Foreign Relations of the United States Diplomatic Papers, 1938, The British Commonwealth, Europe, Near East, and Africa, Volume II

811.0141 Phoenix Group/88

The British Embassy to the Department of State

Aide-Mémoire

His Majesty’s Government have had before them the contents of the Aide-Mémoire regarding the status of Canton and Enderbury Islands which the Counsellor of the State Department was so good as to hand to His Majesty’s Ambassador on the 28th April and Sir Ronald Lindsay has now been instructed to make the following observations thereon.

1. The reply of His Majesty’s Government acceding in principle to the establishment of a trust in respect of Canton and Enderbury Islands related to these two islands only because it was understood that they alone formed the subject of the original proposal of the United States Government. This proposal followed immediately upon the occupation of these two islands by direction of the United States Government and no others were named in the personal message from the President which the United States Ambassador delivered orally to Lord Halifax on the 10th March, or in the President’s Executive Order of the 3rd March. Had His Majesty’s Government understood that this message was intended to relate to other islands it would obviously have been necessary to clarify its scope before the proposal could have been considered.

2. Two months having elapsed since the United States Government sent an expedition to occupy Canton and Enderbury Islands His Majesty’s Government in the United Kingdom are very averse to any further delay in issuing a public statement with regard to the proposal for a joint trust to which they agreed over a month ago. Apart from the interest displayed in Parliament and in the British press there is evidence that curiosity has been aroused in other quarters; the German and Japanese Embassies in London, for example, have both addressed enquiries to the Foreign Office on the subject. The time for the issue of an agreed announcement would thus seem overdue. His Majesty’s Government consider however that it would be most inadvisable for this announcement to contain any reference to other conflicting claims. In the first place such a reference is unnecessary since no arrangement arrived at with regard to the two given islands can prejudice the position with regard to other islands. Secondly it would necessarily encourage the inference by international opinion that there exist outstanding differences of an extensive nature between the two Governments. Thirdly it would suggest to interested parties that there are islands to which neither Government possesses a good title, and it might thus lead to attempts by other countries to assert claims.

3. His Majesty’s Government take note of the fact that the agreed announcement suggested by the United States Government contains a statement to the effect that the two islands in question will be “used in common for purposes connected with international aviation and communication with equal facilities for each party”. Considering that information has been received from the British Administrator on Canton Island to the effect that a United States party is already engaged in surveying the island and in determining the most suitable site for an air base, His Majesty’s Government in the United Kingdom can only interpret the foregoing statement as meaning that any structure and ground facilities eventually erected on Canton Island by Pan-American Airways in pursuance of the licence issued to them by the United States Department of the Interior will, in due course and upon payment of an agreed proportionate cost or by some other reciprocal arrangement, be made available for use by a British air service on a basis of full equality. This being so it is desired to point out that the terms of the licence, for example Clause 10,⁸⁹ are incompatible with the foregoing interpretation. His Majesty’s Government must therefore place it on record that they will not be able to recognise this licence as in any way prejudicing British rights in the islands and in particular the right to equal facilities as indicated above. They also consider that when the present survey work is completed the actual area which Pan-American Airways propose to reserve as an air base should be the subject of agreement reached locally between the administrators appointed by each Government and they would be glad to receive assurances from the United States Government that they concur in this procedure.

4. With reference to the proposal for the colonisation of Canton Island from the Gilbert and Ellice Islands group His Majesty’s Government can assure the United States Government that, as already indicated in paragraph 5 of the Aide-Mémoire handed to the United States Ambassador on the 30th March, this matter has been the subject of close study by His Majesty’s Government who, at the time when the United States Government recently sent a party to occupy Canton and Enderbury Islands, had plans in an advanced stage for carrying out the colonisation of Canton Island, a measure which they have good reason to regard as perfectly practicable. They would be happy to place their information on this subject at the disposal of the United States Government in order to convince them that it is important to proceed with the scheme of settlement in the interest of the surplus population of the Gilbert and Ellice Islands. It is not however the intention of His Majesty’s Government to demand priority for the areas to be eventually reserved for the settlement of these people which they believe can be effected on Canton Island without detriment to the arrangements for an air base. They would suggest for the purposes of administration that this eventual settlement should be placed under the jurisdiction of a British administrator and whilst they have no immediate intention of despatching a preliminary expedition, as proposed in their memorandum under reference, they anticipate that they may desire to do so in the course of the next few months. They would therefore wish for a specific reference to the colonisation scheme to be mentioned in the proposed exchange of notes. In the meantime they earnestly trust that the United States Government will be able to indicate their agreement to His Majesty’s Government proceeding with this scheme on Canton Island, the actual allocation of land for settlement purposes being determined in consultation between the United States representative on the spot and the local British Administrator.

If the United States Government concur in the foregoing views His Majesty’s Government in the United Kingdom would suggest that the draft communiqué for publication which has been proposed to them should be simplified and receive certain amendments of form so as to read as follows:

“The Governments of the United States of America and of the United Kingdom have agreed to set up a régime on the islands of Canton and Enderbury in the Phoenix Group, with a view more particularly to their use in common for purposes connected with international aviation and communication, with equal facilities for each party. The details of the régime will be determined in notes to be exchanged between the two Governments.”

Washington , May 23, 1938.

89. The text of clause 10 reads: “The licensee agrees that the premises will not be used for any unlawful purposes nor for any purpose other than the operation of licensed aircraft of American registry in commercial trans-Pacific air transport service.”