I.A.C. 610. 1NTKR -JJtfPAK'n-iKNTAL COMMITTiSti ON INTERNATIONAL AIR C0M/1UN1CATI0NS Proposed Conference on ..matters concerning the Pacific Islands be hween Hip Majesty*s Governments in the United Kinp;d.-m. Auctralia and.New Zealand. Nr-te "by the Air Ministry* A "brief resume of recent negotiations with the United States Government and of notion taken in connection with the ownership of certain islands in the South Pacific was given in a note by the Air Ministry dated the 28th November (I.A.C.Paper 494) n surf - M ^« In paragraph 4 i f that paper it was explained that His Majesty's Government had come to the conclusion that the beet solution of the Pacific problem would be to have "open" aviation rights between the three Governments concerned (the United Kingdom Australia and New Zealand) and the United States Government ->n all the islands in the Pacific likely to be used as intermediate porfe of Gall. and that the United States Government should "be invited to a Conference with a view tc establishing a jcint air service on the lines already laid down with regard to the North Atlantic, This invitation was originally communicated to the United States Government < n the 30th March last. It has been renewed at intervals by His Majesty's Ambassador at Washington up to November* 1938, but no positive response has so far been forthcoming from the Unit-d States Government, who profess to fear that the general question of oceanic aviation is infinitely more difficult and must inevitably proceed at a slower pace than the administrative question of the status of the islands*. 3„ Independently of these negotiations His Majesty's Government in New Zealand In May. 1938, suggested a Conference between themselves and Hie Majesty's Governments in the United Kingdom and Australia to discuss Pacific Island matters, mainly from the aspect of the strategic importance of the Pacific islands in so far as they would provide fuelling bases for New Zealand Naval forces, landing grounds for Air Forces and sites for the establishment of wireless stations* This suggestion and the cpeetfttt as toviietter Hii? Majesty's Government could in any way supplement the efforts already made to secure the acceptance by the United States Government of the invitation tc a four-party Conference, were considered at an Inter-Departmental meeting held i the Foreign Office on the tf4tb November This meeting expressed the view » (a) thai, for the time being there was no call upon us to supplement our efforts with the United States Government; (b) that, a preliminary Conference between tht; United Kingdom, Australia and New Zealand was desirable, and (c) that suggestions fox- the agenda should be cc-ordinated by the Oversea Defence Committee on which ail the Departments concerned are represented- A copy is appended cf a note of the questions which have been suggested to the Government of New Zealand fcr the Conference* ri The Commi**Oe arfc askea to consider what instructions should he given to the United Kingdom representatives at the Conference in regard to civil aviation matters* 5« 0n th^ questions set out in the note sent to the flew Zealand Government the following comments may he made:- Question 1 (a). The joint (ILK,- U.S.) regime is at present limited to Canton and fcnderbury Islands, and the practical effect from the point of view of civil aviation is that these islands have ceased to have any value as bargaining counters in any negotiations \7ith the united States 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 and Christmas Islands, which title may be indGnger of being disputed by the United States Government* It wab agreed at the Foreign Office Conference of the 24th November that we should resist any United States demand for an extension of the joint regime to other islands of the Phoenix Group on the ground that we do not regard the status of the islands concerned as being open to question* Wo specific claim to Hull and Christmas Islands has yet been put forward by the United States Government; but,, in viow of the forcible possessive action hitherto taken by the Mnited States Government with respect to Canton Island^ and of information to the effect that the United States Navy Department is to carry out early in 1939 a hydrographlc survey of Pacific Islands including HulJ, arrangements were made, by agreement with His Majesty's Government in New Zealand, fcfer H.M.S- "Leander" to give priority in that vessel's programme of reconnaissance in the Pacific to a survey of those islands which, in the opinion of the Air Ministry, offered the best route for a future trans-Pacific service, namely, Christmas. Hull, Nukohono and.Suva, In addition preliminary constructional work, such as the demarcation of runways and areas for hangars, slipways and administrative buildings was carried f such islands as were claimed by bcth overnments was put forward on the understanding that, in the eantime, neither Government should take action which would render t more difficult to adjust conflicting claims*. His