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A brief reouru6 of record, negotiations with the United
States Government and of action taken in connection with the
ownership of certain islands in the  ;outh Pacific war, given in a
note by the Air Ministry dates the 28th nov.^iber (I.A.C.Paper 494).
S.       In paragraph 4 of that paper it was explained that His
ajeat.y's Government had come to the conclusion that the best
solution of the Pacific problem would be to have ''open" aviation
rights between the three ov.'erma.nto concerned (the United Kingdom,
Australia and New ".ealand) and the United atates Government on all
the islands in the Pacific likely to be >frerv©d by a trans-Pacific
air service* and that the United states Government should be
invited to a Conference with a view to establishing a Joint air
service on the lines already laid down with regard to the T'orth
Atlantic.    ?his invitation was originally communicated to the
United states ''-overnment on the 30th March last.     It has been
renewed at intervals by His 7?ajeoty,« Ambassador at Washington
up to Itoveraber 1930, but no positive response has so far b en
forthcoming from the United s ates Government, who profess to
fea* that the general question of oceanic aviation is infinite^
More difficult and must inevitably procoed at a slower pace than
the administrative question of the status of the islands.
3.      Independently of these negotiations His ajesty's
Government in !7ew lealand in Hay, 1938, suggested a Conference
between themselves and His /ajesty's Governments in the United
Kingdom and Australia to discuss Pacific Island matters, iMainly
from the aspect of the strategic impo tance of the Pacific
islands in so far as they would provide fuelling bases for New
Zealand naval forces, landing grounds for Air forces ar.d sites
for the establishment of wireless   stations.     This suggestion
antf the question whether His Majesty's Government coulrl in any
wajr suppl^nent the efforts already made to secure the acceptance*
by the United states Government of the invitation to a four-par'y
Conference, were considered at an Inter-Bepartmental meeting held ol
the foreign Office on the 24th ?:overrfber.    This meeting expressed
the view -
(a) that fbr the time being there was   m eel upon us to
suppletttent our- efforts wi h the United states
Government j
(b) that a preliminary Conference between the United rlngdora,
Australia and New Zealand wae deferable, and
(e) that suggestions for the agenda should be coordinated 1
by the Oversea Defence tfenmlttee on which all the
Departments concerned are represented.
A copy is appended of a note of the questions which
have been suggested to the Government of Kew Zealand for the
Conference.
A
-s-
4.      The Committee arc asked to consider that instructions
should be given to the United /ingdcm representatives a' the
•onference in regard to civil aviation Matters*
ft*      On the questions set out In the note sent to the
New Zealand Government the following comments nay "be raadei-
"Kflf on I (al»
The joint (O.K.- re ln« is at present limited to
a ton ar.d   .nder'>ury Islands, and the practical effect from the
point of view of civil aviation Is that thene islands have ceased
to have any value as bargaining counters in any negotiations with
the United 'itates for the common use of air facilities for a
trans-Pacific service.    This fact brings into the foreground
the Importance of consolidating our title to other islands,
particularly Hull end Christinas Islands,which title Am in danger
of being disputed by the United nates ~evernnent. A It was
agreed at the foreign Office 'onference of the 2'th :*ovenber that
we should resist any United nates demand for an extension of the
joint regime to other islands of the Phoenix c-roup on the ground
that we do not regard the status of the islands concerned as
bein/j open to question*     No specific claim to Hull and
Christmas islands has yet been put forward by the United states
Government;   but, in view of the forcible possessive action
hitherto taken by the Ignited nates   -overnraent with respect to
Canton Island? and of information to the effect that the United
State* narvgr Department is to carry our early In 193?) a
hydro graphic survey of Pacific Islands including Hull, a--range-
raents were made* by agreement with Hie Majesty's Government in
New 2ealandt for H.M.3. "leander" to give priority in that
t»       ...y1in q{ rjtt^^^jjjP— in the Pacific to a survey
usuv £cu (z -ice) (iZctc (mz cu dzc£*dk< £
U /ukvSUc (Z In^cl aUS<£ tJUrf
British observing ana ir^r«x.w tmmm--_
provision of operational equipment for an air service, it was
recommended that, for the purpose of showing our active and
possessive interest ir the Island^a jetty and moorings should e*
once be provided.
The original offer of the United itates oovernray
discuss the sovereignty of such islands as were claimed V
Governments was put forward on the understanding that, %f
Meantime, neither government should take action which w* :
it more difficult to adjust conflicting claims. His/
/oovemmei
t
-8-
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4.       The Conaaittee are asked to consider that instructions
should be given to the united -'ingdom representatives a' the
conference in regard to civil aviation matters.
