I refer to your teleprinter message No. 730 dated 10th November,
1947, which concerns the Indonesian request for landing rights in
Australia. [1] In reply, I wish to say that provided it is
established that the Indonesian aircraft could comply with the
safety requirements, this Department [2] would be willing to grant
such rights under the terms of a bilateral agreement for
reciprocal air transport services. This raises two questions of
higher policy on which your advice is sought. In the first place,
does the Australian Government recognise that the Republican
Government of Indonesia exercises sovereignty over matters
external to her territory, and secondly, is the Australian
Government willing to negotiate, at this stage, with the
Republican Government? It may be appropriate, here, to say that a
draft proposal for the establishment of services between the
Netherlands, the Netherlands East Indies and Australia will
shortly be for-warded to you with the request that it be presented
to the Dutch authorities for consideration, together with our
notice of termination of the existing arrangement.

2. It may be appropriate, also, to raise two other matters
pertinent to Australia's relations with Indonesia. Firstly, I
refer to my memorandum 192/101/4050, dated 1st July, 1947, which
related to informal discussions with Dr. USMAN concerning his
proposal that an Australian Airline company be formed in
Australia, to operate between Indonesia and Australia. [3] It will
be remembered that your advice was sought on the position of the
Indonesian Republic, pending the official approach which was then
expected. No reply has been received in this connection and,
presumably, the official approach has not been made. However, this
Department would not wish to lose sight of such a favourable
opportunity, and, dependent on the attitude adopted by the
Australian Government towards Indonesia, the subject might again
be raised with Dr. USMAN should a suitable opportunity arise.

3. Secondly, I refer, for your attention, the following text of a
letter dated 28th October, 1947, received from Australia's Civil
Aviation Representative in London:

'A letter has been received by the High Commissioner from Dr.

Soebandrio, Representative in Britain of the Republic of
Indonesia, stating that it is the Republic's wish to take up
membership of I.C.A.O. [4] I have advised the Representative that
full particulars may be obtained from I.C.A.O., Montreal.

The Representative also enquires whether Australia would be
agreeable to sponsoring his Republic for membership, and on this
point I would be pleased to receive your advice.'

In this connection, you will be aware that Australia strongly
supports the aim of the International Civil Aviation Organization
to achieve the widest possible membership. However, the request
for Australian sponsorship again raises the general question of
the Australian attitude towards Indonesia, and, here again, your
advice is sought.

4. It will be seen that guidance is necessary on the overall
policy of Australia in regard to Indonesia, before this Department
is able to deal satisfactorily with the questions raised in this
memorandum, and it is requested that an early reply may be
forthcoming.