743.13/7–2750
Memorandum by the Assistant Secretary of State for European Affairs (Perkins) to the Secretary of State
Subject: Appointment for Prime Minister Menzies of Australia, July 28, 1950.
Discussion
Prime Minister Menzies of Australia has an appointment to see you on July 281 and presumably will introduce at that time a number of subjects he wishes to discuss with officials of this Government.
Recommendations
(1) That you encourage Mr. Menzies to state what problems or points of common interest he wishes to discuss during his visit.
(2) That you offer to arrange appointments for him to discuss these various subjects in more detail with appropriate officers of the Department and other agencies.
(3) That in any general discussion of the following topics which the Prime Minister may introduce you take the line indicated:
Pacific Pact: Mr. Menzies might be told that this government has an open mind on the subject. We have not as yet, however, seen how the many problems involved, particularly those relating to membership and purposes of a Pacific Pact, can be satisfactorily solved. The views of Mr. Menzies, therefore, would be most welcome to us.2
Korea: Australia has just announced its intention to supply ground troops to Korea. Mr. Menzies should be told that we appreciate this further Australian contribution.3
Australian offer of base facilities on Manus Island: We have learned informally and unofficially the Joint Chiefs of Staff have determined that, in view of the events in Korea, the United States would not be prepared at this time to accept the Australian offer. In the event of a spread of hostilities we would be interested in considering joint operation of the base facilities.4
. . . . . . . . . . . . . .
Netherlands New Guinea: Mr. Menzies may cite the Indonesian policy of neutrality in the Korean war as a justification of Australia’s contention that its vital security interests are involved in the future disposition of Netherlands New Guinea and that Australia cannot acquiesce in the extension of Indonesian control over the territory. In reply to any remarks by Mr. Menzies on the subject, you might say [Page 203] that our representations to Australia of a few months ago expressing concern at the manner in which Australian interests were being asserted was prompted by our belief the two parties, Netherlands and Indonesia, should be permitted to continue their efforts to reach agreement between themselves as provided at the Hague Round Table Conference. We continue to feel that this is the best procedure to be followed.5
Japanese Peace Treaty: We would be happy to have the benefit of Mr. Menzies’ views. I understand from FE that you are fully briefed on the subject of the Treaty.
Australian immigration program: Australia may wish to obtain financial assistance in some form for an expanded immigration program. We should express our willingness to discuss the Australian immigration program if Mr. Menzies raises the matter. We are very much interested in the resettlement of European peoples and the relation of this project to the Australian plans but are unable to determine in what manner we can be of assistance until we know more about the Australian plans.6
Australian Economic Development, dollar financing: There have been indications that Mr. Menzies intends to explore the possibility of obtaining dollar financing in the United States for certain Australian development projects. If it appears that he has the International Bank for Reconstruction and Development in mind as the prospective source of dollars, it need only be indicated that this would meet with the entire approval of this Government. If he is thinking of applying to the Export-Import Bank, or if he seeks an indication as to which bank would be preferable from the point of view of the U.S., it should be explained to him that it is the usual policy of this Government to refer members of the IBRD to that institution for dollar accommodation in the first instance rather than to the Export-Import Bank.
Commonwealth Plan aid South and Southeast Asia: We welcome the initiative taken by the Commonwealth as a result of the Colombo and Sydney Conference and are willing to discuss with Mr. Menzies our own plans for the area.7
Wool Organization: Australia wants an International Wool Agreement which would maintain a reserve or floor price system on raw wool sales in order to stabilize prices. We should tell the Prime Minister, if he raises the matter, that the present situation in Korea would prevent the United States from considering such an agreement at this time.
[Page 204]Friendship Commerce and Economic Development Treaty: We should take the line that such a treaty would provide a more healthful climate for American investment and that we hope technical discussions on a treaty can begin at an early date.8
- Secretary Acheson joined President Truman in receiving Prime Minister Menzies at the White House on July 28; for the memorandum of that conversation, see infra. For the Secretary’s memorandum of his conversation with Menzies on July 31, see p. 205.↩
- For documentation on a possible “Pacific Pact”, see pp. 1 ff.↩
- For documentation on Korea, see volume vii.↩
- Regarding the Australian offer under reference here and the American response thereto, see telegram 24, August 14, to Canberra, p. 211.↩
- For papers on the attitude of Australia toward Indonesia and the question of Netherlands New Guinea, see pp. 964 ff.↩
- Five pages of the unprinted portion of the Background Memoranda Prepared by the Department of State (supra) was devoted to a review of the Australian immigration program. According to that memorandum, Australia had embarked upon a large scale European immigration program aimed at increasing the population of the Country and by so doing furthering Australian security interests and developing the national resources. In 1949 approximately 160,000 immigrants had entered Australia. The plan for 1950 called for 200,000 new settlers, of whom 100,000 would come from the United Kingdom and 50,000 would be displaced persons from Europe.↩
- For documentation on the Commonwealth Foreign Ministers meeting at Colombo, Ceylon, January 9–14, 1950, and the Commonwealth Conference on economic aid for Southeast Asia held at Sydney, Australia, May 15–19, 1950, see pp. 1 ff.↩
- Regarding the proposed treaty of friendship, commerce and navigation under reference here, see footnote 8 to the Department of State Policy Statement on Australia, April 21, p. 194.↩