THE WHITE HOUSE                       
 
                                                            
 
 
           THE RIGHT HONORABLE WINSTON CHURCHILL,           
 
                                                            
 
 
                  PRIME MINISTER, LONDON.                   
 
                                                            
 
 
Both you and we are negotiating to exchange Japanese civilian 
      prisoners held by each of us for British and American civilians 
      held by Japan. The likelihood is that such an exchange may be 
      the only way of saving the lives of hundreds of your and our 
                            nationals.                      
 
                                                            
 
 
There is a snag on both sides. The Japanese want us to release 
      300 odd divers and pilots held in Australia; my military people 
      do not agree to their release and as a result your exchange negotiation 
                         has bogged down.                   
 
                                                            
 
 
In our exchange the snag is that the Japanese Government insists 
      that Japanese officials coming out shall not be searched, while 
      your people insist on search. The immediate case concerns officials 
      coming out of Argentina. In result our negotiations will bog 
      down when we inform the Japanese of this requirement. 
 
                                                            
 
 
It seems to me that the military considerations in either 
      case are now very small. Japanese officials cannot carry any 
      effective quantities even of valuable contraband. On the other 
      hand, our naval affairs in the Pacific are