Repeated to London 123.

I had general talk with Secretary of State [1] to-day. He
interprets the war as entering a new and dangerous phase with
heavy sinkings of merchant vessels in Atlantic and he says that he
has spent considerable time lately impressing the gravity of the
situation for Britain, and at one stage for the United States, on
members of the Cabinet and the Defence Advisory Commission and
Congress leaders. He said that he has told them of the prospective
dangers inherent in the situation if Britain is not getting within
3 months same material support as she would be getting if the
United States was at war. He is thoroughly alive to the situation
and expresses himself most forcibly.

As regards the Far East, I emphasized the anxiety of the
Australian Government regarding Japan's next move. I told him
confidentially that Australia was doing everything humanly
possible in concert with Britain to strengthen the Singapore
defences without weakening other important areas, but I reminded
him that the demand for fighting resources was most urgent in the
actual theatres of war, and that any additional consignments that
the United States could send to the Far East would be most
welcome. He told me that decision just reached to send further 6
submarines to Manila, making 23, as well as more aircraft.

I told him of the Australian decision regarding scrap iron [2] and
enquired about further American embargoes. He said that they were
considering the licensing of all manufactured steel products, but
they thought that the time had come not to pinprick but to await
suitable opportunity to do something worth while. The Chinese
Ambassador [3] and Soong, who is Chiang Kaishek's [4] personal
representative, have made confidential proposals to British and
American Governments regarding the formation of an international
air force in China, probably recruited under the Chinese
Government to harry the Japanese and possibly also bomb Japan.

Fifty American aircraft for China are Curtiss P.40 type best
available [American] [5] fighter.

With reference to the very secret paragraph in my telegram 400.

[6] This communication has arrived at British Embassy. Ambassador
[7] is telegraphing suggested alterations recommended by various
specialist officials in the Embassy. Final document will go by
special courier to the President [8], probably on Tuesday.

I will be Hartford, Boston, New York 4th December to 6th December.

CASEY