159 Embassy in Washington to Department of External Affairs

Cablegram 979 WASHINGTON, 24 July 1947, 9.15 p.m.

MOST IMMEDIATE

British Minister today received instructions to propose to the United States Secretary of State joint Anglo-American arbitration in Indonesia. Balfour was unable to see Marshall but saw Lovett who was definitely discouraging. Lovett said he visualised three possible courses.

(a) Anglo-American intervention to secure a truce as a result of which some peaceful solution might be devised.

(b) Reference of dispute to the United Nations.

(c) An Anglo-American offer of arbitration.

He was of opinion that (a) and (c) would not be acceptable to the Dutch. He made it clear that Dutch had already indicated to State Department that they regarded present Dutch action in Indonesia as an internal matter and would therefore resent either arbitration or an attempt to arrange a truce. Lovett promised to study British suggestion but held out little hope that it would be acceptable to US Government.

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