DRAFT TKLBflgAM TO TH* HIGH CCmn&RJQHm
FOR MS UfK.   IN NEW ZRALAND AND TN THK
CQMMONV;EALTH OP AUSTRALIA.
Our telegram No.
Consideration of Australian proposals
reveals serious objections to their adoption.
(a) Main objection is that proposals do not accord
with policy of open door and complete reciprocity in
Pacific which U.K. Government desire to establish.
e contemplate operation right across Pacific of British
and American services in close co-operation with
reciprocal landing rights in New Zealand and American
Continent respectively, open rights at intermediate
stopping places, common use of ground organisation and
mutual consultation regarding time tables and frequency.
Australian proposals abandon above principles and
sectionalise operations.
Other objections seen to scheme are
(b) it abandons idea of direct Empire Commonwealth air
link between Canada and New Zealand forging new bonds
between Commonwealth partners,    (c)   It restricts
development of Imperial communications,    (d) Bargain
is completely one-sided.      On the one hand reciprocal
rights in U.S. territory to v/hlch we are entitled are
surrendered and on other hand rights in Christmas and
other British Islands North of Equator are accorded
without compensating advantages, seeing that we already
possess suitable intermediate airports in South Pacific
which should only be exchanged for reciprocal rights
in U.S. islands, particularly Hawaii.
/U.K.
U.K. Government are therefore opposed to
adoption of Australian scheme which involves these
disadvantages and to accept position that American
air service v/ould alone provide important part of
link between New Zealand and Canada,
As regards actual operation of route
British flying "boats which will fly North Atlantic
this summer have range necessary for Trans-Pacific
service and there is no reason why development of
latter service by Commonwealth interests should be
regarded as remote contingency.
Please put following considerations to
Australian Government emphasising fact that
forthcoming conference would appear to provide an
excellent opportunity of discussing the matter
further.