United Kingdom High Commissioner has transmitted a message from
the Prime Minister to the Prime Minister in which he states he is
concerned at reports that Hodgson has been suggesting that the
Egyptian dispute [1] should be referred to the Court. [2]
Hodgson's own instructions, which have been confirmed, are to act
in close consultation with the United Kingdom delegate on this
matter. [3]

2. At the same time, we should be able to expect United Kingdom
Delegate to act in consultation with Hodgson on the Indonesian
matter. On Tuesday, Hodgson will introduce a resolution suggesting
Australian-American arbitration and a small commission of two or
three to observe the carrying out of the 'cease fire' order and
any determinations resulting from arbitration. [4]

3. The alternatives are greatly to be feared. Indonesians will not
accept single mediation and will insist on arbitration by a broad
commission. This would be completely unacceptable to the Dutch.

There will be deadlock, and the matter will be referred back to
the Security Council where merits will be discussed. Please
discuss fully and at the highest possible level this whole
question, with a view to ensuring United Kingdom support at
subsequent meetings of the Security Council in spite of their
abstention at the original stage.