ANNEX 2
 
U. S.                                        December 30, 1941.
BRITISH
 
            HIGHER DIRECTION OF WAR IN THE ABDA AREA
 
     1.        On all important military matters, not within the jurisdiction of the Supreme
Commander of the ABDA Area, the U.S. Chiefs of Staff and the representatives in Washington of
the British Chiefs of Staff will constitute the agency for developing and submitting
recommendations for decision by the President of the United States and by the British Prime
Minister and Minister of Defence.    Among the chief matters on which decisions will be required
are:
 
               a.        The provision of reinforcements.
               b.   A major change in policy.
               c.        Departure from the Supreme Commander's directive.
 
     2.    This agency will function as follows:
 
          a.   Any proposal coming either from the Supreme Commander or from any of
the ABDA govermnents will be transmitted to the Chiefs of Staff Committee both in Washington
and in London,
 
                        b.         The Chiefs of Staff Committee in London will immediately telegraph to
their representatives in Washington to say whether or not they will be telegraphing any opinions.
 
                        c.         On receipt of these opinions, the U. S. Chiefs of Staff and the
representatives in Washington of the British Chiefs of Staff will develop and submit their
recommendations to the President, and by telegraph to the Prime Minister and Minister of
Defence. The Prime Minister will then inform the President whether he is in agreement with these
recommendations.
 
          3.        Since London has the machinery for consulting the Dominion Governments, and
since the Dutch Government is in London, the British Government will be responsible for
obtaining their views and agreement, and for including these in the final telegram to Washington.
 
          4.        Agreement having been reached between the President and the Prime Minister and
Minister of Defence,. the orders to the Supreme Commander will be dispatched from Washington
in the name of both of them.