The United States Secretary of State recently approached us with a
view to securing Long-Term Military Base Rights in territories
(mainly in the Pacific) administered by the United Kingdom and
asked for our support of United States negotiations for post-war
base requirements in Iceland and in Portuguese Atlantic islands.

Mr. Byrnes further asked us to waive our claims to 25 Pacific
islands in which the United States dispute our sovereignty.

In connection with this approach Mr. Byrnes has informed us in
strict confidence that he intends to make a similar approach to
the Australian and New Zealand Governments regarding certain
territories administered by those Governments. (We understand that
this would include one place under Australian and one under New
Zealand Mandate.)
We have made it clear to Mr. Byrnes that, while it is of course
for him to approach the Australian and New Zealand Governments, we
for our part feel bound to inform you at once that we have learnt
that such an approach is to be expected. We are considering the
position urgently here and will telegraph again to you as soon as
possible giving our preliminary views as to how best to deal with
the approach made to us. We are naturally anxious to keep in
closest touch on this.

Please take steps to ensure that the strictest secrecy is ensured
as regards this approach.