INDONESIA

We had full discussion with Palar and Menon (in the absence of
Raupeirs [1], Washington) this morning. Palar is becoming
increasingly nervous of the responsibility for the acceptance of
the Council proposals in view of his isolation from his
Government, and is doubtful of acceptance in Indonesia of the
United States draft [2], which may leave the Dutch in dominating
position long enough to make the Republic's task very hard. Both
he and Menon seemed favourably inclined to your proposal re the
commission drawing up plan of settlement for one reason, because
it would delay matters until Sjahrir or another representative
could arrive, and eliminate negotiation likely to be abortive.

2. Jessup gave us contents of revised resolution drawn up after
consultation with the other members which will be tabled to-morrow
with Norway, Cuba and China as co-sponsors. Text follows in clear
and differs only to extent necessary to secure seven votes of
which Jessup now confident. We put forward views expressed in your
26 [3] which were sympathetically received. Jessup does not expect
any decision to-morrow and seems to expect a number of amendments.

He felt that in view of inter alia consultations which have power
[4], other than the members of the Council, leading the revised
text, he could not now do other than table it perforce to help
clarify discussion. He is communicating with Washington to secure
the views of the State Department and Cochran August 24th
proposal. [5] His main objection appears to be in the uncertainty
of whether the delay in Council action on the settlement involved
might lead to further bitterness in Indonesia making ultimate
settlement still more difficult.

3. Also saw Cadogan to-day when he explained certain modifications
which the Foreign Office wish to see in the United States draft.

None of these is in our direction but for most part are designed
to make the text more palatable to the Dutch.