n From Governor of Newfoundland (St. John's) To Marquess of Lothian d. October 13th, 1940 (7-36 p.m.) r. " " " (1.15 a.m.) Addressed to Secretary of State for Dominion Affairs, telegram 661 repeated to His Majesty's Ambassador at Washington telegram No« 5, High Commissioner United Kingdom Ottawa [? 20] and Commander in Chief. Secret. Reference to telegram from His Majesty's Ambassador in Washington to Foreign Office No. 2±rfr5 of October 11th. We entirely agree with reasons put forward by Ambassador for urging the United States Government to proceed with active construction pending settlement of all questions of terms of leasing in our telegram to you No. 651 of October 8th repeated to Ambassador on that date as No. h we urged .the execution of a simple lease in order to expedite action because American representatives on^permanent joint Defence Board had stated that United States Government could not constitutionally expend money on real estate in a foreign country until legal title was vested in that Government. If this difficulty can be overcome we are quite willing that work should be commenced as soon as sites have been definitely delimited to satisfaction of United States Government even though in some cases final and accurate description cannot be given. In Ambassador's message under reference he appears under a misapprehension as to extent to which agreement has been reached regarding bases in Newfoundland. The sites (1) in St. John's for naval base and in vicinity for military barracks for reinforced battalion of about 2000 men. (2) in Argentia (near Placentia) for naval and naval air base. (3) Near Argentia for supply and training base for a division of about 16000 men - have all been chosen and agreed to and boundaries roughly settled. These boundaries are moreover subject to detailed accurate delimitation by surveyals but we would not insist even on this being completed if United States Government are prepared to commence operations.beforehand. The*emergency flying field near St. George's has not yet been chosen. The U.S.Government does not propose to have an air-base in or near St. Johns. The Canadian Government is surveying an area/ area for this purpose and we preaume will accord facilities for use to United States air forces. We would "be grateful if Ambassador would send us a copy of draft of lease mentioned in his telegram under reference.