INDONESIA

1. Soemitro, Republican Representative in United States was
reported to have stated yesterday that Nehru had invited the
Republic to set up a Government-in-exile in India if necessary.

According to the press Soemitro expressed fear that war would
break out within a few weeks as a result of unilateral action of
the Dutch in breaking off negotiations. The Republic would buy
arms and ammunition and enlist support of the peoples of India,
Pakistan, Burma, Malaya, Australia and New Zealand. The United
States could help by cutting off Marshall Aid.

2. Soemitro has today written to Indian Embassy apologizing for
report which he said was 'based on misunderstanding'. Indians
advise that possibility of Republican Government moving to India
in emergency has been considered but no invitation has been
issued. India is urging United States to use influence to restrain
Dutch from taking irrevocable action before Security Council can
consider GOC report. [1]

3. We saw Soemitro, today shortly after he had learned of Hatta's
letter. [2] He seemed considerably heartened by the move and
commented 'we can now postpone plans to declare our independence
and to live as best we can'.