IMMEDIATE

Please see telegram No. 29 from New Zealand and No. 3 from
Dominions Office.

Both telegrams are under consideration here. Advice from the
Department of Defence is delayed pending consultation with
B.C.O.F. so that we are not yet in a position to convey an
official reply to the Prime Minister of New Zealand. However, we
would be glad if you would pass to the New Zealand Department of
External Affairs the following as preliminary political views.

1. We feel it is essential for our Governments to share in the
obligations involved in the maintenance of security in the Pacific
and it is imperative to share in the military occupation of Japan
at least until the terms of the Peace Settlement and the future
control mechanism in Japan are decided.

2. We feel, for our part, that any move in the direction of
withdrawal from the occupation would weaken our claim and right to
participate as a principal in the Peace Settlement.

3. The long-term political, economic and commercial considerations
mentioned in paragraph 6 of the United Kingdom cable appear
convincing and we would be glad to undertake negotiations with the
United States authorities if Service reports on the proposals are
favourable.