D.O. '
J.O. 3.
SECRET   y r.
4ff
Communications on this subject
should be addressed to—
n>er-secretary of state,
Dominions Office,
Downing Street, London, 8.W.1,
and the following number quoted :—
Subject :
RECEIVE;
^'9MAR1939
Reference to previous correspondent:.
Letter        the Dominions Office of tfie
Transmitted by direction of the Secretary of State for
yA     Dominion Affairs.
A copy has also been sent to the * *   * "   aj^f   T 'r
Dominions Office, Downing Street,
8 MArt 1959
193
D.O.
wF 720/220.
PARAHKA9E TEL:x>RAU
To the Governments of the Commonwealth of Australia and
New Zealand.
(Sent 11.55 p.m., 7th March, 1939.)
Secret.
No.17.
No.33.
Reference ray despatch of 12th December Commonwealth
of Australia No. 395 New 2ealand No. 359.       While suggesting
a few slight verbal alterations1 in terras of notes United
States Government have nov/ agreed with proposals in principle.
They have at the same time communicated to His Majesty's
Ambassador at Washington a meiaorandura intimating that on
several occasions the United States Government has stated
that it is desirous of entering into discussions with the
United Kingdom Government concerning the status and use of
those Pacific Islands which both Governments claim and is
ready at any date agreeable to the United Kingdom
Government to institute such discussions;   in the meantime it
cannot of course acquiesce in the proposed settlement of
the islands which are claimed "by the United States.
It. is proposed to instruct His Majesty's
Ambassador to reply on following lines:-    * Begins.
(1)   It is believed by His Majesty's Government in the
United Kingdom that the fundamental aims of the t?/o
Governments are broadly similar and that the difference
between them is mainly one of emphasis.       United States
Government have mainly stressed desire to arrive at a general
settlement of conflicting claims to islands and wiBh
question ef air navigation rights to be treated separately. .
On the other hand United Kingdom Government have attached
greater importance to question of air navigation rights and
consider