Draft Cablegram E104 [1] CANBERRA, 8 December 1948

SECRET PERSONAL

We have always maintained there could be no solution to Indonesian
problem unless United Kingdom was prepared to press Dutch
acceptance of reasonable proposals. We have frequently been
informed that United Kingdom has pressed Dutch. The instruction to
the United Kingdom delegation at Lapstone was not to vote against
Dutch or India and Pakistan and this confirms what we have always
said was the case, that is while there might be pressure Dutch are
encouraged to believe that when they are put on the spot before
the Security Council or elsewhere United Kingdom will help them.

In the present circumstance United Kingdom policy cannot be
justified if matter comes to public attention. Dutch are insisting
on disbandment of Republican Army while maintaining strong Dutch
army prior to political settlement. This demand is on all fours
with police action as it aims to leave Republic without last hope
of self-defence. Meanwhile 35 million persons are being blockaded
and deprived of goods essential to life.

It is commonly reported now that failure of Good Offices Committee
is due to United States and United Kingdom refusal to do more than
urge the Dutch and to take any overt action such as voting. We
have endeavoured up to date to avoid embarrassment to western
countries but stage is reached when we cannot afford in relation
to other countries in the area to allow matter to drift further.

Troops are being increased in Batavia and there are no signs of
any real intention on the part of the Dutch to come to a
reasonable settlement.

I think it would be most helpful if at this critical stage you
could once again impress upon United Kingdom and U.S.A. the way
Indonesian situation is drifting. Moreover, it is most irritating
to find that Australia's vital interests in a rapidly changing
South East Asia do not appear to be receiving the same active
consideration which we ourselves at all times have given the
particular problems which the United Kingdom Government faces in
Europe. The Lapstone instruction which places good relations with
the Dutch above good relations with four British Dominions who are
unanimous amongst themselves and who are vitally concerned in the
matter is hardly conducive to British Commonwealth co-operation.