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      policy must be compatible with the honor, dignity, and interests 
      of France.
 
      
 
 
(8) Before receipt of the British memorandum the French Government 
      publicly and repeatedly declared their determination to retain 
      control of their colonial empire and fleet. They have taken steps 
      to ensure the respect of rights in this connection recognized 
      by the armistice.
 
      
 
 
(3) The French Government earnestly desire a modus vivendl 
      as regards trade between France and the colonies.
 
      
 
 
(4) The French Government cannot accept the British interpretation 
      of their attitude and consider themselves the offended party. 
      They hope to reach the fruits of their policy of patience from 
      which they have departed only recently and with regret. Ends.
 
      
 
 
2. His Majesty's Ambassador at Madrid has been instructed 
      to convey orally to his French colleague the observations of 
      His Majesty's Government on this note. Following is summary of 
      his instructions. Begins.
 
      
 
 
(1) Although disappointed at the tenor of the reply, His Majesty's 
      Government is still prepared to continue discussion on lines 
      indicated in latest communication.
 
      
 
 
(2) His Majesty's Government remind the French Government 
      that they intend to secure full restoration of independence and 
      greatness of France. They have rejected all suggestions of a 
      peace whereby Germany and Italy would be paid off with French 
      territory. For this reason and on account of our own military 
      requirements we must do everything we can to keep the French