•JGRST.
With Mr. J. Balfour's
compliments.
FOREIGN OFFICE,
17th December, 1938.
4
(1) The education of formulating an agreed policy regarding
the attitude which should he adopted in the event of the United
States Government proceeding to confront us with one or other of
the undermentioned alternativesi-
(a) a demand that the joint regime should be extended
to other islands of the l>hoenix Oroup besides
Canton and V.nderburyj
(*) a renewal of their proposal of August 1933 for a
general clean-up of islands of disputed
sovereignty;
(•) a redeotion of the invitation to a four-party
conference which has been extended to them;
(d) an acceptance of this invitation eccoo«panied» how-
ever, by an intimation that the resulting dis-
cussions should also include a settJwnt of the
status of other Pacific Islands, e.g. Hull and
dhrintnvtp Inlands, to which they consider they
have a title.
(S) The question of concerting action to ensure that, in
the event of any unforeseen move on their part, pressure can be
brought to bear to induce the United states Government to consent
to a four-party conference.
(3) The question of selecting the moment when, assuming no
move by the United State* Government in the interim, it would be
most appropriate to press with renewed vigour for a four-party
conference.
Arising out of sub-headings (£) and (3) above the Air
Unistry have suggested the following items for discussions-
I.     The possibilities of the establishment of an air
service across the Pacific in co-operation with an . -merican
ooiB 'any on the lines of the projected Worth .tluntic service.
21.     The advisability of a British application being made
to the United States for landing rights in San Francisco and
..u.^.        Honolulu. • • • •
Honolulu*   By vrhoa «houl£ ouch M application bo and*; by
'i'ftBfflBn   mpire Airways, by  Antes, Union Airways. Imperial air-
ways or the New   ealund Government.
III.   If such an application ba refused are the New Zealand
Government prepared to cancel existing landing rights given to
Pan-Mmcrioun .-arways and are the Australian Government prepared
to refuse landing rights if applied for*
IV.     If the United States Government agree to the confer-
ence on the development of civil aviation in the Pacific sug-
gested by the United Kingdom Government, what main proposals
should be made to them,   (if.B.   His Majesty's Government in the
United Kingdom have suggested "open"* rights on all the islands
likely to be situated on the route of a transpacific serf Ice
and have intimated to the United States Government that they do
not exclude the feasibility that in the course of the conference
It might prove necessary to settle the status of hitherto
neglected inlands.     In practice His Majesty's Government in the
United Kingdom are of opinion that this category of island should
only include the six southern islands of the Line Group)*
V.     If at the time of the conference between the United
Kingdom. Australian and New Zealand Governments no claims have
been put forward by the United states Government to Hull and
Christens Islands, what further steps, if any. can be taken to
strengthen the British claim to these islands.
ISth December, 19(56.