INDONESIA

Since sending our 284 [1] we have learned from radio reports that
United StatesAustralian proposal [2] has been made public,
together with the fact that Dutch have refused to consider it.

Dutch are reported to have declined to continue discussions for
the time being, and all negotiations have accordingly come to
standstill.

2. In absence of official report it is not clear how proposal
became public. Nor do we yet know its precise nature, though we
believe it would offer sound basis for settlement. Main thing is
that Security Council should study it as soon as possible in the
light of Dutch rejections. Text of proposal may be already in
hands of Secretariat. You should propose to-day that Council call
for full text and for immediate report from Committee of Good
Offices. You should also try to ensure that Council meets within
next few days to consider latest developments.

3. United States representative will be closely concerned,
especially since the proposal rejected by the Dutch, even though
initiated by Critchley, has been adopted by the Americans as their
own.