CABLEGRAM FROM AUSTRALIAN GOVERNMENT TO GORDON WALKER

Canberra, 13 April 1951

1. SECRET IMMEDIATE

2. We have been giving further consideration to the steps which should be taken next in order to keep up the momentum of the Colombo Plan. In particular we have closely examined the possible ways of allocating our own contribution in the first year among the various South and South-East Asian countries.

3. We are particularly anxious to examine the problem of how best to co-ordinate our own economic aid programmes with those of other Governments, and to consider the amount of total contributions in relation to the requirements of individual countries of the region (recognising that the estimates of external finance requirements as stated in the Colombo Plan report were based on many assumptions and indicated ‘the broad dimensions’ of the problem).

4. We would have preferred that no decision on allocation be made by us until the matter of a U.S.A. contribution was clearer, so that the distribution of our assistance, necessarily small relatively to what we hope from the U.S.A., could be adjusted in terms of the overall contribution and its best allocation. However, if a decision by the U.S.A. is unlikely to be reached until August or September it would in our opinion be impolitic to delay our own actions or decisions: furthermore a firm decision in the near future by Commonwealth donor Governments may well have some beneficial influences on United States Congress attitudes.

5. We suggest, therefore, that informal consultations take place among representatives of United Kingdom, Canadian, New Zealand and Australian Missions at Washington and the U.S.A. Administration early in May. We would make it clear to the United States that we were seeking no more than their advice in accordance with their conception of the role of the Consultative Committee as stated by Kennedy at Colombo. Opportunity might nevertheless arise for some discussion of United States contributions and their own experience in the past in aid programmes to non-Commonwealth countries.

6. In addition to the subjects in paragraph 2 above we wish to discuss:—

(i) A tentative allocation of the Australian Government’s contribution for the first year which we would hope to circulate shortly.

(ii) Nature of bilateral agreements necessary in regard to contributions.

(iii) Proposed allocations by other Governments which were in a position to make even tentative suggestions.

(iv) Assistance being given or proposed, by the International Bank.

(v) Developments since the London report¹ was written e.g. I.B.R.D. loan to Pakistan, proposed U.S.A. gift (or loan) of wheat to India; balance of payment assumptions by Ceylon and others.

1. It will, of course, be desirable to treat as highly confidential fact that these discussions may take place.

2. We should be grateful for your early comments.

3. Please pass copies to Australian High Commissioner.

4. (For Washington). Please do not discuss meeting with United States until so advised.

[NAA: A9879, 2202/E1 part 3]