You will appreciate the very different emphasis in the draft terms contained in our telegram No. 11.  We would never be forgiven if arrangements for Pacific bases were made except in conjunction with the overall arrangement for mutual defence. There is a tendency on the part of United States to isolate such questions from one another when really they are part and parcel of the same broad question as to the future Pacific set up. For the same reason it should be pointed out that we must resist any discussions of territorial adjustments in the Pacific except as a whole and in our presence.
I am sure that Peter Fraser will appreciate the supreme importance and significance of this matter and I would show him our telegram No. 11.
It would be most helpful if the Conference could be held in Australia.