167. Telegram From the Embassy in Australia to the Department of State1

135. Department pass Defense. Prime Minister Menzies yesterday briefed me on Sandys’ talks. Stated talks with Sandys would have no effect on matters discussed by McBride mission in Washington.

Apparently London had misunderstood Menzies announcement early April2 to mean all defense equipment to be standardized with that of US. Menzies explained in London only three major items involved: C–130 aircraft, 105 mm gun, and FN rifle (this item not clear). British fully understood Australian position consequently nothing to discuss with Sandys about equipment. (Menzies made no reference to fighter aircraft.)

Future use of Singapore loomed large in Sandys’ discussion. Now agreed British Navy will continue use Singapore as Far Eastern base. Australians also argued strongly for continuation operation Singapore dockyard, stating should this facility be shut down consequent unemployment would create great pol difficulties Singapore. Sandys impressed by this argument, agreed take up matter with Cabinet. Aircraft strength Singapore would remain approximately unchanged and continues based on Singapore with Butterworth3 as alternate. Australian air strength Malaya to be increased up to three squadrons.

Menzies spoke at considerable length regarding ANZAM which he said now “resuscitated” in consequence Sandys’ visit. Parties to [Page 375] ANZAM are Australia, New Zealand and UK. He strongly emphasized this primarily military planning organization with no formal terms of reference. Said ANZAM will not detract from SEATO which confirmed in communiqué as “prime instrument for defense” SEA. Menzies thought that when SEATO has reached point where all parties can take part in intimate high-level planning, ANZAM would contribute its accomplishments and thus actually strengthen SEATO. (Lord Carrington,4 with whom I had conversation today, stated ANZAM has periodically met in Melbourne since inception. Said Sandys’ talks have merely confirmed its usefulness as military planning body.)

Menzies discussed problem raised by Malayan independence which creates ambiguity regarding right maintain Australian Forces there. Stated although Australia traditionally has been unable station troops overseas during peace time, Malaya expedient had now established principle of doing so and Menzies hopes continue this over period of years thus firmly establishing principle and simultaneously creating framework strategic reserve for SEATO.

Menzies thought Sandys’ statement regarding nuclear weapons indiscreet and may cause considerable difficulty with Rahman. Hoped bring Malaya into SEATO during course next year or so but thought this may now be extremely difficult.

Memo of conversation airpouched Department, London and Kuala Lumpur.5

Carrington stated UK ground forces level in FE would not be finalized until Sandys’ return to London.

Sebald
  1. Source: Department of State, Central Files, 743.56/8–3057. Secret; Limited Distribution. Repeated to London and Wellington.
  2. On April 4, Menzies informed the House of Representatives of the government’s intention to adopt certain U.S. military equipment.
  3. On the Malay Peninsula, facing Penang.
  4. British High Commissioner in Australia.
  5. Not found in Department of State files.