CONFIDENTIAL With the Compliments of the Under-Secretary of State for Foreign Affairs. Foreign Office, 8 i8i53-3 (4) NO DISTRIBUTION. Decode and Decypher, iir, iviallet (Washington), 6th January, 1959. D. 6. 6 p.m. 6th January, 1939. R. 9.50 a.m.. 7th January, 1959. fio. 7 \ AM- R Begins. Your despatch Do. 895. Text is not yet obtainable but, according to the press, report of naval bo^rd presented to Congress on January 5rd recommends A. Iicmediate establishment oi air bases on the following Pacific Islands: 1. Ford, Pearl Harbour. 2. Hanehoe, Oahu. 3. Midway. 4. Wake. 5. Johnston. 6. Palmyra* 7. Guam. and B. subsequently on:~ 8. Canton, 9. Rose. and C. the immediate establishment of submarine bases at 7, 8 and 9 above. R Ends. Bill embodying the Board's recommendations is expected to be among the first of the defence measures to come before this Congress when public interest may well be re-awakened in regard to the conflict of claims of His idajesty's Government and United States Government in the Pacific. In this anticipation, would you wish to enter special caveat as regards Canton at this stage with the State Department? If so, I should be grateful for fullest instructions by telegraph. The ouestion also arises whether I should mention Palmyra. There appears to be no mention in the renort of either Hull or Christmas Islands.