Your telegram 164 of 26th March [1] and Casey's 21 to me of 12th
March [2] regarding landing rights.

I have now discussed the matter with the appropriate British
authorities and it has been agreed that Pan-American Airways might
be given landing rights in Australia for their Trans-Pacific
service if the following arrangements can be made:-

(1) Reciprocal landing rights at Honolulu and San Francisco to be
made available to the Commonwealth Government for a British
service from the date of the first flight to Australia by Pan-
American Airways even though we might not be in a position to make
use of them until after the war.

(2) The position of New Zealand to be safeguarded by stipulating
that Pan-American Airways should undertake to operate alternates
flights to an Australian and a New Zealand terminal (as proposed
by Mr. Casey).

(3) The position at Noumea to be satisfactorily clarified and
since Pan-American Airways' rights are not exclusive this should
present no difficulty.

(4) That all negotiations should take place as between the
Governments (i.e. with the State Department at Washington) and
that direct discussions with Pan-American Airways should be
avoided.

(5) That the matters should be so handled that the initiative
would come not from the Commonwealth Government but from the
United States Government.

It might [for example] [4] be possible that when next the
Commonwealth Minister at Washington was approached on the matter
by the State Department he should ask that a communication should
be made to him in writing putting forward a definite proposal.

If you agree with these proposals would you please consult with
the New Zealand Government and if they are acceptable to them I
will take up the matter with Casey.

MENZIES