125 Moodie to Burton

Minute CANBERRA, 1 February 1949

The attached appreciation [1] is the final form of the document
which was considered in the Joint Intelligence Committee last
November and subsequently discussed with the Joint Planning
Committee. Certain amendments have been made.

The main points appear on pages 2 and 3 [2] from which will be
gathered the considerable divergence from the approach in our
Appreciation. [3] The relevant reference is paragraph 29 [4] on
page 6 referring to Chinese populations in South East Asian
countries.

The statement regarding Indonesia in paragraph 39 [5], page 8, is
reasonable but its condensation in paragraph 6, page 2, means very
little.

In accordance with your instructions I took no part in the
preparation or discussion of this document. [6]

This document will no doubt be considered by the Defence Committee
and will ultimately go before the Council for Defence. The
Appreciation prepared by this Department will presumably be dealt
with in the same way in the Defence Department. I understand from
enquiries in Melbourne that it has been considered by the Joint
Intelligence Committee who do not quite know what to do with it.

[7]

1 Document 124.

2 i.e. paragraphs 4-13 of document 124.

3 See Document 121, Attachment thereto.

4 Paragraph 29 reads: 'It should be home in mind also that a
potential subversive element exists in the presence in all these
countries of large Chinese communities owing allegiance to their
home government.'
5 Paragraph 39 reads: 'Both the Dutch Government and the
Indonesian Republican Government are opposed to communism.

Although in the event of war, with the consequent preoccupation of
Holland in European affairs, the Indonesian Republican Government
may seize the opportunity to press their claim for autonomy
against the Dutch it is unlikely that they would embrace the cause
of communism to do so. If, however, unsuccessful in their aim of
self-government, due to lack of support by the Western powers, it
is possible that the Indonesian Republican Government may turn to
the U.S.S.R. for assistance, which no doubt would be forthcoming.'
6 For Burton's instructions see Document 123, footnote 4.

7 Burton annotated the minute: 'Make it clear that you dissociate
yourself fro. views so that when it goes to Defence Council it
will not be said we were present & agreed.'

[AA:A1068/7, DL47/5/1A]

Last Updated: 11 September 2013

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125 Moodie to Burton