In the Supreme Court of Western Australia         No. 1676 of 1993

BETWEEN:

DAVID JOHN CAWDELL IRVING

Plaintiff

- and -

JEREMY JONES

First Defendant

- and -

AUSTRALIA ISRAEL PUBLICATIONS

Second Defendant

EXHIBIT NOTE

Date of Document: 23 February 1994

Filed on behalf of: The First and Second Defendants

Date of filing: 1994

Prepared by:

Arnold Bloch Leibler Solicitor Code: 54

Solicitors & Consultants DX: 455

Level 21 Tel: 629 7444

333 Collins Street Ref: AHN:934829:KAV

MELBOURNE VIC 3000 (Mr A H Northam)

This is the exhibit marked "AHN18" referred to by ANTHONY HUGH NORTHAM in his Affidavit sworn this 23rd day of February 1994.

1 Pennington Street, London El 9XN|
Telephone: 071-782 5941 Fax: 071-782 5860

From the Legal Department Our Ref: ST/OOB/92/AJB

Date: 20th January 1994

Your Ref: AHN:TMB:924829

Hugh Northam, Esq., BY FAX AND POST

Arnold Bloch Leibler,
333 Collins Street,
Melbourne,
Victoria 3000,
Australia.

Dear Mr. Northam,

DAVID IRVING -v- JEREMY JONES AND AUSTRALIA ISRAEL PUBLICATIONS

I apologise for the delay in following up in writing your letter of 4th January and our subsequent telephone conversation.

As I explained, it is correct that David Irving is suing The Sunday Times for breach of contract over the publication in 1992 of extracts from the Goebbels Diaries. However, Mr. Irving's Affidavit in the Herald & Weekly Times action is singularly silent on the fact that not only are we vigorously defending Irving's claim, but we have also filed a substantial Counterclaim and are confident of our chances of success.

The counterclaim consists of a claim for breach of confidence and breach of contract and/or warranty and/or misrepresentation. In the unlikely event that the court finds that The Sunday Times is in breach of contract, our expectation is that any damages awarded in respect of our counterclaim will effectively extinguish those awarded to Irving under his claim.

Matters have been held in abeyance since last summer when David Irving applied for Legal Aid. We were informed just before Christmas that he had been granted provisional Legal Aid for his solicitors to prepare the papers for Junior counsel and to obtain counsel's further opinion on merits and quantum after a consultation with Leading Counsel.

Full discovery has not yet taken place and this will obviously be the first matter we pursue once we are informed that Mr. Irving will be proceeding to take this action to trial.

I hope this information is of assistance.

Yours sincerely,

signed

Patricia Burge