811.0141 Phoenix Group/32

The Secretary of State to the British Ambassador ( Lindsay )

Excellency: Your Excellency will recall that on August 9, 1937, this Government suggested that pending a discussion with the British Government as to title to Canton Island and certain other islands in the Pacific which are claimed by both the British and American Governments neither Government should undertake, or cite, any action from that point forward,—such as the establishment of settlers on the Islands,—which would render adjustment of the conflicting claims more difficult.

Approximately three weeks thereafter, while the American Government still considered itself bound by its proposals, the British Government sent settlers and equipment to Canton Island, and in its note of October 20, 1937, while accepting in principle the proposed standstill, nullified the effect of this acceptance by specifically excepting from the proposed discussion the Island of Canton and the Phoenix Group of islands. Since then, despite several conversations between officials of the Department and Your Excellency, the proviso excepting the [Page 81] islands of the Phoenix Group from the discussion has never been withdrawn.

In the circumstances, the American Government is reluctantly obliged to conclude that the British Government is not willing to accept the method of settlement by means of a standstill during discussions as to the title to Canton Island and certain other islands in the Pacific, and is compelled to reiterate that it does not accept as binding upon it the British Order-in-Council of March 18, 1937, incorporating in the Gilbert and Ellice Islands Colony the Phoenix Group of islands. Further, it can not accept as a valid basis for a claim to any one island possession established by occupation subsequent to its note of August 9, 1937.

The American Government is still desirous of entering as soon as possible into discussions with the British Government as to the status and use of the Pacific Islands which both Governments claim. Meanwhile, however, as the British Government has chosen to support its claim by sending settlers to Canton Island, and possibly other islands in the Phoenix Group, the American Government feels free, pending the outcome of the discussions, to adopt similar measures.

Accept [etc.]

Cordell Hull