INDONESIA

We have now received formal invitation from Government of India to
participate in Asian Conference on Indonesia.

2. This proposal is direct outcome of failure of Security Council
to take any action to restrain Dutch, even in spite of their
obvious and deliberate defiance of Security Council orders. Even
an order to withdraw troops, to release political leaders and to
recommence negotiations under Good Offices Committee would have
been sufficient to prevent a reaction in Asia of this kind.

3. Our understanding was that the Government of the United Kingdom
and the Government of the United States of America were favourable
to Security Council action along these lines. But, for some reason
or other, the resolutions before the Council were defeated.

4. The Security Council will meet at the end of this week and, if
lack of decision by it has been due to procedural matters and in
spite of virtual agreement, then it should be possible for United
States and United Kingdom Governments to reintroduce an
appropriate resolution and have it carried without further debate
and without taking any further notice of defiant statements by the
Dutch and assertions of fighting being at an end.

5. The Australian Government has decided to send to the Conference
proposed by the Government of India to discuss the Indonesian
situation two senior officers of the Department of External
Affairs, the Secretary, Dr. J.W. Burton, and a Political
Counsellor, Mr. C.T. Moodie, who was previously attached to the
Australian High Commissioner's Office at New Delhi. Their main
objective will be to explore means by which the United Nations,
and the Security Council in particular, can assist in bringing
about in Indonesia a speedy, just and lasting settlement of the
present dispute. These Officers will report back to the Government
the views of the Conference. If, before the Conference is
convened, the Security Council acts in such a way as to make
unnecessary this regional consultation, the decision of the
Government may be changed.

6. We regard the regional consultation suggested in the invitation
as being in complete accord with the Charter and designed to
assist the Council in its work.

For Washington only-
7. Please discuss immediately with State Department.