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396
6.
Remembering the satisfactory working of our Treaty
with Iraq, there seems much to be said for keeping to a minimum any reference to defence in the published agreement.
f
Since the meeting, Washington have forwarded new Articles setting out their requirements which distert to our disadvantage the sense of the covering clause agreed with the U.S. delegates and approved by the War Cabinet/ They have also re-inserted clauses which confer practically unlimited rights as proposed in their original draft leases. The negotiations are therefore
now at a standstill pending instructions to the Secretary of State for the Colonies from the War Cabinet.
(Signed) S.R. BAILEY.
Enclosure II,
W.M.(41)14th Conclusions formula A; which reads
as follows:
It is recognised that the Defence of the Leased Areas and the Territories in which they lie is of mutual interest and concern to the United States and His Majesty's Government, and questions of mutual defence shall be the subject of agreement between the two parties, due regard being given to the position of the Governors of the Territories as representatives of His Majesty, When the United States is engaged in war or in time of other emergency, it shall have all such rights in the territory and the surrounding waters and air spaces as may be necessary for conducting military operations.
Great George Street, S.W.1.
11TH FEBRUARY, 1941.
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