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Relations between USA and Australia

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"Left wing or communist dominated unions and the extremist . . ? ■

Labor Minister Cameron, and Trade Minister Cairns, have effectively _

taken over Australian foreign policy at this point.

"Even if Mr.. Whitlam or Mr. Hawke can now overcome the union ban

on U.3. shipping, great harm has already been done to Australian/United ,

State relations.

"Mr. Whitlam's impotence should surprise no one. He achieved

peace within the Labor Party by going along with the extremism of the

Victorian Executive, and by indicating to the left wing that he would

comply with their wishes.

"The effect of the Whitlam-Cameron-Cairns union dominated foreign

policy will be to destroy a basic trust between the United States and Australia, and to reduce the value of defence alliances which can -only- — —

remain valid if the relationship between two countries is warm and close.

"In five weeks, Mr. Whitlam has moved Australia’s foreign policy “ from one. concerned with freedom and independence in South East Asia, to one

showing sympathy with North Vietnam, and belligerance to the United States.

"They show plain sympathy with North Vietnam, despite continued

massive troop deployments in South Vietnam. If these policies continue,

their logic could be to lead Australia first to non-alignment, and then

to alignment with the Chinese communist world, as Mr. Cairns-Cameron-

Carmichael and other controllers of Labor policy may well want.

"How warmly the Peking diplomats will be welcomed when they arrive

not long after a period in which Mr. Vfhitlam was apparently unwilling to

receive the United.States Ambassador. .

"It may be that only public objection and repugnance will prevent

this course.

. . . / 2


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