INDONESIA

It was reported in the A.B.C. News session this morning that the
proposed
conference at The Hague has been postponed indefinitely because of
the refusal of the Indonesians to attend. The postponement of the
Conference has obviously been caused by the attitude of both
Federalists and Republicans both of whom have stated that they
would attend only on certain conditions.

The attitude of the Federalists has been fairly strongly pro-
Republican as indicated in telegrams K280 and K281 [1] from
Critchley where he reported two conditions on which the
Federalists would attend the Conference. These conditions are:

(i) the restoration of the Republican Government in Djokjakarta;

(ii) that the conference should not prejudice the position of the
United Nations Commission for Indonesia;

Final Dutch action will in all probability depend on three or four
factors. These factors are:

(i) the attitude of the Federalists who to a certain extent hold
the key to the
ultimate fate of Indonesia.

(ii) The attitude of the Republicans and the extent of guerrilla
opposition to Dutch occupation.

(iii) The attitude of the Security Council and more particularly
individual members of the Council such as the United States.

(iv) The attitude of other members of the United Nations, in
particular the Delhi Conference powers.

Federalist opposition must have been a severe blow to the Dutch
who have obviously relied on Federalist co-operation for the
implementation of their policy.

The postponement of The Hague Conference opens up a new situation
in the Security Council. If positive action is taken by the
Council and diplomatically, to exert further pressure on the
Dutch, they might be compelled to meet the Indonesian demands and
to implement the Security Council resolution [2] of January 28th.

It might be opportune at this stage to send further cables to
Commonwealth
Relations Office, Washington and New York emphasising the
desirability of maintaining pressure on the Dutch.