REPORTED PROJECTED TRADING COMPANY TO REPRESENT THE INDONESIAN
REPUBLICAN GOVERNMENT, IN AUSTRALIA

The attached Most Secret report received from Sydney Office is
forwarded for your perusal and suggested reference, through you,
to the Department of External Affairs and the Department of
Commerce and Agriculture. [1]

Any further information received will be at once forwarded for
your information.

Attachment

SYDNEY, 5 May 1947

I have been informed from a most reliable source that following
the recent announcement over the Djokjakarta radio by Mr. C. [H].

Campbell regarding representatives of a Trade Union Conference in
the N.E.I. [2], that certain developments are now being considered
and negotiations conducted by Campbell and members of the
Indonesian Republican Government to form an Indonesian Trading
Company in Australia. My information indicates that Campbell, in
conjunction with Sjahrir, Hatta (called Hutta), with the
possibility of Soekarno being involved, have agreed on the
formation of a Trading Company to exploit the trade of Australia.

it would appear that a company will be registered, probably in
Singapore, with a capital, it is suggested, of between 10-
20,000,000 guilders and that such capital will be provided by the
Indonesian Republican Government through the Java Bank; that this
company will grant to Campbell the exclusive rights of trade in
Australia for the Republican Government.

It is said that the Australian representative of the Company will
form a Company to be registered as the Australian Company with
capital in a foreign country and that the Directors will consist
of Campbell, [M]. Healy of the Waterside Workers Federation in
Brisbane, E. Thornton of the Ironworkers Federation, and J. J.

Brown of the Victorian Australian Railways Union. [3] It will be
remembered in this connection, that these persons were mentioned
by Campbell in a previous broadcast, as the representatives of
Australian Trade Unions at the Trade Union Conference to be held
in Java.

I understand that it is proposed that all requirements for the
Republic of Indonesia will be purchased from this Australian
Company and the trader to trader business will be discouraged by
various import restrictions to be imposed by the Republican
Government. Exporters desiring to export to Australia from
Indonesia will receive permits only if they are trading with this
Australian Company representing the Indonesian Republican
Government. I am further informed that the reason that the embargo
on the shipping from Australia to the N.E.I. has not been lifted
is that the informed persons in Australia are awaiting
finalisation of the formation of this Company and that, as soon as
it is formed, a request from the Indonesian Republic will be made
to the Waterside Workers to lift the embargo on Dutch shipping and
this will be acceded to.

It is said that any Dutch or other national in Indonesia
endeavouring to obtain an import permit for goods from Australia
will meet with obstruction from the Republican Government, but,
should any import licence be obtained, such information will be
passed to Australia when the Company being formed by Campbell and
others will take such steps to see that any cargoes covering these
imports do not get loaded, whilst at the same time, cargoes from
the Indonesian Republican Company will be handled with care and
alacrity.

On the financial side, it is proposed that there should be a
division of profits between the principal members of both the
Indonesian and Australian Companies and that a percentage of the
profits will be utilised for propaganda purposes on behalf of the
Indonesian Republican Government.

It is further stated that the charter of certain freight-carrying
'planes or flying boats to pick up goods immediately the ban is
lifted, has already been obtained and that such flying boats or
'planes will move any medical or similar goods lying in Australia
awaiting shipment, the idea behind it being that an appeal from
the N.E.I. Red Cross for urgently needed supplies will be made and
they will request the N.E.I. authorities in Australia to release
these stores. A condition will be laid down that the supplies
shall not be handled by Dutch personnel on arrival in the N.E.I.,
but shall be handed to the Republican Government for distribution
and used exclusively for the benefit of Indonesians.

It is expected that large profits will be realised from this and I
am informed that it is not intended to distribute such medical
stores etc. freely but to dispose of them sparingly.

It would appear from the foregoing that a very serious effort is
being made to exploit the Australia-Indonesia situation to the
detriment of Australian free traders but it is difficult to assess
at the moment what the ultimate result will be.

Further inquiries indicate that the aircraft to be used has
already been formed into a Company called the Singapore Air
Traders, whose Office and agency in Australia is Bruce & Tobin, 25
Rowe Street, Sydney. I understand that the person in charge of the
Singapore Air Traders in Australia, who is at present in Sydney
and, I believe, endeavouring to purchase flying boats of the
Catalina type, is one named BURGOYNE, who was a member of Lord
Killearn's staff in the N.E.I.

This information has just been given to me and a further report
will be forwarded when inquiries, which I propose instituting, are
completed. This confirms my telephone conversation of even date.

F. G. GALLEGHAN
Deputy Director
Commonwealth Investigation Service