Your 60 and 67. Civil Aviation in Japan.
In our view the question of aviation in relation to Japan is a matter for final decision at the peace settlement. Preparatory discussions may help to define the issues but should on no account anticipate final decisions at peace settlement. We wish our representative in Washington to be associated in any such discussion.
On this basis we support the views expressed by New Zealand Government  and put forward the following preliminary views.
1. It is our contention that Japan shall be permanently prohibited from ow[n]ing any military or naval aircraft, and shall not manufacture or operate civil aircraft during the period of control.
2. We wish to reserve right to establish external airlines to Japan from Australia although it may not be convenient to implement this right at the moment.
3. In connection with internal airlines we wish to reserve right to participate by (a) establishing our own services or (b) being party to an international organisation, according to which of these policies is adopted by the powers concerned.
4. With reference to Para. 3 above we feel that a joint International Organisation would obviate conflict of international interests. Internal services should be entirely separated from external services. We do not consider that cabotage rights should be permitted.