Security 433. INDONESIA.

1. We are not entirely clear as to your immediate objectives. For
example in telegram 428 [1] you say you are endeavouring to
persuade Dutch to accept Indonesian suggestions on mediation, i.e.

by a number of Nations. At the same time you propose joint
Australian-United States mediation, i.e. by two States only.

2. As we see it there is a clear distinction between mediation and
arbitration and we are not sure whether your proposal for
Australian-United States mediation is for the purpose of-
(A) Supervising the Council's decision and seeing it is carried
into effect; or
(B) To make proposals for a long-term settlement after the cease-
fire arrangements have been effected.

3. It seems to us that our immediate objective, in view of the
conflicting and unconfirmed reports of violations, is to see that
the terms of the Council's decisions are faithfully observed.

4. It was to this end that you suggested a senior United Nations
official be sent out on the authority of the Secretary-General and
the President of the Council. It is clear, however, that the
Secretariat will not do this without a decision by the Council.

Lie does not return to New York until Friday.

5. The whole question will be discussed at a meeting on the
subject tomorrow when a reply from the Indonesian Government will
be before the Council. This telegram-
(A) Makes it clear that the decision of the Council has been put
into effect unconditionally.

(B) Asks Council to appoint representatives to supervise the
Council's decision.

(C) Expresses the opinion that the Council should further decide
that there should be a withdrawal of forces to the original
perimeters.

6. You will note that no question is raised of the ultimate
settlement or the United States offer of good offices. Romulo
will, whether invited to participate personally or not, submit to
the Council proposals similar to those contained in the Indonesian
telegram, though we have no indication as to his exact proposals.

7. To our mind a small commission or senior officer of small
commission of the Council or senior officer of Secretariat would
be quite appropriate to supervise observance of cease fire orders
and we feel we should therefore support Indonesian Government's
request (B). This would not in any way prejudice our plans for
joint U.S.-Australian arbitration or mediation for a long term
settlement.