MINUTE SHEET. Reference.................................................
/  A^O   /</6   t     fx Colt'--
' The present position regarding the United States
bases is as follows:
(1) General,
a. Commencement of '.York,     It would seem
from the Foreign Office telegrams that in addition to
Newfoundland all the Colonial Governments with the
possible exception of Bermuda> have now agreed to work
being begun by the American authorities once agreement
has been reached regarding the location of the bases.
We have telegraphed to London "to ask for definite
confirmation of this in order that we may then inform
the American authorities,   I thinki however, that
in the meantime you can safely inform Colonel Knox that
two or three of the Colonies have already signified
their agreement ( St. Lucia, Jamaica and the Bahamas
to be exact) and that we hope to be uble to give him
full information regarding the position of all the Colonie
very shortly.
b. Labour conditions.   In his letter to
Colonel Knox of October.14th>.the Ambassador made it
clear that in all oases it was hoped that the American
authorities would, as far as possible, employ local
labour.   In a telegram from Newfoundland it was stated
that Admiral Greensbde had indicated that they had been
instructed not to import any labour unless the local
supply was exhausted.
This is satisfactory as far as Newfoundland
is concerned and it is to be hoped that similar instruc-
tions will be issued in respect of all the other bases.
But it would be nice if we could have' some definite
indication from Colonel Knox of the United States ^
Governments views and I think therefore that you
could quite well remind him o'f the fact that the
Ambassador's letter is still without a reply and point
out that the question of the employment of local labour
is one to which the different Colonial authorities
naturally attach a lot of importance.
Furthermore, on October 26th you yourself
wrote to Colonel Knox saying that it was* hoped that the
American authorities would be willing to fix the rates
of pay for labourers engaged on the bases In consult-
ation With the local authoritjes, so as to avoid up-
settihg^tne xaDOur market!   There has hardly been time
for Colonel Knox to consider this letter "but here again
you might refer to it and say that you are hoping to
get an early and satisfactory reply.
c. British Contractors. In his letter of
October 14th to Colonel Knox the Ambassador said that
he had been instructed to express the hope that the
h American authorities would allow reputable 3ritish
H or Dominion firms of contractors to tender for some of
* the work concerned.   There has been no reply from
Colonel Knox to this letter and you might therefore
remind him of the point and express the hope that a
sympathetic reply will shortly be forthcoming.
a./
[OVKR.
<U   Arbitration of disputes.   In conversation
with the President and Colonel Knox on October 14th, the
Ambassador in explaining why the original leases for
Newfoundland and Bermuda were inacceptable threw out
the suggestion that "a simpler form of lease was
preferable with some clause providing for an umpire
nominated by the two Secretaries-of State, who could
adjust minor local difficulties where disagreement arose
on the spot."      For the reasons given in paragraph 3
of Foreign Office telegram 2821 (paper 2391/26/40) this
suggestion of the Ambassador's has not met with approval
in London and we are instructed to try and withdraw it
^and instead "to intimate to the United States authorities
in general terms that H.M. Government are convinced that
any difficulties arising locally can be overcome amicably
in the ordinary course of negotiations."     The Ambassador
suggestion was only made in the course of conversation
and I do not think that it can be regarded as a definite
proposal.     Indeed the subsequent letter which the Navy
Department have agreed would be suitable to cover the
question of the Newfoundland lease contains no reference
to the appointment of any such umpire.    I think therefore
that it should not be difficult to explain matters to
Colonel Knox on the lines indicated by the Foreign Office
• »
e.   Form of agreement.   Almost immediately
the original notes were exchanged on September 2nd, the
Foreign Office a'sked us for information regarding "the
form which the U.S. Government desired the eventual
detailed settlement to take, i.e. is it to be drawn up
as a regular treaty or in some form which would not
invoke submission to the Senate."*    The Ambassador agreed
that it was premature to make enquiries on this point
and when the Foreign Office reminded us again about
the point on October 14th, the Ambassador was still of
the same opinion.    As however the Foreign Office have
now again reverted to the point (see F.O. telegram
2839 (paper 2391/27/40) perhaps we had better make some
enquiries on the subject.   The question is, however, more
of a political than a legal one and perhaps therefore
Mr. Butler will put the point to Colonel Knox direct.
I see no reason why we should not ask the question
direct or why any particularV'discreet enquiries"should
be necessary. °
2.   Newfoundland.     We have now received
the observations of the Government of Newfoundland
and of the authorities in London on the proposed letter
which it is suggested should be sent to the Navy Depart-
ment in order to enable the American authorities to begin
work at once.   Both London a"nd Newfoundland agree in
principle that some such letter should be sent and although
they wish to make certain modifications in the draft,
these are not very substantial (and in regard to the
most important point of difference we have discretion
to accept the American wording at a pinch).     I would
suggest that it will be enough to inform Colonel Knox
of the position in general and suggest that Mr. Foster
call on the appropriate official at the Navy Department
in order to reach final agreement on the text of the
letter.     It is important, however,- that Colonel Knox
should understand the Newfoundland arrangement must
not/
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Reference
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not be regarded as setting a precedent for the other
Colonies where conditions are very different. London
have promised us to give us their advice as to how
the situation in respect of these other Colonies can
best be handled.
3. Bermuda.   It seems that as a result of
Admiral Greenslade's second visit a satisfactory settlement
of the location of the base in Bermuda has b;.en reached.
We here, however, do not know the details of this settlement
and until we do there does not seem to be any further
action for us to take.     Once the details are known and a
Bermuda has signified its agreement, some form of letter
similar to that to be effected in the case of Newfoundland
will have to be drafted.   It is apparently contemplated
in London issuing some statement to the press ubout Bermuda
and Bermuda have therefore asked that pending consideration
of this point, nothing should be published here in Washington.
,A suggestion to this effect has already been made to the
|Navy Department but Mr. Butler might like to make the
point to Colonel Knox as well.
4. The Bahamas.   The United States Mission have
put forward certain proposals which though rather wider
than anticipated, should not cause great difficulties.
London have not yet, however, expressed any opinion on
the American proposals.
5. Jamaica.   The American Mission have put
forward certain proposals, the majority of which have
evoked no objections from the local Government.
London do not yet seem to have expressed any opinion.
6. Antigua.   Although it first seemed that the
American proposals were too widespread for the Governor's
taste Admiral Greenslade seems now to have modified his
requirements and it looks as if there might be no great
difficulties.    Furthermore, the Governor's suggestion "that
work might be postponed until June, 19^1f seems to have
gone down quite well with Admiral Greenslade.
!• St. Lucia.   The proposals   suggested by the
American Mission raise considerable local difficulties.
London's views have not yet been received but   it looks
as if there may be trouble here.
8»    Trinidad.   The American proposals which
really amount to turning Trinidad into a base from which
the American Army can defend South America have aroused the
most violent objections from the Governor who has made
a series of counter-proposals.   We do not know L0ndon's
views on the subject but it seems clear that we are in
for a lot of trouble   here.   It may well be that Admiral
Greenslade will have to go back for a second visit.
9.   British Guiana.   The tentative proposals made
by the American Mission aroused no local objections and
it is to be hoped therefore that there will be no
difficulties here.
great
ctober 19U0.
[OVER.