i islwids (certain) .91/. Z89 . S3 the status and use of those Pacific Islands the sovereignty over which is in dispute, has been considered carefully and the following observations are now offered* British and the American interest in these islands. The British interest is partly to be able to utilize them for purposes of aviation, both civil and military; but also to use them for purposes of colonisation by the inhabitants of other British islands in the Pacific, The advance of civilisation and of hygiene has brought about a problem of over-population the nature of which was explained in documents communicated to the United States Ambassador in London in May, 1938. The problem is now very acute, giving serious concern to the British authorities, and remedial measures cannot brook delay* Among these the most promising is the transfer of inhabitants from the over-populated to suitable uninhabited islands and schemes for effooting this are being ae$lmLy pursued. 3. On the other hand, if the position is understood correctly the American interest is not concerned with the acquisition of mere territory as such, nor with questions of re-Bettlement* American desires are* it is believed, confined to the acquisition of certain outposts fplt aviation, perhaps A certain contrast exists between the both/ both elyil and military. The American objectives have not however Hitherto been defined and this fact ssaxt necessarily inject an element of uncertainty into the suggestions which follow. 4* We should not be averse to discussing the status and the use of the islands in relation to a general system of air navigation* but it is only right to state in advance that although la the case of some ielands the British claim to sovereignty may not he unassailable, over others, to some of wh&eh we think (although we have no certainty) that the United States government may desire to lay claim* we consider our title so indisputable that we cannot hold out the hope that our view would be changed by discussion. 5* In such a ease arbitration naturally springs to the mind and we should ordinarily be glad to seek an arbitral award which would decide the issue of sovereignty beyond possibility of question; But in the present ease we should be reluctant to follow this procedure; It would necessarily be accompanied by the drawback of calling international attention to the existence of differences on colonial questions between the two governments; It might well result in attempts by other lowers to assert claims to the islands in question* And it might even start a general movement on the part of other Powers to appropriate islands in the Pacific; Nevertheless; if the United States Government should strongly desire to have/ 60 -8- ,have recourse to ^^mto^ we should be prepared to acquiesce* - £*g tbs -olosost $os/a.'lfe3.&-h^jvaja^ j&ffe ' §• a