Many thanks your 267 [1] which was most useful. My immediately
following telegram [2] contains text of statement [3] made by the
Prime Minister. We are concerned at the way in which the situation
is drifting and particularly the complete absence of
acknowledgment from the Indonesians of the actions of this
Government. This statement is an attempt to divert attention from
the eleven-power proposal [4], which has all kinds of political
complications, and to focus attention on what would appear to us
to be a practicable proposition which should be acceptable to both
parties. You should indicate to Dutch authorities that they should
either accept a proposition such as we have outlined or they will
be faced with a choice of accepting the Indonesian proposition of
a number of parties or a return of the matter to the Security
Council. They may not feel favourably disposed towards Australia,
but they may be inclined to accept the lesser of the two evils.