Majesty's /tMvermoent - 3 - Government expressed readiness Co discuss the question of con- ^a3JBS 821(1 t0 accept the "standstill" agreement provided , lne Phoenix Group (including Canton and Hull Islands) were deluded inasmuch as they had been incorporated in the Gilbert and hilice Islands Colony by Order in Council of March 1987.' The united States Government have not accepted that this Order in Council affects their claim to the Islands and the question of a conference to discuss sovereignty has receded by reason of the actior 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 Islands., At the Foreign Office Conference on the 24th November it was felt that any renewal by the United States Government of their proposal for a general "clean up" of islands of disputed sovereignty should be resisted as it would probably lead to the United States Government laying claim to most of the Islands in the Pacific, and should be countered by insisting with renewed vigour on our own proposal for a four-party Conference, Question 1 (e), in the event of the United States Government adopting the course referred to in this question it is for consideration as to whether our reply might take the form of intimating as courteous- ly as possible that Australia and New Zealand might not in the circumstances be able to see their way to continuing their favour- able attitude to the activities of Pan American Airways in their Pacific operations* Question 1 (d)„ As indicated above it is considered that our attitude in regard to Hull arid Christmas Islands should be that we do not regard their status as being open to question*. The Air Ministry regard British ownership of these two islands as a valuable bargain- ing counter in any four-party Conference on Pacific air problems and wou?d wish to 6ee our claims represented as unassailable. As regards other islands, there would be no objection from th^ Air Ministry point of view to the suggestion that His Majesty's Government, should intimate that they are only prepared to discuss the status of the six southern islands of the Line Group, namely, Flint. Maiden. Starbuck, Caroline, Fllippo, and Vnstok* These islands, from the point of view of civil aviation, are not considered to be of importance. It is understood, however, that the Gilbert Islands Colony and the New Zealand Government may have an interest in the colonisation of certain islands in this group* question 2„ The main inducement, in the event contemplated, would apoear to be concerted action by- the three Governments concerned directed to the withdrawal of the existing facilities for operations by Pan American Airways. Ability to exercise pressure in this direction lies mainly in the fact that the New Zealand Government possess the right to cancel their existing contract with Pan American Airways in the event of a British Company meeting with a refusal to an application for landing facilities in Unit.-d States territory. ijuegtion 3, This action might appropriately be taken when our plans for consolidating the British title to Hull and Christmas Islands are further advamced and when we are in a position to make definite financial and operational plans for the establish™ - 4 - ment of a trans-Pacific service d the lines of that projected for the North Atlantic^ questions 4 and 7. f^U-i^o^ The view of Hisy Ma jesty's Government is that the only sane way to operate Axi~J^B-^m^4M is by means ^>f a joint air service with "open'1 Aviation rights on all the*fifcnc>aiate islands situated on the route. In view of the heavy expenditure on ground organisation involved, it would seem irrational that two countries should wor^ independently on a route vhere the financial returns will be far less than on the North Atlantic service in which the United States have agreed tc co-operate. Undisputed 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 jein-t^ service. Questions 5 and 6. The advisability of an application by a British Comoany for landing rights in San Francisco and Honolulu and the position in relation to Pan American Airways' landing rights in Auckland if such an application be refused, are matters which, it ie suggested, should v/ait apon the next movement on the part of the United States in regard to our renewed invitation to a four-party Conference. U.uestion 8. This question will of course be considered in relation to the action already taken, as indicated above, on Christmas and Hull Islands. Whether or not any further steps should be taken, as adv-mce work on the ground organisation which it would be necessary to instal for the establishment of an airport, -'ill no doubt be considered • in the light of the attitude of the Australian and New Zealand Governments at the Conference, with particular reference to the importance which they att.--.ch to these islands from the defence aspect. Questions 10 and 11. The points raised in these questions appear primarily to concern the Committee of Imperial 3>efence and the Oversea Defence Committee* Air Ministry, 13th January, 19390