From the Prime Minister [1], for the Prime Minister:-(Begins):

1. I have to acknowledge your No. 207 [2] informing us of the
arrangements which you propose to make with the United States on
the subject of air co-operation between the United States and
Australia.

2. Your No. 208. [3] We note the opinions you have expressed and
fully understand your point of view. It would not be possible for
us as you suggest to uncover the whole of our sea communications
with the Middle East, on which the life of the considerable armies
fighting there depends. Neither would it be possible for us to
neglect the security of Ceylon so far as it is in our power to
preserve it, or to deprive ourselves of the means of reinforcing
or defending India.

The despatch to the Pacific of three out of four of our fast
armoured aircraft carriers would as you perceive leave any
battleships we have placed or may place in the Indian Ocean
entirely unprotected from air attack and consequently unable to
operate. This would expose all our convoys to the Middle East and
India averaging nearly 50,000 men a month to destruction at the
hands of two or three fast Japanese cruisers or battle-cruisers
supported by perhaps a single aircraft carrier.

While admiring the offensive spirit of your memorandum and sharing
your desire for an early acquisition of the initiative we do not
feel that we should be justified in disregarding all other risks
and duties in the manner you suggest. These matters will, however,
no doubt form part of the discussions which will take place in
Washington when agreement has been reached upon the new
organisation proposed by the President upon which I have sent you
the views which His Majesty's Government in the United Kingdom
have transmitted to the President. [4]

4. A more detailed commentary will be telegraphed when your
proposals have been further studied by the Staffs.

(Ends).