Your telegram 260. [1]

The proposal for arbitration in Indonesia in part arises from
Article 17(2) of Linggadjati Agreement. [2] Dutch maintain that
article did not contemplate arbitration in circumstances like
present but legal advisers of United Kingdom Government are
satisfied that it is applicable. Bevin thinks that arbitration
should be quite formal and that no ordinary mediation such as was
successful from time to time before is likely to succeed now that
hostilities have broken out. Bevin saw United States Ambassador
last night (23rd July) and United Kingdom Charge d'Affaires
Washington has been instructed to see Secretary of State urgently
for same purpose. India is not actually a party to approach to
United States.

2. Your paragraph 2. It is view of present Provisional Indian
Government (Pakistan will not be separated until August 15th).

Bevin saw Menon (Personal Representative of Nehru) on 23rd July
and latter said India was concerned about situation and was
prepared to assist in any way possible. Bevin outlined his
proposal to approach the United States and Menon did not demur.

3. Arrangements which have been operative for supply of military
equipment and training assistance to Dutch troops by United
Kingdom Government are being considered in light of Dutch action.

I understand C.R.O. [3] will telegraph any decision when made. [4]

4. Embassy at Washington has been asked to report direct to you on
United States reactions to Arbitration proposal.