GENERAL 1. Australian attitude toward Pacific defense pact -- US Embassy Canberra has been informed by Australian Minister of External Affairs Spender that his government desires to do everything possible to promote a Pacific pact which would include military commitments. In Spender’s view, however, no Pacific nation or group of nations can be expected to embark on a course which without US backing might prove “futile and even disastrous.” Spender believes that discussions at the forthcoming Baguio Conference (called by the Philippine Government) will be futile, because of the lack of support by Asian countries themselves and the absence of support from the US. EUROPE 2. GERMANY: Reform of German interzonal trade set-up urged -- The Berlin branch of the US High Commission in Germany believes that “the time has come for the Bonn Government to clean house” and remedy the unsatisfactory situation regarding German interzonal trade. The Berlin bra...
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