We talked to Gani yesterday evening. He had, meanwhile, learned
Sjahrir's views reported in my telegram 124. [1] He had also been
in touch with Van Hoogstraten and said that the latter was
agreeable to a joint discussion with us. This has been arranged
for this evening, Saturday.

2. Gani is confident of an arrangement by which two-thirds of the
Dutch-owned goods in Australia will be transported to Cheribon in
non-Dutch shipping under charter to the Republic, one-third to
Batavia in Dutch shipping. If this is agreed a joint Dutch-
Indonesian telegram would be sent to the Australian Government
requesting all efforts to get ships loaded.

3. Talks with the Dutch, however, make us much less optimistic
than Gani of the acceptance of this in entirety especially as
regards entry of non-Dutch ships to ports closed to the Dutch.

4. With reference to my telegram 124, paragraph 2, the joint
official message would possibly suffice to get the shipping ban
lifted as it would be published and also probably otherwise known
to the Waterside Workers. If it seems necessary we will pursue the
possibility of an unofficial appeal to them by Republican
authorities to follow the official cable. Glad of confirmation of
this procedure.

5. In the event of the successful outcome of talk[s] along the
lines of paragraph (1) and (2) above, would you want simultaneous
publication arranged?
6. We are aware that the proposals above do not cover the whole
assignment but our assessment of the position here is that the
question of resumption of trade generally is better left until
shipping ban, at present on Dutch goods in Australia, is lifted.

Once ships begin moving we are hopeful of better atmosphere and
think movement of goods would tend to develop beyond present
limited objective in paragraph 2 above.

7. We will explore the possibility of agreement to exports going
out to Australia on return voyages of the particular ships
involved in the proposals above. This may be most difficult with
the possible exception of native produce (kapok and perhaps some
rubber) but we will try to persuade the Dutch to release some
estate produce (including sisal if possible) on blocked account
pending solution to Dutch-Indonesian impasse concerning proceeds
or on the lines of my telegram 118. [2]

8. We do not propose, however, to press aimlessly to the point of
seriously prejudicing the proposed arrangement in paragraph 2. If
ships could lift cargoes from say Singapore or Manila they would
not have to make return voyage to Australia empty.

9. You are aware that the question of resumption of Australian
trade generally with the whole of this area is only a small part
of the major issue of trade between this area and the world as a
whole (see also my telegram 123 [3], paragraph 2). This involves
settlement of Dutch-Indonesian dispute on proceeds and
administration. The Dutch want one pool for proceeds and single
administration both controlled jointly. The Indonesians want
separate arrangements in both cases, only high policy to be
determined jointly.