407 Mr R. G. Casey, Minister to the United States, to Department of External Affairs

Cablegram 127 WASHINGTON, 19 June 1940, 3.44 p.m.

SECRET

Uncertainty about French navy and uneasiness as to what lies ahead British navy is causing discussion in high quarters here about advisability of transferring some part at least of United States navy from Pacific to the Atlantic. I have argued in two relevant quarters here that it is extremely unlikely that any situation could arise in European waters that would result in net balance of hostile naval forces over Allied, which is the only situation carrying menace in the Atlantic. They do not argue strongly against this but continue to display uneasiness. They also believe that their fleet being where it is leaves their vital Panama Canal inadequately guarded.

State Department has no information regarding the Far East other than that considerable preoccupation in Japan over Indo-China. [1]

CASEY

1 This cablegram was repeated as no. 39 to S. M. Broce, High Commissioner in London.

[AA: A981, USA 78, v]