Australian Eastern Mission

It ran from 21 March to 14 June 1934 and concentrated on China, the Netherlands East Indies and Japan, with shorter visits to the British colonies of Hong Kong, Malaya, and Singapore and the American-administered Philippines.

Latham's recommendations from the mission were influential on the Lyons government's trade and foreign policies in the lead-up to World War II, contributing to the expansion of the Department of External Affairs and the appointment of Australia's first diplomats in Asia later in the 1930s.

His first years in office saw increasing concerns in Australia over regional security, in the wake of the Manchurian Crisis and Japan's withdrawal from the League of Nations.

[2] Latham was privately tasked by Lyons with directly determining Japan's attitude to the League of Nations and "her terms for a final settlement of the Manchurian question".

[10] Latham's travels were largely facilitated by the British officials in the Foreign Office, owing to the lack of Australian representation in those countries.

There was some subsequent conflict between the Foreign Office and the DEA over the itinerary and matters of protocol, and also an unsuccessful attempt to have Latham chaperoned by the British ambassador to Japan, Francis Lindley.

[6] In Japan, Latham met with foreign minister Kōki Hirota on 12 May 1934, with the Japanese occupation of Manchuria and withdrawal from the League of Nations being the primary topics of discussion.

Latham's encouragement for Japan to rejoin the League was rebuffed and Hirota made clear that de jure recognition of Manchoukuo would be a prerequisite for a Japanese return to internationalism.

Latham committed to raising Wang's concerns with the Australian cabinet and later noted in his report that concessions on White Australia might assist in the development of trade with China and Japan.

[...] Accordingly, the maintenance of friendly relations between Australia and our neighbours and, more generally, the maintenance of peace in the East, should be the major objective of Australian foreign policy.Latham's official report brushed over the diplomatic and defence aspects of the mission, which were covered in a separate document titled "Secret Report on the International Position in the Far East" presented to Lyons.

This concluded that the AEM had accomplished its missions of spreading goodwill and clarifying the Japanese position on Manchuria, but that it had failed to steer Japan back to internationalism.

[19] Latham strongly supported the expansion of the trade commissioner service, with particular priority to be given to China and the Dutch East Indies.

[17] The criticisms of the state of the Singapore naval base reinforced Australian concerns that the British military could not be relied upon in the event of a wider conflict in the Pacific and contributed towards Lyons' commitment to rearmament throughout the remainder of the 1930s.

Latham told The Shanghai Times that, while Australia maintained the right to appointment its own ambassadors, "both the interests of my country and our natural loyalty to Great Britain make it desirable that there should be unity in matters of major importance".