Last paragraph your telegram 240. [1] Following arguments have
been suggested by Defence Committee with approval of War Cabinet.

(A) Only sure way to defeat Japan and protect U.S.A. interests in
the Far East is by naval forces in Far East. These require chain
of bases in South-western Pacific to give fleet necessary
mobility.

(B) Such bases would allow the U.S.A. to use bases in the
Philippines for offensive action if attacked by Japan.

(C) Such bases would materially assist in maintaining the status
quo in the Dutch East Indies because of the potential threat from
the U.S.A. Fleet.

(D) These bases would enable the U.S.A. fleet to assist Australia
and New Zealand against any attack by Japan, thus assisting in
preventing Japan from obtaining a hegemony of the Western Pacific.

(E) These bases would form an outer screen for the U.S.A. fleet in
the defence of U.S.A. trade and territory.

For your own information Defence Committee concluded that it would
be most advantageous to United States to have use of bases in
South-Western Pacific if they wish to undertake offensive action
against Japan. Singapore and Manila most important as final
operational bases for this purpose but in event of successful
Japanese attack on Dutch East Indies Darwin and Port Moresby would
be of enhanced importance. Suitable bases for offensive action
against Japan exist or are being developed in Suva, Port Moresby
and Darwin and could be used for this purpose at least for
cruisers and light forces. Other suitable sites such as Suva Bay
(Fiji), New Guinea and Bynoe Harbour (near Darwin) might be leased
if political considerations allowed.

Question primarily naval but air and army units would be necessary
for security of bases and adequate shore based aircraft would be
required to provide distant sea reconnaissance supported by
striking force.