Your UN527. [1] Indonesia.

1. Van Kleffens' appeal to Council to leave both parties and
Committee to negotiate and not to distract them by discussions at
Lake Success is of course in line with Netherlands plans and
appears to represent an important point in their strategy at the
present time. Reports from Batavia suggest that they are now
trying to ignore the Good Offices Committee and delay all
negotiations with and through it, and meanwhile to carry on direct
and private discussions with the Republic.

2. Little objection could be offered to this if there were any
prospect that the Dutch would show themselves prepared to consider
the Republican desires in a reasonable spirit. All evidence
suggests, however, that their purpose is to force the Republic to
accept Netherlands conditions as they stand while holding over
them the possible threat of another police action. This last
possibility is giving the Republicans some concern but as they do
not appear to be weakening in their resolve to join the United
States of Indonesia on something like their own terms, there is
still no prospect of an early settlement.

3. It was with the object of short-circuiting outstanding points
of difference between the parties, notably in relation to the
plebiscite, and thereby clearing the way for the early
establishment of the Federation that the Australian and United
States members of the Committee drew up series of proposals to be
handed to both parties. Since the Belgian member of the Committee
would not agree to the presentation of proposals as being outside
the function of the Committee, the Australian-United States plan
[2] was presented informally to both parties as working paper. The
Republican Delegation has unofficially accepted the plan in
principle, but the Dutch have now replied that they cannot 'see
their way to take the paper into consideration', and have again
insisted that neither the Committee nor individual members of the
Committee should make pronouncements except at the request of both
parties.

4. If this represents a firm Dutch refusal to accept or even to
consider the Australian-United States working paper, we shall
expect that full report will be made to the Security Council by
Australian and United States members jointly, even if Belgian
member objects. Such report taken in conjunction with Committee's
previous reports, should serve to show that there can be little
prospect of satisfactory solution in Indonesia until the Good
Offices Committee has authority to make positive proposals to both
parties and if necessary publish them.

5. The foregoing is mainly for your background information. As we
do not know what recent information from the Committee the Council
will have before it at Thursday's meeting, it may be premature to
refer in specific terms to the Dutch rejection of Australian-
United States proposals. You should, however, take advantage of
any suitable opening to reiterate in general terms our concern at
slow progress of negotiations, our fears regarding Dutch tactics,
and our belief that Council should increase the Committee's
authority. Above all you should resist any move to adjourn
discussions indefinitely.

6. It is most important to keep in touch with United States
representative because of their recent actions in Committee of
Good Offices. It would appear that State Department is getting
tired of Dutch tactics and you should take full advantage of this
and if possible act together.