The Department of State would be happy to enter into informal
conversations with representatives of the Australian Government at
an early convenient opportunity with respect to the desire of the
United States to obtain in the Admiralty Islands long-term base
rights to be shared jointly with Australia.

The United States has taken note of Australia's expressed
intention of placing the mandated territory of New Guinea within
the Trusteeship System of the United Nations. The United States
assumes that it is the intention of the Australian Government that
Australia shall be designated the administering authority over the
whole mandated territory of New Guinea in any trusteeship
arrangements worked out in accordance with the United Nations
Charter. The United States regards itself as a state directly
concerned in the negotiation of any trusteeship agreement or
agreements covering the mandated territory of New Guinea.

In line with the foregoing, there are attached two documents which
express certain views with reference to long-term base rights in
the Admiralty Islands, both of which documents are informal
working papers and are not to be considered as expressing at this
time the final views of the United States Government.

The first such document is a preliminary draft of a proposed base
agreement between Australia and the United States relative to base
rights in the Admiralty Islands.

The second document is a draft of certain clauses which the United
States feels should be included in any trusteeship agreement
covering the Admiralty Islands. These clauses, it will be noted,
relate primarily to security matters. The United States, of
course, reserves the right to express its views with reference to
any aspects of any proposed trusteeship agreement or agreements
for the mandated territory of New Guinea.

The Department of State will welcome an early expression of the
views of the Australian Government concerning the foregoing
questions. It will be glad to discuss these matters informally
with representatives of Australia whenever convenient.

Attachment I
The Governments of the United States and the Commonwealth of
Australia, taking note of the expressed intention of the
Government of Australia to take appropriate steps for placing the
mandated territory of New Guinea within the trusteeship system in
accordance with Article 77 of the United Nations Charter, and
deeming it desirable in the interests of international peace and
security that the Government of the United States should share
jointly with Australia the rights and obligations specified in
Annex A of this agreement with respect to military bases and
facilities in the Admiralty Islands agree:

1. That under the terms of the Trusteeship agreement to be
negotiated by the states directly concerned in accordance with
Articles 79 and 81 of the Charter, Australia shall be designated
as administering authority of the trust territory and that
Australia shall have authority to establish and erect such
military installations in the Admiralty Islands as may be agreed
upon by the Governments of Australia and the United States, to
make provision for the security of such installations, and to
conclude such agreements with the United States as may be
necessary for the exercise by the United States of the rights and
obligations specified in Annex A of this agreement.

2. That under the terms of such Trusteeship agreement the areas
containing these bases and facilities shall be declared a
strategic area; the bases and facilities therein may be made
available to the Security Council by Australia as administering
authority, with the approval of the United States in each
instance, in accordance with any agreement or agreements Australia
may make under Article 43 of the United Nations Charter.

3. That the Australian Government will expedite the negotiation of
such Trusteeship agreement.

4. That the Government of the United States, in view of its direct
concern, will take such steps as may be appropriate to further the
prompt conclusion of such Trusteeship agreement.

5. That the two Governments will reach agreement on the terms of
such Trusteeship agreement, and, having done so, will agree not to
consent to the termination, alteration, or amendment of such
Trusteeship agreement without prior agreement between themselves.

6. That the present agreement shall enter into force upon
ratification by the United States and the Commonwealth of
Australia, in accordance with their respective constitutional
processes, and shall continue in force for 99 years and for such
further time as may be mutually agreed upon, unless previously
altered, amended, or terminated by mutual consent.

Annex A:

In order that the United States and Australia may share
responsibility for the defense of the Admiralty Islands and for
the establishment, utilization and maintenance of military bases
thereon, it is mutually agreed between the two Governments that:

1. The Admiralty Islands are to be declared a strategic area; the
geographic limits of such area are: latitude 1( 30' South and 3(
10' South and longitude 145( 50' East and 148( 10' East.

