Repeated to London No. 80.

Conclusion of United States Canada Defence Council and lease of
sites for American bases in British West Indies has inspired press
references here and elsewhere to possibility of extension of
arrangements either or both of these lines to Pacific and
Australia.

Whilst I do not believe the United States will consider any such
extension before November election for domestic political reasons
I think it is not impossible after the elections.

In conversation with Berle [1] to-day I thought it proper to
inform him that cables from Australia speculating on the above did
not arise from His Majesty's Government in the Commonwealth of
Australia. In reply as regards lease of British West Indies bases
he said that he was watching public opinion reaction which he
believed would confirm and welcome the arrangement but he believed
public discussion of the possibility of the extension of such an
arrangement to the Pacific was unwise at present. He went on to
say 'If any such arrangement is possible in future, it should be
arranged quickly and confidentially.'
I suggested [sic] your not building any immediate hopes on the
above, but it was a significant remark. I think it would be wise
to damp down any public discussion at present.

It would be valuable for me to have from you the views of the
Government defence Advisers as to the most telling arguments that
I could have up my sleeve for use on appropriate opportunities
respecting the value to the United States of joint use existing
bases or rights to lease and build their own bases or other such
arrangements in south west Pacific.

CASEY