PACIFIC BASES

Grey River Argus, 16 May 1946, Page 5

PACIFIC BASES

U.S.A. Request to British

WASHINGTON, May 14.

The Under-Secretary of State, Mr. Acheson, stated that .Britain and the United States have heen ■ discussing for some time the control of disputed pacific islands—Christmas, Canton and Funafuti. Mr. Acheson confirmed that a broad scale economic agreement with France, granting credits exceeding 1,000.000.000 dollars will be concluded shortly.

He also confirmed that the United States was withholding the projected 50,000,000 dollar credit to Poland pending clarification of the Polish censorship situation and whether Poland intends to furnish the United States with information on its international and economic relations. LONDON, May 14.

It is understood that America has very politely indicated that it would be a graceful gesture on the part f Britain if islands in the Pacific were handed over to the United States in view of the loan being granted to Britain. Britain wants American cooperation, but not on these terms. Britain needs the loan, though she does not like the idea of it, but when the questions of bases and imperial preference are involved she has t? take into account the Dominion views.