711.5627/72

Memorandum by Mr. Stephen Latchford of the Treaty Division

The negotiations for an air navigation agreement with the Netherlands became involved because of a request of the War Department, concurred in by the Navy Department, that the Philippine Islands, the Hawaiian Islands and the Panama Canal Zone be omitted from air navigation agreements.

In connection with the negotiations with Great Britain the Department agreed to a formula whereby it would be possible if either government desired to include any of its territories in the agreement in addition to those specified at the time the agreement becomes effective. This formula seems to be entirely unobjectional. It is possible that the War and Navy Departments might be willing in the future to modify their attitude somewhat if it can be shown that there are special reasons for including additional territorial possessions in the agreements that we negotiate.

The British Government recently made a special request that we include the Philippine Islands in the proposed air navigation agreement with Great Britain. We are unable to agree to this because of the attitude of the War and Navy Departments. However, we have asked the British Government to include Newfoundland and Labrador in the agreement. It may be that the British Government will inform us that they will do this if we will agree to include the Philippine Islands. If this comes about we may find it advisable to consult the War and Navy Departments.

If by any chance we agree to include the Philippine Islands in the agreement with Great Britain we will no doubt be caused considerable embarrassment with the Netherland Government because of that Government’s disappointment when it was informed that the Philippine [Page 636] Islands would have to be excluded from the air navigation agreement with the Netherlands. If we include the Philippine Islands in the agreement with Great Britain we can perhaps persuade the War and Navy Departments to agree to have the Philippine Islands included in the agreement with the Netherlands provided the Nether-land Government will include Netherland India. If this is the case it would be very convenient for us to have a formula for applying the Netherland agreement to additional territories similar to the formula that we have agreed to in the negotiations with Great Britain.

S[tephen] L[atchford]