The despatch of reinforcements in personnel and equipment to the various theatres outside the United Kingdom has been given active consideration here. During the first eight months of the war, the greater part of the Army's effort was devoted to building up the British Expeditionary Force in France, and since the evacuation from Dunkirk it has been necessary to allot most of the current armaments production to home defence. In consequence, the forces overseas have received very little reinforcing of men or of material since the outbreak of the war. The present position is that the French collapse has greatly increased the scale of the attack in the Middle East, and our interests in the Far East are also threatened by Japanese hostility. If the British Empire is to retain its position in these areas, substantial reinforcements of men and equipment must be despatched. The bulk of the equipment must be obtained from the United Kingdom.

We have still much to do before all requirements for the defence of the United Kingdom have been met, but the equipment of our forces here and the strength and organisation of our defences have already made considerable progress. Furthermore, as winter approaches, the practicability of an invasion will decrease because of weather conditions. It has therefore been decided to allocate from now onwards a considerably larger proportion of United Kingdom resources in men, and approximately 50 per cent of future production of equipment, to reinforcements for other theatres and to the provision of equipment for their garrisons and reserves. The corresponding slowing up in the completion of the defence arrangements of the United Kingdom will be accepted.

The Middle East is the theatre in which reinforcements are most urgently required, since there are indications that a large-scale offensive by the Italians will be launched when the weather is favourable for campaigning in this area (September to April). The urgent requirement is for additional armoured fighting vehicles and artillery (including anti-aircraft artillery). One army tank battalion, one cruiser tank regiment, and one light tank regiment have already been despatched by fast convoy, and a further convoy carrying artillery reinforcements will sail shortly. One division is being sent from India. The despatch of the balance of the 6th Australian and New Zealand Divisions from the United Kingdom to the Middle East will be arranged as soon as practicable.

Urgent steps are also being taken to provide the equipment required (including the equipment for the reinforcement of the Special Service units) in all items essential to enable them to fight, and to provide the necessary reserves of weapons and equipment. Although equipment will not be issued exclusively to each theatre in turn, military priority will be given to the Middle East. To meet the most urgent requirements in this theatre, 48 anti-tank guns, 20 Bofors anti-aircraft guns, 48 25-pounder guns, 500 Bren guns, 250 antitank rifles, with ammunition for all the above, 1,000,000 rounds of tracer small-arms ammunition, and 50,000 anti-tank mines have been recently despatched and a further large consignment will leave shortly. In addition, a separate allotment of weapons and equipment is being sent shortly to East Africa.

It has been proposed that the forces in Malaya should shortly be reinforced by one Australian division, and the defence of Fiji increased by a brigade group from New Zealand.

8th New Zealand Brigade Group.

Additional African infantry brigade groups are being raised in East Africa and West Africa for employment in these theatres. The detailed composition of the garrisons which will eventually be required is under consideration. Certain additional anti-aircraft batteries are required to reinforce the (Aden?) land garrison, and will be provided, together with thirty days' reserves, as soon as possible. In India the British garrison has been depleted by eight battalions since the outbreak of war. Replacements for these battalions will have to be sent from the United Kingdom as soon as they can be spared.

As far as the Air Force is concerned, the immediate essential requirement is not to despatch squadrons from the United Kingdom but to re-equip the existing squadrons overseas with first-class aircraft. This re-equipment will later be supplemented by the reinforcement of first-line strength squadrons. In the Middle East the first objective is to provide bomber aircraft capable of attacking Benghazi, the only effective base for operations against Egypt, and modern fighters to defend the Fleet base at Alexandria. Eighty-four Blenheim aircraft, which will re-equip five existing squadrons in the Middle East by the end of September, are being despatched. Wellington aircraft to equip one squadron and Hurricane aircraft to re-equip three squadrons will be sent out during the same period. In addition, commencing at the end of September, thirty-six long-range Blenheims and eighteen Hurricanes per month will be provided to replace wastage overseas generally. It is hoped also to provide two fighter squadrons and two general reconnaissance squadrons for Malaya by the end of 1940, but this must depend on the development of the situation in the United Kingdom and in the Middle East.

The above proposals also involve heavy shipping and naval escort problems, and these are receiving urgent consideration.

With reference to the telegrams of 3 and 12 August from the Governor-General of New Zealand.

See Third Echelon (Nos. 224 and 230).

During the autumn, an Italian attack on Egypt from Libya is likely, and we are taking all possible steps to deal with such a contingency. Certain information as to these steps was contained in my telegram (No. 88), and further information will shortly be sent. Although there is a possibility that German forces might co-operate from Libya or initiate an attack from Syria, it is unlikely that either of these threats could materialise without considerable preparation by the Germans, and of this no definite indication has yet been received. In particular, an advance from Syria would take a considerable time to prepare and long warning of such preparation should be available.

The New Zealand Government is disturbed by information received as to the present deficiencies of the New Zealand brigade group now moving into an operational theatre in the Western Desert—see the telegram from the Secretary of State for Dominion Affairs to the High Commissioner for the United Kingdom in Wellington, dated 7 September (No. 89). It would appear that the brigade group probably has 18 2-inch mortars instead of 36, 23 anti-tank rifles instead of 95, 182 light machine guns instead of 215, 19 machine guns instead of 36, 6 light tanks instead of 28, 21 Bren carriers instead of 30, no 25-pounders instead of 24.

