Pacific Islands (certain)   -91/Mjf /39
1
BRITISH KHBASST*
WASHINOTOH, D. 0. f
February 13th, 1939
No. 178
My lord,
II On receipt of Your Lordship*8 despatch
/7?^°/^^     Ho. 893 (A S473A6/45) of November 11th last His
Majesty's Ambassador duly addressed a note dated
November 36th to the Secretary of "State communicating
the texts of the notes which it was proposed should be
exchanged with the United States Government for the
purpose of defining: the manner in which Canton and
Sndetfbury islands should in future be administered.
r^ 1 /A copy of this note (without its enclosures) is
enclosed herein.
2. Sir Ronald Lindsay delivered this note in
person to the competent official at the State
Department and at the same time left a memorandum
as instructed in paragraph 8 of Your Lordship*s
despatch under reference regarding the revised
attitude of His Majesty's Government towards the
scheme for the colonisation of Canton Island.   A Gopy
0 7/V$ of this memorandum is enclosed herein.   His Majesty's
Ambassador also took the opportunity of hie visit to
the State Department tox intimate orally that although
Article 2 of the notes which it was proposed to
exchange* provided for the administration of the
islands by a United States and a British official
His Majesty's Government did net consider that it
would/
The Right Honourable
The Viscount Halifax, K.G*.,
etc. , etc. , etc..
VALM:PRHM:DH \

77
-0-
would be necessary in practice for the British
administrator to reside permanently on canton Island.
Sir Ronald Lindsay thought it desirable to leave
with the state Department a short aide memoire
summarizing his remarks on this point and a copy of
this document is also enclosed herein.
3* As I had the honour to report in ray telegram
No. 60 of February 10th, the Secretary of State has
now replied to - His Majesty1s Ambassador*a note of
November 26th regarding the proposed exchange of
notes.    A copy of Mr. Hullfs note is enclosed herein,
from which it will be seen that the State Department
agree in principle with the proposal but wish to
suggest certain minor alterations in the texts of the
notes.    I should be grateful if I might be informed
in due course what reply should be made to the tate
Department on these points.
4. You will observe that Mr. Hull's note also
refers to the suggestion made to the State Department
by His Majesty's Embassy on August 4th last, in
accordance with the instructions contained in your
telegram No. 489 of July 28th, that the existing
licence granted to Pan American Airways by the United
States authorities should be cancelled and a new
licence Issued In terms agreed upon between His
Majesty's Government and the United States Government.
It will be seen that the Btate Department have
accepted this suggestion and that they have forwarded
for the observations of His Majesty's Government the
draft of the new licence which it is suggested should
be issued to Pan American Airways.   A copy of this
draft/

draft licence together with the accompanying gap
ics enclosed herein and I should he glad to know
whether It meets with the approval of Kle Majesty's
Government,
6« Mr, Hall*a note wee delivered to me on
February 10th hy a member of the State Department who
took the opportunity at the »ame time to give me a
memorandum In reply to the memorandum left at the
State Department hy Sir Ronald Lindsay on November 26th
regarding the question of colonisation (see paragraph 8
above).   The State Departments memorandum, a copy of
which is enclosed herein, states, as reported in my
telegram No* 66, that while the United States Government
are still ready to discuss with His Majesty's Government
the question of the status and use of those Pacific
islands which both Governments claim, in the meantime
they "cannot of course acquiesce in the proposed
settlement of islands which are claimed by the United
States*.
6. I am inclined to think that this does not
foreshadow any immediate or active assertion of the
United States'e claim.    On the other hand to have
expressed acquiescence in our colonising scheme or to
have Implied it by silence would no doubt have
weakened the position of the United States Government
in case at any time they may wish to reassert their
claims.
I have the honour to be,
with the highest respect,
My Lord,
Tour Lordship's most obedient,
humble servant,
(300)   V. A. i. MAXtlXT
H.M. Charge d'Affaires,