[matter omitted] [1]

3. I took occasion to raise the whole question of the Pacific and
South East Asia because for some considerable time, along with the
Marshall policy the trend has been to concentrate almost solely on
Europe. I told them our position in the Pacific and South East
Asia compelled us to take up every opportunity of friendly
relations with the Philippines, Siam and even Burma as well as
India, Pakistan and Ceylon. Our attitude on Indonesia had been
consistent and the Dutch were making the very serious mistake of
supposing that, although India and other Nations attained
independence as a result of the Labour Party's policy, the same
result could be avoided in Indonesia. Here again we see their
concentration on Europe. It is only because of the important
position of the Netherlands in European economy that in the last
resort the Dutch feel there will be no objection if, in the end,
they get very tough with the Indonesians.

4. Finally we agreed on the desirability of regional conferences
covering South East Asia and they agreed generally that the best
way to handle Communist infiltration was by encouraging
progressive and democratic teams wherever possible and of course
of improving the wretchedly low standards of existence. Nothing
finally was agreed on as to conference but my idea is very much on
the lines I have frequently referred to in past statements.

5. Re Indonesia, I think our attitude should be unchanged. At the
Security Council we should try to insist on the continuance of the
truce and on readiness to carry out plans of the Good Offices
Committee.

[matter omitted]