Your 98. [1]
We cannot agree to the giving to the Netherlands of a share of the
Japanese Fleet even though, in the opinion of the Admiralty, the
craft concerned would be of 'practically no offensive value'.
We cannot see that there is any real moral obligation to make a
share to the Netherlands for their part in the war against Japan
which was minimal in character.
Moreover at the present time the Netherlands is using every means
in its power, including virtual economic blockade, to bring the
Republic of Indonesia to a point of submission to all their
demands in spite of very clear injunctions by the United Nations
through the Security Council. In doing so, the Netherlands are
threatening the peace of this area and to that extent their action
is inimical to the interests of Australia, and we cannot be party
to any arrangements such as you suggest.
[AA:A3318, L49/3/1/23]