7. The visit by Dulles should be of great value. If you would think it useful for him to stay at the Lodge and will send me radiogram in clear to the ship, I will so arrange.
8. As to the Japanese peace settlement, I think that we probably have similar views, i.e. that while some measure of Japanese re-armament is inevitable, unless the Americans are to accept permanent obligations to defend the Japanese themselves, we may still use our own opposition as a means of bargaining. At the same time I would earnestly advise that we should not push the United States too hard for formal obligation. We undoubtedly have their goodwill and may tend to lessen it by insisting too much upon formula. I would be attracted by the notion of a Pacific Defence Council limited to the Island Nations of the Pacific though the political implications of including Japan are obvious and I do not really believe either the Philippines or Indonesia has a sufficiently stable Government to be a usefully contributing partner. Quite frankly some general arrangements for cooperation at Ministerial and staff level between the United States, Canada, New Zealand and ourselves would seem to me to hold the most promise.