“Instead of living in a tranquil corner of the globe, we are now on the verge of the most unsettled region of the world.” In these words the Minister for External Affairs, Mr. R. G. Casey, neatly summarised both the main problem of Australian foreign affairs and the changed situation in which any policy framed by an Australian Government must now function. It may also, perhaps, be thought that the Minister’s words convey a hint of that wistful regret for a more simple, clearly defined, situation which is still prominent in the attitude of most Australians towards the complex problems of the New Asia. It all used to be so easy: there was Britain, controlling the seas, ruling in her Indian Empire the main land mass of southern Asia. Holland occupied the regions immediately adjacent to Australia; peaceful, civilised Holland. The French in Indo-China removed that area from any need for consideration. China was weak, divided, and dominated by the foreign powers. There was only Japan, a real but distant menace.