DEPARTMENT OF STATE
WASHINGTON
February 8. 1989
Sir;
I acknowledge the receipt of Sir Ronald Lindsay's
note no. 448 dated November 26, 1938, enclosing drafts
of the notes which it was proposed the British Govern-
ment should exchange with the Government of the United
States for the purpose of defining the manner in which
Canton and Enderbury Islands are in the future to be
administered*   I take pleasure in expressing agreement
in principle with the proposals submitted, but wish to
suggest certain minor changes both as to substance and
as to form.   This Government proposes, for example, that
the agreement should not limit the construction and
operation of an airport on Canton Island to a specific
company, but should be so worded as to permit such construc-
tion and operation by any company or companies satisfactory
to this Government.   It also proposes to omit the provision
for
Mr. V. A. L. Mallet, C.M.G
British Charge* d»Affaires ad interim.

-2-
for the payment of rent.   In the matter of form I suggest
that paragraphs be used In preference to articles. Copies
of the amended drafts, in which the proposals of this
Government have been incorporated, are transmitted here-
with for the consideration of the British Government,
In the British Embassy's aide-memoire of August 4,
Airways to operate on Canton Island would be derived from
the permission of both Governments, a new license appro-
priate to Joint control should be substituted for the
license issued by the Secretary of the Interior April 1,
1938.   This suggestion having been acceded to In principle,
I am glad to enclose a draft of a new license which the
Secretary of the Interior is prepared to issue to Pan
American Airways unless objection is expressed by the
British Government.
Accept, Sir, the renewed assurances of my high
consideration.
it was suggested that, as the title of Pan American
For the Secretary of State:
Enclosures:
1. Copies of
draft notes.
2. Draft copy
of license.
811.0141 Phoenix Group/107
Coda 0444