The Secretary of the Indonesian Department of External Affairs and
one of his colleagues called this morning and entered into a
discussion primarily of the foreign relations of the Republic if
the agreement goes through. They came spontaneously and spoke on
departmental level. They seemed rather to be thinking aloud and in
search of ideas.

2. It is quite apparent that the Republic wants to exchange agents
of some sort with other countries in the near future (they spoke
of overseas trade representation at least with Australia) but that
they are not clear as to how or how far they can do this when
recognised by the agreement as a de facto authority only.

3. The Dutch propose the setting up in about three months time of
an interim Government of the United States of Indonesia but the
Republic will probably not agree to this. In any event they seem
to contemplate Republic representation of some kind even after the
U.S.I. is established.

4. In particular they are quite clear that a foreign
representative received by the Netherlands Government would not,
without their assent, be in a position inter alia to protect his
Nationals in their territory.

5. The whole matter has not yet been considered by Cabinet. They
would be very receptive of any ideas you wish to have transmitted
at the proper time. Have you any instructions?