500.A4b/547½
The Secretary to the British Empire Delegation to the Secretary of State
Dear Mr. Hughes: On the subject of the status quo as regards fortifications and naval bases in the Pacific, on which you spoke to me this morning, I enclose, with Mr. Balfour’s permission, a carbon copy of a Memorandum I made at the time from memory, of a conversation which he and you had at the Pan American Building on Thursday, December 1st, at 3.30 p.m., at which I was present.39
[Page 247]From the second paragraph of this Memorandum, you will see that Mr. Balfour began by giving a very full account of a conversation he had had with Baron Kato the same morning. Had I been making a formal record for joint use, I should no doubt have recapitulated the whole of what Mr. Balfour said. As, however, at the time, my Memorandum was prepared merely for office use, and what Baron Kato said was already included in my Note of the earlier conversation, I merely referred to the previous record.
Turning, therefore, to this record (also made from memory) of Mr. Balfour’s previous conversation with Baron Kato, I find at the end, Mr. Balfour is mentioned as obtaining permission to put the considerations urged by Baron Kato, very frankly before you. I further find that Baron Kato made the definite proposal that America should agree not to fortify Manila. Guam or Hawaii, and that Japan, in return, should agree not to proceed with her present plans for fortifying Formosa, the Pescadores and Oshima. Curiously enough, I find no mention of the Bonin Islands. It may be that the interpreter omitted to mention the Bonin Islands, or perhaps I myself overlooked them. I was hearing some of these names practically for the first time. I was taking no note, and it is quite likely that I overlooked the Bonin Islands, though I remember writing down the name of Oshima, which was new to me. However this may be, I observe that in my Memorandum of the triple conversation which took place on the following afternoon (December 2nd) at 5.30, (a document labelled S. W. 10, which you have)40 is a note that Baron Kato said Japan would agree not to fortify the four islands named to Mr. Balfour. Then there is a note in brackets that the islands named to Mr. Balfour were Formosa, the Pescadores and Oshima.
Very sincerely yours,