Please see No.181 to Secretary of State for Commonwealth Relations
regarding position in Indonesia. [1]

1. Our reports from Ballard and confirmed from Secretary of State
lead us to believe that United Kingdom Government policy is to
restrain Dutch from using force, but, at the same time, to
persuade Republican authorities to do the compromising in order to
reach agreement. This policy is, no doubt, dictated by Anglo-Dutch
relations in respect to European interests. Such a policy
completely disregards our own vital interests for the effect has
been to encourage the Dutch into believing that in crisis they
will receive United States and United Kingdom support. The result
seems to have been that, while Indonesians compromised to the
extent required to make agreement possible, Dutch were encouraged
and have again become provocative and uncompromising. It would be
appreciated if you would follow up telegram No.181. In doing SO,
it would be interesting to know in what way Lord Killearn is
regarded. We have discussed this matter with him on two occasions
and he appears to have a good understanding of both parties and,
to some degree, the confidence of both parties. He has personally
a great respect for Republican leaders, whom he has found most
willing to help. We would like to see him used again, rather than
British representatives who have been approaching Indonesians, but
it may be that Killearn is regarded as being too sympathetic with
Indonesians. He at least is fully alive to Australian interests in
this matter, while the present British representatives at Batavia
seem to have little conception of any policy except that of
maintaining close relations between the United Kingdom and The
Hague authorities.