Reference Nos. 946 [1] and 1003. [2]

We cannot but express surprise at the procedure being followed in
these matters affecting vital Australian interests in the Pacific.

(1) We received from Makin a copy of a Chiefs of Staff report
dated November [3] relative to the sovereignty of British islands
in the Pacific, on which we had not been consulted or given the
opportunity of expressing any view. We consider it dangerous as
contemplated in this document even to consider giving up rights in
the Pacific as a bargaining basis for benefits in another part of
the world.

(2) As stated in your cablegram No.503 of 23rd January [4], the
United Kingdom suggested a joint commission with terms of
reference, but the answer received to the observations in our
cablegram UNO11 of 26th January [5], is that both the United
Kingdom and New Zealand representatives felt they had committed
themselves to the United States representative to hold a
conference at Washington with terms of reference as proposed in
London. This is confirmed by Fraser's personal cablegram to Dr.

Evatt of 10th February. [6]

2. It is not seen how the future use of the bases established by
the United States can be considered apart from an overall plan in
which their role would be defined, and in which the right to joint
use and reciprocity would be provided for.

3. As the Prime Ministers' Conference is being convened primarily
to consider matters pertaining to the Pacific, of which the
question of bases is a vital aspect, we are of the opinion that no
discussion in Washington should precede the Prime Ministers'
conference. The London conference will also provide the
opportunity to reach an understanding on a common British
Commonwealth course of action. If the United Kingdom and New
Zealand Governments feel they are committed to going ahead with
the Washington conference, the Australian Government must reserve
all rights in regard to conclusions which may be reached.

4. It is noted in an Australian Associated Press message from
Washington published on 16th February, that Vice Admiral Forrest
Sherman, Deputy Chief of Naval Operations, is reported to have
stated to the Senate Naval Affairs Committee that an Australian
Delegation is on the way to Washington to discuss the future of
Manus. Public statements of this nature are misleading and cause
misunderstanding and embarrassment, in view of our opinions on the
procedure which we consider should be followed. [7]

CHIFLEY