Cablegram K148 BATAVIA, 24 July 1948
SECRET
Committee's reports on Trade Restrictions [1] and on postponement
of negotiations [2] will give the Republic as good an opportunity
as it is likely to have of taking a firm line in the Security
Council and dramatising the present situation.
Many Republicans now regard prospect of peaceful solution as most
unlikely and the Republic may therefore endeavour to submit
Australian/U.S. proposals [3] to the Security Council. It seems
clear that only some intervention by the Council can prevent a
further serious deterioration in the situation.
[AA:A4357/2, 48/254, v]