AUSTRALIAN-DUTCH RELATIONS

The attached paper [1] deals at length with the recent adverse
drift in Australian-Dutch relations.

The position in very brief summary is-
(a) the trend probably started with the Australian Government
decision not to admit Dutch troops to Australia for training (this
was before the end of the war and before any Indonesian problem
developed),
(b) in subsequent matters, e.g., repatriation of Indonesians held
in Australia, shipment of relief supplies, etc., the Dutch have
not been very co-operative and most of the moves have been from
the Commonwealth,
(c) although the Commonwealth has refrained from giving statements
to the press while we have been endeavouring to negotiate for
shipment of relief supplies, various Dutch officials have given
press statements seeking to throw all the blame on to the
Australian Unions and inferentially on to the Australian
Government for not controlling the Unions,
(d) other press comment has appeared which, although not directly
attributed to the Dutch Authorities has the appearance of being
provided by them.

The Dutch are obviously bewildered by the rapid march of events in
N.E.I. They had a country, lost it to the Japs and just as they
looked like re-occupying it Indonesian difficulty prevented them.

They do not seem to be able to understand why former friends are
not fully and openly supporting them against what they regard as
an Indonesian 'revolt'.

The Dutch try to apply pressure through the business community by
crying 'damage to future trade'. I think undoubtedly some damage
will result if they again become masters in N.E.I. On the other
hand their goodwill would never have extended to purchasing goods
in Australia which could be obtained more cheaply elsewhere.

I suggest the line with the Netherlands Minister should be-
(a) that we take a serious view of the public statements by Dutch
officials which are inferentially critical of the Government,
(b) that while we are desirous of continuing friendly relations,
they can only be maintained if the Dutch co-operate.

I suggest further that you should keep the discussion on general
lines and not be led into discussion on particular cases. [2]

(W. E. DUNK)