E.12.

Returned to Batavia 21st after visiting Palembang, Padang, Fort de
Kock and Medan areas. Position is similar to other areas except
that armed bands under Japanese are operating against both Dutch
and Indonesians in North Sumatra. As in other areas consider it
doubtful that Dutch with present available forces can maintain law
and order in territories within demarcation line except in
occupied towns and immediately adjacent areas. In all areas
clashes still continue.

2. Your telegram 273. [1] Saw Head Far Eastern Office this
morning. New Dutch policy will not be known here until Van Mook
returns tomorrow when your proposals which were favourably
received will be considered. It appears that a definite answer
will not be available until Wednesday 24th. This also applies to
suggestion of representation in Djokjakarta. They suggested that
Officer may be able to advise new policy. Dutch official attitude
friendly but inclined to be suspicious of Australia.

3. Your telegram 274. [2] Chairman had not submitted any reports
as decided in original procedure but at my suggestion at today's
meeting of Mission the following telegram was despatched. Begins:

Telegram to Security Council via United States State Department.

Following for Security Council from Consular Commission, Batavia.

[1] Although investigations cannot be regarded as complete until
reports can be received from all military observers, Commission
has unanimously reached certain definite and inevitable
conclusions, after visits by members to eleven different Dutch and
Indonesian controlled areas in Java and Sumatra since the
Commission began its work on September 1st. In view of the urgency
of the problem we think these should be transmitted to you without
delay and very concisely for your advance information.

(2) Advances by Netherlands troops between July 20th and August
4th were in the nature of spearheads and some fighting occurred.

While the main bodies of Republican troops in most areas
retreated, considerable numbers of Republican troops remained
between the spearheads in some areas and guerillas remained in all
areas. The Indonesian scorched earth policy and other
disturbances, including looting and heavy loss of life especially
of Chinese, were intensified between and behind the spearheads
during and after the Dutch advance. On August 29 the N.E.I.

Government declared its intention to 'complete restoration of law
and order and the complete disarmament and winding up of all armed
organizations' opposing N.E.I. authority within a demarcation line
covering Dutch advanced positions. [3] The Indonesians did not
accept the Dutch demarcation line. The Dutch line entailed patrol
and other activities which were regarded by the Indonesians as
hostile movements. Patrol clashes and sniping results therefrom
without diminution notwithstanding the cease fire order.

(3) We find that the cease fire order is not fully effective, and
that casualties and damage continue, and that this state of
affairs is due in the main to the situation described above. So
long as this situation continues it will be impossible to secure
anything like complete observance of the cease fire.

(4) We have so far been unable to discover any practical interim
measures which would secure a more effective observance of the
cease fire or reduce casualties.

(5) As the work of the Commission is not yet completed, it is
requested that these advance conclusions may be regarded as
confidential.

(6) Consular Mission hopes to complete written report on or about
September 30.

Ends.

4. Indonesian Government have now despatched formal advice to
Security Council regarding nomination Australia.

5. Have pressed for early completion of joint report. Mission
agrees and drafting commencing immediately. Do not consider it
necessary to visit further areas myself unless time permits.

Observer officers will remain in the field until at least 28th
September when their report will be submitted to Mission. Doubt if
report will be of additional value.