTMENT OF EXTERNAL AFFAIRS TO CRITCHLEY

Canberra, 10 February 1951

1. SECRET IMMEDIATE

For Critchley.

1. Plane on which Gray¹ is to travel has been delayed and he will probably not arrive until Tuesday or Wednesday. Gray is carrying brief, the main points of which are as follows:

2. (a) Pre-conference discussion should be held by the Delegation with representatives of other Commonwealth donor countries to determine manner in which statement on contributions is to be presented and to consider way on² which contributions might be available to recipient or prospective recipient countries.

(b) Should our contribution £25m. sterling be questioned by the United Kingdom in private discussions the Delegation is to point out that—

(i) this represents a completely new obligation on the part of Australian Government:

(ii) United States officials have already commented favourably on it;

(iii) the contribution is for both non-Commonwealth and Commonwealth Asian countries;

(iv) the United Kingdom have not yet indicated whether they will give anything for South East Asia apart from their own territories:

(v) the main United Kingdom contribution is a liquidation of debts which they would have had to meet in any case—plan or no plan;

(vi) we think that a reasonable contribution by the United Kingdom to the non-Commonwealth Asian countries would be proper and consistent with the spirit of the Plan.

1. The Agenda itself: we have no further items to add.

(i) Chairman. Delegation may use its discretion.

(ii) Review of development etc: If a statement is made by each country the Delegation is to make the following points:—

(a) Australian Government’s contribution will be £31 ¼ million Australian;

(b) It will be available to assist both Commonwealth and non-Commonwealth countries of the region;

(c) The Australian Government has large and increasing demands on its financial resources and has already contributed very substantially to many relief and rehabilitation programmes e.g. Korea, Palestine Children, U.N.I.C.E.F.;

(d) The size of the contribution will, however, be kept under review;

(e) The form and distribution of the contribution will be determined by the Government in light of recommendations arising from the meeting and of subsequent discussions at Ministerial Conference of Consultative Committee.

(iii) Non-Commonwealth Governments in this area. Delegation should make an appropriate statement and do all it can in private discussions particularly in regard to Indonesia, to encourage them to join.

(iv) International Bank. Australian Government wishes that close liaison be maintained. A representative could be invited to attend appropriate sessions of the Consultative Committee and to participate where necessary in any centralised or decentralised co-ordinating machinery established for making assistance available;

(v) Non-Commonwealth Governments outside area. Government’s views are in telegram 55³ which the Delegation has already received and should be canvassed cautiously in private discussions if an opportunity present[s]⁴ itself and the atmosphere be not unfavourable. If matter is likely to be discussed in full session prior to arrival of brief, please telegraph for instructions.

(vi) Future organisations.

(a) In our view the form of consultation and of administrative machinery will be determined mainly by the size and scope of the Plan, the amount of assistance which will be granted and the way contributions are made available.

(b) It is premature at this stage to define to[o] precisely the type of administrative machinery required or the standard and qualifications of staff.

(c) Subject to (a) above, we envisage both a Council of Technical and Economic Co-operation, respectively, subordinate to the Consultative Committee. It is suggested that in the meantime both Councils be served by one small Secretariat. The organisation should be left flexible enough to enable appointment if necessary, of top-ranking economist who might also be Director of the Bureau of Technical Co-operation which could enlarge functions and name.

(d) We think that the best way of securing co-ordination of assistance etc., is through machinery in each country receiving assistance e.g. in form of a committee representing donor countries, the I.R.B.D. etc. This committee could work closely with the Government authorities concerned with the country’s development programme. Periodic reports would be made by it to the Council which would prepare a report on the whole region for the Consultative Committee.

(e) The Secretariat should be located at Colombo though if all South East Asian countries come in, consideration should be given to Bangkok.

(f) Scientific liaison. We are not in favour of appointment of Scientific Liaison Officer or of the Conference of Scientists as suggested by the United Kingdom.

1. Above should provide Delegation with enough material to cover main points until brief arrives.

Please cable immediately Gray arrives.

[NAA: A1838, 851/18/8 part 3]