It seems to us that the 
      British Government by making such a gesture would receive an 
      amount of good will in this country worth many times the comparatively 
      small amount of money involved. These Bases should be a lasting 
      tangible reminder to our people of a generous gesture on the 
      part of the British Government. Moreover the matter could be 
      finished at an early date and the people in the Colonies could 
      obtain prompt payment for their properties to which they are 
                       of course entitled.                  
                                                            
 
                                                            
 
 
                                                            
If you approve, we shall 
      take this up personally and informally with Mr. Eden along the 
      following lines. We shall make it clear to him that we recognize 
      that the exchange of notes of September 2, 1940 antedates the 
      Lend-lease policy and has no connection with it; that by that 
      exchange of notes the United States assumed an obligation to 
      pay for the private property required for the Bases and we are, 
      of course, prepared to carry out that obligation, but that it 
      has occurred to us that the British Government might desire to 
      consider offering to assume this obligation under Reverse Lend-lease; 
      that if his Government should think well of this personal and 
      informal suggestion, we would be glad if it would make the proposal 
      officially; and that if the suggestion is not viewed with favor 
      we shall proceed with our efforts to reconcile existing differences 
      and in due course pay the claims in accordance with the obligation 
     assumed under the exchange of notes of September 2, 194