I«      On the questions set out in the note sent to the
New Zealand Government the following comments nay be made*-
;;ttcat ;„Qn l tab
The Joint (U.K.- 0*3«) re ine is at present limited to
Cs ton and -.nder-ury Islands, and the practical effect from the
point of view of civil aviation is that thene islands have ceased
to have any value as bargaining counters in any negotiations with
the United states for the common use of air facilities for a
trana-Pacific service.     This fact, hrin&s into the foreground
the i portanee of consolidating our title to other islands,
particularly Hull an i Christinas Islands,which title/la in danger
of being disputed by the United States Government. A It was
agreed at the Foreign Office Conference of the 84th November that
we should resist any United mates demand for an extension of the
Joint regime to other islands of the Phoenix f>roup on tho ground
that we do not regard the status of the islands concerned as
being open to question.    No specific claim to Hull and
Christmas Islands has yet been put forward by the United tates
Government;   but, in view of the forcible possessive actior
hitherto taken by the ttnited States 'overnraent with respect to
Canton Island? and of information to the effect that the United
States tfavy Department is to carry our early in 1939 a
hydro graphic survey of Pacific islands including Hull, arrange-
ments were made, by agreement with Hia Majesty1 s Government in
Tiew Zealand, for it. . . "leander" to give priority in that
vessel's programme of reco naissance in the Pacific to a survey
of these islands which, in the opinion of the Air ministry,
offered the best route for a future trans-Pacific service, namelyi
Christmas Island, Hull, ;;ukonono and Suva*     In addition
preliminary constructional work, such as the demarcation of
runways and areas for hangars, slipways and administrative
buildings was carried out at these islands and notices were
erected reserving areas for aviation purposes.
At an Inter-Departmental meeting convened by the Air
Ministry on the 30th December to discuss what further practical
measures could be taken to strengthen the British claim to
Christmas Island it was reeomaended that the administrative
officer on Christmas Island should be provided with meteorological
eauipment (at a cost of about £100) and be given instruction in
taking meteorological observations for transmission to Panning
Island from whence they could be passed on by cable to the
Central Pacific J^eteorological station.     AS soon aa raeteorologici
observations are rer^ilarly collected and transmitted the Island
would be showr. in international meteorological lists as a
British observing and reporting station.     Aa regards the
provision of operational equipment for an air service, it was
recommended that, for the purpose of showing our active and
possessive interest In the Island^a Jetty and moorings should at
once be provided. ^
The original offer of the United States Government *»
discuss the sovereignty of such islands as were claimed by be«
Governments was pat fbreard on the understanding that, in tn«
meantime, neither Government should take action which would rer.de:
it more difficult to adjust conflicting claims.    His ?iaj#i*/ 8
/Government
r t
Oovemment expressed readiness to discuss the question of
conflicting claims and to accept the "standstill" agreement
provided that the Phoenix Group (including Canton and Hall
islands) were excluded Inasmuch as they had been incorporated
in the Gilbert and cilice Islands colony by Order in CooM*l,f< -
6f March 1937.   The United states r'-orernment have not peasantsad
this order in Oouncll^and the question of a conference to discuss
sovereignty hfis receded "by reason of the action taken by the
United states Government at Canton and the apparent desire of
that Government to confine further negotiations (at least for
the present) to the nature of the joint administration to be set
up with respect to Canton and .enderbury Inlands.     At the Foreign
( ffice conference on the 24th roveriber it was felt that any renew*
¦hv tha United states covemment o" their proposal for a general
da of disputed sovereignty should be resisted
y lead to the TJnited    ates Government laying
,e i elands in the Pacific, end should be
ing wi'h renewed vigour on our own proposal
nference.
d- \f 'i^ td \Ls«4c<uIl^ j%* Jf !£? *mlt«* 3tB*eB <Ww'M«t adopting
7 ' V' 1 *? ln thlc question it ie for consideration
Ir  /- ilvk.Jy. „ ¥c? .  'ht take th* fV,rm of intimating as
WtyiM^Lc dble that Australia and ROT "ealand .Sght not
8*   *.?b** to Gee thelr        to continuing their
; to the activities of Pan Anwrican Airways in
i ions.
ItZ hJ Z O^L : tu
ttsd above it is considered that out attitude ir
Christinas Islands should be that we do not
i as being open to question. The Air T'xnistry
trship of these two islands as a valuable
in any four-party conference on Pacific
tul   wish to see our claims represented as
rarards other islands, [?t has wlS0esteqj
tovcrnment should intimate that they are only
I th   status of the six southern i slants of the
» *lint, :'alden, Otarbuck, Caroline, Pillppo,
.elands, from the point of view of civil
sonsidered to be of importance. ,
inducement, in the event conte plated, woul _
"ted action by *he1Kree Governments concernea
thdrawal of the existing facilities for
Sl lian Airways.     Ability to exerciae
.rection lies mainly in the fact that the New
pesasaa the rlgit to cancel their existing
,:rican Airways in the event of a British
tii a refusal to an application for landing
*d states territory.
ion mi&ht appropriately be taken vdien our plans
the British title to Hull and Christinas
¦¦¦ F advanced and when we are in a position to
make definite financial and operational plans for the establish-
ment of a trans-Pacific service on the lines of that projected
for the ??orth Atlantic.
