[Page 31]
[Printed letterhead]
AUSTRALIAN INTELLIGENCE CORPS
NEW SOUTH WALES DISTRICT
Secret
(3) Sydney...............190
O.C., A.I.C.
The following are the results of my inquiries into the matter referred to in the Minute (1) of the C.G.S. (S.60) of date 30.1.09:-
(1) On receipt of your minute (2) of 12.2.09 I placed myself in communication with the Sydney Morning Herald management and was introduced by Mr.J.O.Fairfax to the chief of staff of that newspaper, Mr. E. Theatstone, who was aware of the identity of person who provided the information appearing in the Melbourne Argus referred to in you minute,
Mr. Theatstone informed me that he had little doubt that that informant would be perfectly willing to disclose his identity in confidence to the military authorities, and he agreed to communicate with him for me.
(2) I also endeavoured to get into touch with Mr. Lucas, the Island Manager for Burns Philp and Co., but found that he was absent from Sydney on a few months' leave of absence on account of his health.
(3) I later received through Mr. Theatstone a letter from the gentleman who was the anonymous source of the information contained in the Argus report, who proved to be the same Mr. Lucas of Burns Philp and Co. This letter was written by Mr. Lucas whilst he was travelling inland, and I have not as yet had opportunity of a personal interview with him.
(4) Mr. Lucas' letter gives some detailed information which he says "may be relied on as accurate", in reference to the situation at Simpsonshafen. (Letter appended hereto) The opinion held by Mr. Lucas may be summed up in the following paragraph from p.3 of his letter:- "In short Simpsonshafen is not a naval base nor is it fortified, nor is it a coaling depot in a large scale YET. But the preliminary work that takes time, the making of roads to the hills, the building of a huge jetty, the reserving of convenient spots for coalstacks &c, is all carried out". He then proceeds to argue that the hills could be fortified and the entrance mined "in a few hours" without our having any knowledge of it.
(5) Mr. Lucas further states that he sent to the C.G.S. over three years ago, a full report with plans showing the land reserved at Simpsonshafen for docks workshops &c.
(6) In the absence of Mr. Lucas from his place in the office of Burns Philp and Co, I had a confidential interview with Mr. Wallin who was in temporary charge of Mr. Lucas' department. From him I obtained the following items of information:-
The only direct connection which Burn Philp and Co. now have with New Britain is through the firm of E. Forsyth [Forsayth] & Co. Mr. Forsyth senr. is dead. His representatives carry on the firm, viz. his wife (remarried) and his son. Forsyth junr. (then in Europe) is expected to dispose of the business, probably terminating in this way Burns Philp's connection.