103 Burton to Department of External Affairs

Cablegram 37 NEW DELHI, 18 January 1949, 12.50 a.m.

MOST IMMEDIATE SECRET

Your 23 repeated to New York 26. [1]

The fact is negotiations broke down twice at the same point and on the basis of the United States Resolution [2] they will again break down in about 1 year leading to further use of force as there will be no agreement on the fundamental issue. Only solution is to place settlement in the hands of Third Party such as G.O.C.

In the meantime the Republic should be restored and the G.O.C.

must supervise exercise by the Dutch of their powers in so far as they affect the Republic e.g. foreign trade embargo, foreign representation, use of police and forces. Alternatively terms of settlement to be worked out by elected Constituent Assembly and in the meantime the G.O.C. acting as above to ensure justice in the interim period.

1 Cablegram 100.

2 Document 86.

[AA : A1838, 401/3/1/1, vi]