IMMEDIATE

Your 60 and 67. Civil Aviation in Japan.

In our view the question of aviation in relation to Japan is a
matter for final decision at the peace settlement. Preparatory
discussions may help to define the issues but should on no account
anticipate final decisions at peace settlement. We wish our
representative in Washington to be associated in any such
discussion.

On this basis we support the views expressed by New Zealand
Government [1] and put forward the following preliminary views.

1. It is our contention that Japan shall be permanently prohibited
from ow[n]ing any military or naval aircraft, and shall not
manufacture or operate civil aircraft during the period of
control.

2. We wish to reserve right to establish external airlines to
Japan from Australia although it may not be convenient to
implement this right at the moment.

3. In connection with internal airlines we wish to reserve right
to participate by (a) establishing our own services or (b) being
party to an international organisation, according to which of
these policies is adopted by the powers concerned.

4. With reference to Para. 3 above we feel that a joint
International Organisation would obviate conflict of international
interests. Internal services should be entirely separated from
external services. We do not consider that cabotage rights should
be permitted.