I have received your message regarding appointment Macmahon Ball
to the Netherlands East Indies. [1] Fully appreciate that Cabinet
appointed Peterson as Trade Commissioner [2] and of course have no
desire to interfere with that decision. Since appointment however
there have been many developments in Batavia and the situation has
worsened somewhat. Whilst we previously wished Peterson to take up
duties immediately we now consider it would be safer for him to
wait in Australia, for the following reasons.

2. The U.K. Government has requested us by top secret most
immediate telegram not to appoint a consular representative. [3]
It seems that they are endeavouring to guide events in such a way
as to produce a modified form of administration. For that reason
they apparently do not want appointments made to the Dutch which
would be regarded by other groups as evidence of an intention to
recognise or re-establish the pre-war Dutch regime. Moreover
recent reports indicate that persons formerly accredited to the
Dutch might be in some personal danger at any rate outside
Batavia.

3. In view of these facts I therefore propose sending Macmahon
Ball immediately as a political representative with SEAC
accompanied by appropriate staff. He could be later appointed
Consul-General if necessary but in any case his appointment would
not be for more than a few months when the position will be re-
examined.

4. None of these arrangements need interfere with Peterson's
appointment as Trade Commissioner but I must say that Peterson has
never been considered by me for the position of Consul-General.

You will recall that Gorman [4] was appointed before the war with
the equivalent of Ministerial rank and he was to have a trade
representative on his staff. The post is of great importance and
the Government I feel should appoint a man of similar rank.

5. I have been in touch with Mr. Scully again and he concurs in my
proposals, and I understand is communicating with you to this
effect.