CONFIDENTIAL

60. If the question of down-grading of non-regional members asserts itself, the Delegation should concert action with other non-regional members, especially the United States, France and the Netherlands. It is important that the attitude of the USSR should be established. Although classed as a non-regional member she claims to be an Asian power. The final decision would, of course, rest with ECOSOC which would have to adopt a resolution amending ECAFE's present Terms of Reference to effect the reduction from full to associate status. If, however, ECAFE recommended this, ECOSOC would almost certainly endorse this and at that stage we should have to accept with good grace rather than dig our heels in.

61.

Associate membership is at present confined to non-self- governing territories, with the exception of Fiji. Although theoretically, Article 4 of the Terms of Reference could become a mandate to provide for associate membership for both the non-self- governing territories in the area and the powers responsible for their international relations, such a formula would not cover existing non-regional members other than the UK. Any amendment to Article 4 which provided for any Member State outside the region to apply for associate membership would presumably run up against the same problem as that created by the Canadian application. Although a change in the status of non-regional members would have only a marginal effect on the assistance given to ECAFE activities, it is important for political reasons to ensure that any move to .down-grade the non-regional members should be acceptable to all regional members and that any such change should be applied to, and agreed by, all five members who are currently regarded as non-regional.

NOTE ON ANGLO-AUSTRALIAN RELATIONS

62. Our relations with Australia are likely to go through a difficult patch following the return to power of the Australian Labour Party after more than 20 years in opposition.

63. Mr Whitlam and his Government are determined that Australia should show a more "independent" face to the world. They are anxious not to seem dependent on old friends such as the US and the UK and wish instead to "rejoin the rest of the world". Thus the new Government has recognised the People's Republic of China and East Germany and plans also to establish diplomatic relations with North Vietnam. At the United Nations, where Australia is now a member of the Security Council, they have voted in favour of resolutions on Rhodesia which we regard as extreme.

64. On the credit side Mr Whitlam has assured Lord Carrington that Australia will continue to support the five-power defence arrangements and that she will continue to provide logistic support and maintain her air and naval contribution after the Australian battalion and battery are withdrawn from Singapore towards the end of the year. And although Mr Whitlam and his colleagues are not keen on SEATO, they do not propose to take Australia out of that Organisation.

/65. Australian

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CONFIDENTIAL

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