Reference 1079 from Washington [1] reporting State Department is
against mediation and arbitration, we have just learned of Dutch
offer to meet Republican and other representatives at round table
conference to work out United States of Indonesia. [2]

It would be unwise to oppose what might appear to be Dutch move to
reach peaceful settlement even though Dutch proposals cannot
reasonably be justified as fair and just. Best approach and one
which also answers State Department is to point out necessity for
Indonesian agreement with any proposals put forward they being one
party to the dispute.

The suggestion that Dutch Government will invite some neutrals to
observe cease fire (paragraph 3c Washington 1079) is ridiculous
unless agreed to by Indonesia who no doubt will insist in taking
part in the nomination of Neutral Governments.

We have shown up emptiness of American offer and forced Dutch to
make conciliatory move. What is necessary now is to maintain
Security Council decision, the authority and jurisdiction of the
Council and point out Indonesian full rights as one party to
determine peaceful means of settlement of dispute.

Your 747 [3] just received. This seems an empty resolution as
compared with original move for arbitration. [4] You should
therefore see how debate goes with a view to taking opportunity of
putting forward previous proposals for arbitration by small group
and also for group of observers. [5]

Your 746 [6] just received. It is too early for Sjahrir or
ourselves to weaken under American pressure and absence of
instruction from his Government can only be interpreted as
implying no change in their policy which is insistence on
arbitration. Delay for Foote's report cannot be justified.

Moreover Foote's failure to invite Australian representative
equally concerned in this matter to accompany him to Djokjakarta
means that American reports of Indonesian attitude have no
validity based on confirmation by a third party.

Sjahrir will require encouragement at this stage and it would be
unwise for us to move from position we have already adopted and
which Indonesians have already accepted.