CANBERRA, 8 April 1946 Cablegrams 161, 112
TOP SECRET IMMEDIATE
Your telegram D.316.  United States request for bases.
1. On 20th March Department of State handed to Australian Legation a memorandum suggesting informal conversations concerning use of base in Admiralty Islands.  Two documents were attached, namely a preliminary draft of a proposed agreement on bases and a draft of clauses for inclusion in any trusteeship agreement in respect of New Guinea. These documents followed closely terms of drafts submitted to New Zealand by United States. We shall not of course enter into discussions with United States on these matters prior to forthcoming discussions in London.
2. We feel that a communication to United States along lines of last two sentences in paragraph 7 of your telegram D.316  may lead United States to expect early agreement on bases on terms satisfactory to them.
We do not think it would be wise to create any such expectation pending completion of London talks.