Your UN549. [1] Indonesia.

Critchley reports from Batavia that United States Delegation, 'to
its great regret' has received precise instructions from State
Department that United States-Australia Working Paper is not to be
submitted to the Security Council. Inference is that United States
has decided to go slow on Indonesia for the present possibly out
of deference to Netherlands Government's anxiety regarding its
election prospects. It therefore seems unlikely that Good Offices
Committee's reply to Security Council request for report on
breakdown of negotiations will provide very much material for
bringing pressure to bear on the Dutch. Position is further
affected by the fact that the Dutch have agreed to continue
negotiations.

2. When Security Council discussion is resumed on Wednesday, you
will necessarily have to be guided to some extent by
circumstances. Nevertheless, since the general nature of the
United States-Australian plan has now become public, there seems
no reason why it should not be discussed in the Council. We have
now received full text of the plan, an outline of which is
contained in our immediately following telegram. [2] Full text is
being sent airmail. (Understand State Department will by now have
received it by cable from Batavia). After studying it carefully,
we consider that, while some points are no doubt unacceptable to
the Dutch in their present form, the plan as a whole contains
little that is at variance with the professed objectives of both
parties and could provide a sound basis for settlement.

3. In making these points to the Council, you should emphasise
that six months have now passed since the signing of the Renville
Agreement, that a settlement is still not in sight, that the
Republican Government has accepted the Working Paper in principle
as a basis for discussion, and that the Netherlands authorities
for their part, while rejecting the Working Paper outright, have
at no time put forward a comprehensive plan of their own. The onus
accordingly rests with the Netherlands to reveal its plans to give
effect to its undertaking to set up a sovereign Indonesia within a
reasonable period of time and on a basis of full justice to the
Republic.

4. It is probable that there will now be increasing pressure to
adjourn discussion of Indonesia indefinitely. This should be
strongly resisted; the Council should keep the situation under
constant surveillance during next few weeks which may be crucial.

Understand Committee's Third Interim Report [3] will be available
to the Council shortly.