I had a long and satisfactory talk with the President yesterday.

Acheson of the State Department was present. First of all the
President indicated his keenness as to the raising of the status
of the two Legations to that of Embassy. He said this was a
recognition by the United States of the greatly increased status
of Australia in international affairs. He made a generous
reference to yourself, Mr. Curtin and myself in this connection. I
had explained to him our general attitude on the question of Manus
and Pacific bases, keeping closely to the principle that while
giving rights of uses in the various islands, it was equally
essential for us that the United States should assume some duties
of a defence character in the area. He said that a strict treaty
would be difficult on the grounds that American obligations would
be extended to an area far outside their present hemispherical
sphere of influence, meaning North and Latin America.

I said that American obligations need not perhaps be evidenced by
formal undertakings but by an informal statement of policy and,
best of all, by making it clear that the defence of Australia and
New Zealand and their territories was involved and not merely the
defence of particular bases, such as Manus.

I told him that Byrnes had been apprehensive lest Russia should
regard any reciprocal arrangements in the Pacific as directed
against her. The President immediately replied that any
undertaking would be of a purely defensive character and that
Russia's objections on this point should not be given any
consideration. He made it clear, however, that at present the
discussions should remain tentative and informal.

We also discussed atomic energy and Security Council matters and
he expressed great satisfaction at the co-operation now taking
place between the United States and Australia in both bodies.

I was the guest of the Canadian Ambassador at Washington for
luncheon. Lord Inverchapel was present and spoke to me about
Indonesia. He was very critical of the Dutch and spoke admiringly
of some of the Indonesians. He said that it had been agreed that
the matter would be settled on the basis of the concession by the
French to the nationalist movement in Indo-China. He said that the
Dutch had gone back on this, particularly the Dutch in Indonesia,
and had tried to betray Van Mook. He thinks the British should not
remain in Indonesia after the Japanese have gone and that the
Dutch should not be allowed to keep the Japanese there for the
purpose of suppressing the Indonesians.

Later I had a conference at the State Department with Hickerson
and representatives of the Navy and Army, at which Forsyth and
McIntyre were present. The discussions were quite informal and I
again made clear our attitude as indicated to the President, and
also by you and myself in London. [1] A further suggestion,
however, came out during the discussions, namely that without any
formal treaty it might be arranged for the United States to use
not only Manus but facilities in other Australian ports, providing
the Australian services in turn were given the right to use United
States facilities in United States and allied bases north of the
Equator, which might include, for example, Truk, Guam and Manila.

Of course, if this were done, financial arrangements would have to
be carefully considered, but it would appear clearly as a mutual
defence arrangement of practical kind, showing to the world that
the countries concerned, using common facilities in time of peace,
would be almost certain to be working together in time of war.

I am sure the talks, particularly with the service people, were of
value, and I may have something additional to report next week.