INDONESIA

The Minister for Overseas Territories [1] announced in the second
chamber this morning that Cabinet discussions with Beel had
resulted in 'full clarification' and that latter had expressed his
full agreement with the policy outlined by the Government in the
Chamber. [2] Discussions would be continued with high
representative on implementation.

2. Press reception of Wednesday's Ministerial statement (my
telegrams 23 [3] and 24) was generally favourable with some
reservations expressed about its vagueness on some important
points. General opinion is that the Catholic Party (of which Beel
is protege has been [4] and will continue in Government.