Indonesia. My telegram 676. [1]

1. Security Council discussion on 29th July [2] opened with
statement by Palar on economic report from the Committee of Good
Offices. [3] Palar also gave an explanation of the Republican
decision not to join for the time being in further negotiations in
Batavia. He said that the decision was understandable in that
there had been no sign of progress in negotiations in more than
two months and that negotiations would be resumed when the Dutch
had received new instructions permitting a reasonable basis for
further discussion. Van Kleffens in reply said that the Indonesian
action seemed to lack any basis. Negotiations were admittedly at a
standstill pending the formation of a new Dutch Government and the
arrival of the new American member of the Committee, but as stated
[4] the Cabinet was formed at The Hague and the American member
had had time to make his contacts with the Netherlands Government
and the Republican Government [5] the work of the Committee could
at once be resumed. He gave no indication however of any change in
the Netherlands attitude.

2. The ensuing discussion dealt mainly with the Chinese resolution
[6] which was introduced at an early stage. The economic report
was not commented on at length but private indications suggest
that it has made an impression on most members who think that it
exposes pretty clearly the deliberate intention of the Dutch to
weaken the Republican pos[ition].

3. The Chinese resolution had been discussed with India, Palar and
ourselves. In the circumstances the passage of the resolution is
more significant than its actual wording would seem to denote. The
Council is not yet ready for any positive step which would put
pressure specifically on the Dutch, especially in view of that
inevitable present standstill in negotiations, but the trend of
opinion against Dutch tactics which has been gradually taking form
was definitely marked yesterday and was implied in the very easy
acceptance of the resolution. Palar recognises that nothing more
could have been expected from the Council at the present and is
therefore satisfied with the resolution so far as it goes. India
and ourselves agree with this. The resolution means that the
Council has reasserted its active interest in seeing the
conclusion of a proper settlement and both the British and
Americans here think that the Dutch will find it hard in the face
of this to prolong the deliberate evasions and delays which both
recognise have taken place. The Americans say that they are
content to let matters alone now until say mid-September. If by
that time the Dutch have shown no sign of wanting to make real
progress at Batavia on the basis of Renville further action will
have to be considered. This is now broadly the attitude of the
United Kingdom Delegation although they say that the present
Foreign Office view is unknown to them.

4. In a short talk I had with Van Kleffens after the meeting he
said that he found the resolution acceptable and assured me with
apparent sincerity that the Dutch were now determined to make a
real effort to get a settlement.