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4. AT THE SAME TIME, THE AUSTRALIAN ASSESSMENT THAT THE RISK HAS RELATIVELY SLIGHT THAT THIRD COUNTRIES WOULD GANG UP TO BLOCK ANY

ANGLO-AUSTRALIAN AGREEMENT SEEMS TO HAVE BEEN GIVEN CREDENCE BY DEVELOPMENTS SUCH AS THOSE REPORTED IN PARAGRAPHS 5 AND 6 OF MY TELNO 385 (SOME OF WHICH HAVE SINCE BECOME PUBLIC KNOWLEDGE) AND BANGKOK TELEGRAM NO ALLOT 6. AGAINST THIS BACKGROUND I HOPE THAT WE MAY FEEL ABLE TO ADOPT A MORE ROBUST ATTITUDE IN PROMOTING

AN AGREEMENT ON THE LINES AUSTRALIANS PROPOSE. THE AUSTRALIANS BELIEVE, EVIDENTLY WITH SOME REASON, THAT ANY SIGN OF LACK

OF SOLIDARITY BETWEEN US IS MORE LIKELY TO ENCOURAGE OPPOSITION FROM OTHERS THAN THE REVERSE. IN PARAGRAPH 4 OF MY TELEGRAM NO 319 |

ATTEMPTED TO SET OUT THE ADVANTAGES TO ANGLO-AUSTRALIAN

RELATIONS OF A POSITIVE RESPONSE: SINCE THEN THERE HAS BEEN NO SIGNIFICANT IMPROVEMENT IN AUSTRALIAN/EUROPEAN RELATIONS AND

THE CREDIT WE GAINED FOR OUR HELPFUL ROLE IN EEC DISCUSSIONS COULD

WELL BE WEARING RATHER THIN, PARTICULARLY IN THE LIGHT OF OUR SHARP

DISAGREEMENT OVER SELECTIVE SAFEGUARDS IN THE MTNS. THE FAILURE

TO SIGN THE NUCLEAR SAFEGUARDS AGREEMENT, THROUGH NO FAULT OF OURS,

DENIED US A SUCCESS, A FORTHCOMING APPROACH TO THE AIR SERVICES

ISSUE IS A MATTER WHICH LIES IN OUR OWN HANDS AND IS AN OPPORTUNITY

TO RESTORE CREDIT WHICH I HOPE WE SHALL NOT MISS.

FCO PLEASE PASS SAVING TO WASHINGTON, MANILA, DELHI, BAHRAIN, PARIS, BONN, ROME, THE HAGUE, VIENNA, BELGRADE, JOHANNESBURG, ATHENS, OTTAWA.

DUDGEON

[REPEATED AS REQUESTED]

[COPIES SENT TO CAD/DOT]

FILES

MAED

S AM D

SWPD

SEAD

HK & GD WED SED

N AM D

LEGAL ADVISERS

MR BUTLER

MISS BROWN

MR MURRAY

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