CANBERRA, 12 June 146, 8.30 a.m.

Cablegram A39

TOP SECRET PERSONAL

Batavia. Reference our telegram A36. [1]

1. Brookes has arrived in Canberra where he will stay few days
before going on recuperative leave. He brought with him personal
letter from Sjahrir and Sjahrir's draft counter proposals which
have been repeated to you in our telegrams Nos. A37 and A38.

2. Sjahrir's letter read in light of Kirby's comments in paragraph
one of his telegram 114 make it appear that Indonesian Government
is making informal sounding as to readiness of Australian
Government, if negotiations between Dutch and Indonesians fail, to
take initiative in raising Indonesian question in Security
Council. In considering what action should be taken in this
connection it is pointed out that conversations with Brookes make
it clear that United Kingdom Government, through MacKereth, is
already aware of substance of Sjahrir's letter and that leakages
in Batavia have resulted in Dutch becoming aware of suspicions
that they (Dutch) may possibly be implicated in some way in murder
of the three Australians. It is suggested that following action be
taken re Sjahrir's letter.

(a) That Brookes be authorized request Kirby give to Sjahrir
verbal personal message stating that Brookes has discussed
informally in Canberra matter raised by Sjahrir. Brookes has found
in Canberra much sympathy for aspirations of Indonesians towards
self-government and strong hopes that peaceful settlement between
Dutch and Indonesians can be brought about at earliest possible
moment. It is not felt that present time is appropriate for
approach by Australia to Security Council both because difficult
unsolved problems are already before Council and also because
negotiations between Dutch and Indonesians are still in train.

Australia, however, is deeply interested in progress of these
negotiations and will do everything possible to help to bring them
to successful conclusion.

(b) That United Kingdom Government be informed officially of
Sjahrir's letter and of substance of Brookes' reply. In addition
United Kingdom Government might be urged to take every opportunity
of making it clear to Dutch that they should do their utmost to
reach agreed solution with Indonesians at same time they might
point out lamentable consequences which may arise if negotiations
fail, and refer to probability that matter will by one means or
another be brought before Security Council should negotiations
break down.

3. As regards murders of the three Australians [2], it is
suggested that trial by Military Court is only satisfactory
solution. If Kirby assents to trial by Indonesian Court this may
amount to tacit recognition of Sjahrir Government. On other hand
trial by Dutch Court would be most unsatisfactory in view of
doubts which have been raised as to Dutch complicity. Moreover it
is assumed that Sjahrir is most unlikely to hand over accused for
trial by Dutch.

4. In view of contents of Kirby's 117 [3] it may be difficult to
secure trial by Military Court. It is suggested however, that
telegram might be sent to United Kingdom Government asking that
effort be made to secure Dutch assent to this course. it could be
pointed out to Dutch that alternative to trial by Military Court
is likely to be trial by Indonesian Court with or without
Australian assent and it could be argued that Dutch interests
would be better served by their agreeing to trial by Military
Court. Precedent of trial by Military Courts in Sourabaya could be
invoked.

5. As regards Kirby's suggestion that he should return quickly to
Australia to give full background information we have informed him
that we are in touch with you and would prefer him to remain in
Batavia pending receipt your views. In meantime, we have arranged
for Detective MacDermott to leave for Batavia on 16 June and hope
to arrange for typist and assistant, for whom Kirby also asked, to
leave Australia shortly. After discussions in Sydney, Burton
advises that he has arranged for Brennan [4] to act as Kirby's
assistant. This still leaves open, however, question of permanent
representation in Batavia regarding which separate cable will be
sent.