811.0141 Phoenix Groop/105½

The Secretary of State to the British Chargé ( Mallet )

Sir: I acknowledge the receipt of Sir Ronald Lindsay’s note no. 448 dated November 26, 1938,14 enclosing drafts of the notes which it [Page 308] was proposed the British Government should exchange with the Government of the United States for the purpose of defining the manner in which Canton and Enderbury Islands are in the future to be administered. I take pleasure in expressing agreement in principle with the proposals submitted, but wish to suggest certain minor changes both as to substance and as to form. This Government proposes, for example, that the agreement should not limit the construction and operation of an airport on Canton Island to a specific company, but should be so worded as to permit such construction and operation by any company or companies satisfactory to this Government. It also proposes to omit the provision for the payment of rent. In the matter of form I suggest that paragraphs be used in preference to articles. Copies of the amended drafts, in which the proposals of this Government have been incorporated, are transmitted herewith for the consideration of the British Government.19

In the British Embassy’s aide-Mémoire of August 4, 1938,20 it was suggested that, as the title of Pan American Airways to operate on Canton Island would be derived from the permission of both Governments, a new license appropriate to joint control should be substituted for the license issued by the Secretary of the Interior April 1, 1938. This suggestion having been acceded to in principle, I am glad to enclose a draft of a new license21 which the Secretary of the Interior is prepared to issue to Pan American Airways unless objection is expressed by the British Government.

Accept [etc.]

For the Secretary of State:
R. Walton Moore