IMMEDIATE

1. Thank you for your telegram K1. [1] I think the idea of the
Indonesian plea is very good from two points of view in
particular:

(a) Situation described in your paragraph 5 can only be regarded
as warfare. When the plea reaches the Committee one of the steps
taken in response to it would be to decide that the present
economic tactics of the Dutch was a matter within the jurisdiction
of the Cease Fire Commission.

(b) I would think too that the plea could open up the way for
proposals to recommence trade. For example, the Indonesian-Dutch
agreement over Dutch
owned goods in Australia [2] could be re-implemented and, if
possible, retrospectively, so that trucks already despatched could
be used to take food to the Republicans as well as to Indonesians
under Dutch control as was originally planned. Glad of your
comment on practicability of this.

2. It is important to have discussed [in the] Committee the
economic warfare of the Dutch and also the general problem of
economic arrangements so that these matters can be included in the
report to the Security Council.

3. I would think that Republicans would have nothing to lose by
taking initiative in pleading for justice rather than waiting to
use same arguments defensively against Dutch claims to support of
local populations. Whether or not Republicans act along lines
suggested I think Committee should be prepared to report matter
back to Security Council.

4. As regards question of Republican undertaking to cease fire and
stand fast pending Security Council action on reference to it of
cease fire and humanitarian plea, I can understand Republican
misgivings at having to give such undertaking, but I do not feel
that in practice they can lose much by giving it and in any event
the overriding consideration at the present time is to get the
substantive discussions going.

5. My own view is that while the fact of the Committee forces the
Dutch hand it is probably a mistake to allow events to take their
course without keeping on the pressure at other points. The first
move before reference to the Security Council might be for us to
share our fears with the United States and United Kingdom. Would
be glad of your comments.