/ uestiona
-3-
Oovernment expressed reaiUness to discuss the question of
conflicting claims and to accept the 11 standstill" agreement
provided that the Phoenix croup (including Canton and Hull
7 nlande) v;ore excluded inasmuch as they had been incorporated
in the Gilbert and  ;lliee Inlands colony by Order in Council,-
6t March 193V.   The *:nited states '-OYernment have not recognise a
6£-vV  this Order in  :ouncil*and the question of a conference to discuss
sovereignty hns receded by reason of the action taken by the
United states soverament at c<mton and the apparent desire of
that Government to confine further negotiations (at least for
i   the present) to the nature of the Joint administration to be set
up with respect to Canton and ftnderbury Inlands.     At the Foreign
J   Office conference on the 24th rovenber it was felt that any renew*
by the United states ' ovornment of their proposal for a general
"clean up" of islands of disputed sovereignty should be resisted
as it would probably lead to the United     ates Government laying
claim to niont of the Islands in the "acific, end should be
countered by insioting win renewed vigour on our own proposal
for a four—party Conference.
fwrtlon 1(c)*
In the mm t of the United Ota tee Government adopting
the ccuroe referred to in this question it tc for consideration
as to^whether our reply Wltftt take the form of intimating an
courteously as possible that Australia and Hew Zealand nisht not
in the circumstances be able to see their way to continuing their
favourable attitude to the activities of Pan American Airways in
their Pacific opera'Ions.
6
c
A
As indicated above it is considered that oufr attitude in
regard to Hull and Christmas Islands should be that we do not
regard their statue as being open to question.    The Air ?,*inistry
rwgard 3ritieh ownership of these two islands as a valuable
bargaining counter in any four-party conference on Pacific
air problems and woul-f wish to see our claims represented as
unassailable.     Ab regards other islands,(It, has been suggestetLJ
that Hie t-ajety's Government should intimate that they are only
prepared to discusb th   status of the six southern 1 elan's of the
Line Oroup, namely, 7lint, ;.Talden, 3tarbuck, Caroline, ?ilippo,
and yostox.     Theseielands, from the point of view of civil
aviation, are not considered to be of importance.
aagpwonJg.*
The main inducement, in the event contemplated, would
appear to be concerted action by theHsree Governments concerned
directed to the withdrawal of the existing facilities for
operations by rtin American Airways.     Ability to exercise
pressure in this direction Ilea mainly in the fact that the New
Zealand Government possess the rlgkt to cancel their existing
contract with Pan American Airwaye in the event of a British
Company nMtlttg with a refusal to an application for landing
facilities in United states territory.
This action might appropriately be taken when our plans
for consolidating the British title to Hull and Christmas
Islands are further advanced and when we are in a position to
make definite financial and operational plans for the establish-
ment of a trans-Pacific service on the lines of that projected
for the ??orth Atlantic.
/Questions
\
4 and
The view of His Majesty1s Government is that the
only sane way to operate in the Pacific is by means of a joint
.    air service with "open** aviation ri$its on all the 'islands
situated on the route.     In view of the heavy expenditure
on ground organisation involved, it would so em irrational
that two countries should woxfc independently on a route
where the financial returns v*ill be far less than on the
: orth Atlantic service in which the United, itates have
agreed to co-oporate*     'Tndisputed ownership of as many of
the key islands .in the Pacific as-possible -would enhance
our bargaining counters and therefore promote recognition
of the desirability of a Joint service.
The advisability of on application by a British
Cee&any for landing rights in Ban Francisco and Honolulu and
the position in relation to Pen'American Airways1 landing
riijhts in -\uokland if such an application be refused, nre
matters which, it is suggested, should wait upon the next
movement on the part of the United states in regard to our
renewed invitation to a four-party oonfernnce.
¦^u.':Qtlto..l,9f.
This question will of course be considered in
relation to the action already   talcen, as indicated above,
on Christrias ana Hull Islands.     Vfhethcr or not any further
steps should be tafcen, as advance work on the ground ,
organisation which it would be necessary to instal for the
establishment of an airport, will no doubt be considered
in the light a? the attitude of the Australian and Sew r.ealand
Governments at the Conference, with particular reference to
tli© i po;.itance which they attach to these islands from the
defence'aspect.
7.1
'he points raised in these cuestiono appear primarily
to concern the Committee of Iciperial Defence and th© Ovfirsea
defence Committee.
Air Ministry,
13th January, 1939.