2. Except as provided in paragraph 2 of this agreement, the area
defined in paragraph 1 of Annex A and the facilities thereon shall
not be made available to the armed forces of another government
without the consent of Australia and the United States.

3. The United States, jointly with Australia, possesses rights
(a) to occupy, maintain, improve, operate and control the naval
base presently established on Manus, a military air base (Momote)
on Los Negros, military air facilities at Pitylui, Ponani, and
Lombrun, and military bases at such other sites on Manus Island,
Seeadler Harbor, and the adjacent land areas as may from time to
time be mutually agreed upon;

(b) to install, maintain, operate and control at locations within
the Admiralty Islands to be mutually agreed upon, facilities for
defense, including warning systems, weather reporting,
communication and aids to navigation;

(c) to operate military craft, including aircraft, vessels, and
vehicles into, through, over, and away from the Admiralty Islands
without restriction except as mutually agreed upon; and
(d) to utilize the port, transportation and communication
facilities in the Admiralty Islands required in the exercise of
the rights accorded, and to install and improve such as may be
mutually agreed upon.

4. The United States possesses rights
(a) to import, station, store in or remove from the Admiralty
Islands, personnel, material and supplies required in the exercise
of the rights accorded, free of customs, duties and taxes, and
imposts of any kind
(b) to have exclusive jurisdiction over United States military
personnel present in the Admiralty Islands in the exercise of the
rights accorded. (In the United States view, this point would be
covered by United States rights under international law, but the
inclusion of this specific provision might be desirable.)
5. With respect to the already existing military installations in
the Admiralty Islands, all of which have been built by the United
States with the approval of the Australian Government at the
expense of the United States, the Australian Government undertakes
to maintain at its own expense such of these existing military
installations as are necessary in the opinion of the appropriate
military authorities of the two countries; with respect to any
additional military installations and facilities in the Admiralty
islands, the two Governments undertake to establish and maintain
any such installations and facilities in accordance with plans
mutually agreed upon, the costs of establishment and maintenance
to be borne by the Government proposing the construction of the
installation or facility concerned, except as otherwise agreed
upon.

6. The Government of the United States shall have the right, if in
its judgment conditions at the time make such action necessary, to
assume control upon due notification to the Australian
authorities, of any or all of the military installations and
facilities in the Admiralty Islands, such control to continue for
such time as the United States considers necessary; the United
States undertakes to pay the expense of the maintenance of such
installations and facilities during such periods of temporary
control by the United States.

7. The United States is not hereby committed to maintain military
forces or facilities in the Admiralty Islands when in its judgment
such military forces or facilities are not necessary.

Attachment II
1. Definition of Admiralty Islands as a strategic area with
boundaries:

1( 30' and 3( 10' south latitude,
145( 50' and 148( 10' east longitude.

2. Designation of Australia as administering authority of the
trust territory.

3. A clause or clauses giving Australia full legislative and
administrative control in the trust territory subject only to the
provisions of the Charter of the United Nations and the terms of
the Trusteeship agreement. The clause or clauses should be so
drawn as to make it clear that the United States possesses no
responsibilities, rights, or powers with respect to the
administration of the territory and its inhabitants.

4. The administering authority may establish, maintain, and
control such bases, facilities, and forces, and take such measures
for their security, as it may deem necessary or desirable in the
trust territory.

5. Nothing in this Trusteeship agreement shall preclude the
administering authority from maintaining existing agreements and
entering into such additional agreements as it may deem necessary
or desirable with another member of the United Nations with
respect to sharing rights of occupation and operation, and
responsibility for the establishment, maintenance and control of
existing or additional military bases and facilities in the trust
territory (i.e. the Admiralty Islands strategic area), provided,
however, that no such agreements shall preclude the offer of such
bases and facilities to the Security Council of the United Nations
on its call.

6. The amendment, alteration, or termination of this Trusteeship
agreement shall be only by unanimous agreement of the signatories
(i.e. the states directly concerned), subject to the approval of
the Security Council.