TELEGRAM SENT
                                
                              DEPARTMENT OF STATE
                                         WASHINGTON,
 
                                                                 January 8, 1942
 
AMERICAN EMBASSY
     VICHY (FRANCE)
          FOR THE AMBASSADOR
 
     Your 15, January 5, 7 p.m.
 
     In consultation with the British and Canadian Govern-
 
ments we have given very careful study and consideratoin
 
to the situation created by the occupation of St. Pierre-
 
Miquelon, which was accomplished without the consent or
 
knowledge of any of these three Governments.  With a view
 
to reaching a solution satisfactory to the governments
 
concerned, and with the concurrence of the British and
 
Canadian Governments, we have worked out the following
 
formula:
 
QUOTE Suggested arrangement with reagard to St. Pierre-
 
     Miquelon:
 
          1. The islands are French and will remain French.
 
     2. To avoid any potential threat to the shipping
 
of the Governments concerned, the use of the wireless
 
stations on the islands will be subject to supervision