PARAPJKA3E TEU#HAM To the United Kingdom High Commissioners in the Commonwealth of Australia and How Zealand. (Bent 10 p.m.. 17th March, 1939.) Reference my immediately preceding telegram. Objections aeon to adoption of proposals of His Majesty^ Government in the Commonwealth of Australia for sectionalioation of the Trans-Pacific Air rout© are as follows:~ (a) The main objection iS that proposals do not accord with policy of open door and complete reciprocity in Pacific which we should like to see established. Our plan would he the operation right across the Pacific'of United States and British Commonwealth services in close co-operation, with reciprocal landing rights in New Zealand and /jnerican 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 the idea of a direct British Commonwealth air link between Canada and Australia and New Zealand. (c) It restircts general devlopment of Imperial communications and prevent3 completion of trunk route round the world. (d) The bargain is completely one-sided. On the one hand reciprocal rights Which wo are entitled to claim in United States territory are surrendered and on other hand hand rights in Christmas and other British Islands North of Equator are accorded without compensating advantages. We already possess suitable intermediate airporr* in South Pacific rights in which could properly "be exchanged for reciprocal rights in United states' island*, particularly Hawaii. We are therefore opposed to adoption of Australian scheme which involves these disactvantage* and to acceptance of position that United States air service would alone provide important part of link bctwoen Australia- New Zealand and Canada. It may be argued that Australian proposals ar* intended only as short term? policy pending conclusion of later arrangement for.full through service on hasis of reciprocity. It seems to us however that a subsequent . development on the linos we desire would "be prejudiced rather than facilitated "by proposed sectionalisation. Hcreover, 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 British Commonwealth interests should be regarded as remote contingency. Please put the above mentioned ccr-oiderations to Commonwealth Government emphasising fact that an excellent opportunity of discussing the matter further would appear to be provifled by forthcoming Conference, Addressed High Corariissioner, Canberra Ho.53. Repeated High Commissioner Wellington No* 12.