I should be glad, (1) if you could ascertain, or else instruct Puttick to inform me, what actual supplies of equipment have been issued to the New Zealand brigade; (2) whether it is sufficient for the task allotted; and (3) if possible, how soon are the deficiencies likely to be made good. Your personal opinion on the equipment position would be appreciated.

Your telegram of 10 September (No. 90). I can appreciate how anxious you must be about the lack of equipment in Egypt. The delay in answering your telegram is due to being near Dover in bivouac waiting hopefully for a German landing. I have not yet seen the Secretary of State's telegram of 7 September (No. 89); when I do I will communicate with Puttick and will then send you the answers to your three questions, but it will take some days. Meanwhile I am in constant touch with Cairo. For your information, I forward a cable received from Puttick, dated 31 August:

The move of the New Zealand forces to the Western Desert commenced on the 28th and will be completed by the 6th, less the Anti-Tank Battery and the signal class.

The Signal School, which had been left at Maadi, rejoined 2nd New Zealand Divisional Signals on 16 Sep.

When I received the above cable, and knowing the position when I left, I considered the equipment of the First Echelon sufficient for the role assigned to it. Your cabled figures do not appear correct but Puttick's reply will give me the correct figure. Even so, it should be remembered that normal brigade groups have no cavalry regiment and only a machine-gun company of twelve instead of nineteen Vickers guns. It is true that the force is weak in anti-tank rifles and lacks new 25-pounders, but it has 18-pounders—a good gun—and besides other arms has a large number of Brens. I consider that the First Echelon when kept together as a formation is a formidable fighting force quite adequate for the task allotted it.

As you know, the equipment situation for the past year has been very bad and has been accentuated by French losses. Production here is much improved, but the quantity required to make the defences of the United Kingdom secure has been enormous. Excellent progress has been made but at the expense of the Middle East. The danger of attempted invasion is nearly over. By the end of October, unless the German bombing of factories interferes seriously with production, we shall be past the danger point. After the end of September all interest will centre in the Middle East. The equipment [position] there is not good but, thanks to most firm representations to the highest authority here, a new policy has been agreed to and in the immediate future the Middle East is to get 50 per cent of the production of our factories. Enormous shipments were made last month; some have now arrived and will continue to arrive for some months. These include aeroplanes, tanks, guns, ammunition, &c. With regard to the New Zealand Expeditionary Force's equipment, the Second Echelon will be complete in every detail before embarkation except for twelve antitank 2-pounders and minor details of Royal Engineers field company equipment. The balance of the equipment for the First Echelon, including its full complement of 25-pounders and all vehicles, is now on the water. Training equipment for the Third Echelon upon a basis of 50 per cent issues has been shipped and should be available upon their arrival. I believe that from now on the Middle East equipment position will continue to improve, and by the end of November the New Zealand Expeditionary Force should be able to take the field as a division.

Undoubtedly this autumn has been most difficult here. We should have been relieved of our operational role tomorrow and completed mobilisation pending embarkation. Three days ago these orders were cancelled and we are to stay out here covering Dover until the end of the month or when the present good weather breaks. Immediately War Office liberates me I fly to Egypt by the quickest route. Meanwhile the position in England is excellent, everybody, especially the women population of London, showing great spirit. I can assure His Majesty's Government in New Zealand that our men are well trained, fit, and in great heart, and that the equipment position is adequate. I am confident that our men will play their part if called upon to defend either Great Britain or Egypt.

The following is for Brigadier Puttick:

The New Zealand Government is disturbed by information received from the Dominions Office as to your present equipment deficiencies and operational role. The Minister of Defence reports that your brigade group probably has 18 2-inch mortars instead of 36, 23 anti-tank rifles instead of 95, 182 Brens instead of 215, 19 Vickers instead of 36, 6 light tanks instead of 28, 21 Bren carriers instead of 30, nil 25-pounders instead of 24. To enable me to assure the Government will you as soon as possible send me answers to the following questions: (1) Is the main New Zealand force together or is it split up into two groups, one under you and the other under Inglis? (2) Are our main forces cast in a role to defend Lines of Communication or are they with the Desert Army? (3) When are you likely to get the balance of your equipment?

On 10 September Puttick reported as follows:

All well. I am perfectly satisfied with the conditions under which the force is employed. It has now been decided to form an extensive defensive position at Maaten Baggush.

In answer to my telegram (No. 92) sent after receiving your message of 10 September (No. 90), Puttick reported on 17 September:

I consider the equipment situation very satisfactory and better than that of many Regular units here. Vickers, Bren, and anti-tank rifles are complete for fighting units, and the remainder almost complete. Each battalion has seven carriers out of ten, balance in a week only; also 25 per cent 2-inch mortars. The Divisional Cavalry have nine light tanks and eight carriers, with eleven carriers shortly, but no .5-inch machine guns. The Artillery have eighteen 18-pounders, plus eight howitzers. Twenty-five-pounders are due shortly. Answering your three questions: (1) The New Zealand Expeditionary Force is concentrated and under my command. (2) It is holding a sector of the defence of the Maaten Baggush area with, and under the command of, the 4th Indian Division. (3) The remainder of the equipment, except for 25-pounders and light tanks, will be available in ten days from the 17th.

For the information of the Minister, Maaten Baggush is 29 miles in the rear of Mersa Matruh, our foremost defences, and approximately 140 miles from Sollum.

Realising that the Third Echelon is arriving in Egypt in about two weeks untrained and only partially equipped, I send for your information the latest appreciation from General Wavell of the situation in Egypt, dated 12 September: