Van Holst Pellekaan called today stating that he had been sent
from Batavia because of doubts in the minds of Dutch authorities
arising from comments made by the Waterside Workers as to whether
in fact the Dutch ship, if sent, would be loaded. He was informed
that we took objection to this reflection on the assurance which
the Government had given the Dutch authorities and that if there
was any difficulty in loading, Dutch authorities would be entirely
to blame as a result: (a) of the delay which has taken place in
sending a ship, and (b) the unnecessarily provocative action in
arranging to load army equipment before civilian supplies. He was
given to understand that we could not go on tolerating the
presence of Dutch service personnel in Australia and the loading
of military Supplies. [1] Moreover, the press comments accusing
Waterside Workers of not carrying out their undertakings,
obviously emanating from Dutch sources, could only be regarded as
provocative and Waterside Workers at least were entertaining
doubts as to whether the Dutch in fact wanted to ship civilian
goods, a high proportion of which was to go to Indonesians.

2. He asked for an assurance that if a ship were sent immediately
it would be loaded. He was given the reply that that assurance has
already been given. He stated that no conditions could be imposed
such as type of goods to be shipped and their destination. He was
told that while the Government was not a direct party to the
Dutch-Indonesian arrangement, we had, having originated the
arrangement, a moral obligation to ensure that it was carried out
by both parties. For that reason, while the Waterside Workers
would impose no conditions, the Australian Government had to be
assured that both parties carried out their undertakings. He
maintained that all goods could be shipped in the first instance
to Batavia and allocated to Indonesia from there and that this
decision was entirely within the jurisdiction of the Dutch. He was
told that (a) we would have to be satisfied that the other party
to the arrangement agreed with this, and (b) that from the point
of view of tactics, the Dutch would be well advised to load an
adequate proportion of goods for Indonesia and to off-load at
Indonesian ports. He agreed and stated that that was the present
plan.

3. He has stated that he will report that the assurance previously
given is confirmed and urge the despatch of a ship immediately.

4. On the question of shipping in Australian bottoms from
Indonesian ports, he states there is no objection to this but that
we will be disappointed in the quantities available. He maintains
that there is no sisal which is not produced on estates. He was
informed that we would probably arrange for a shipment from
Indonesian ports as even though there were only small quantities
such a shipment would assist in the recommencement of trade.