You will appreciate the very different emphasis in the draft terms
contained in our telegram No. 11. [1] 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.