INDONESIA

Palar called this morning to discuss the position in Indonesia. He
is especially concerned with three aspects as follows-
1. He fears that unless the round table conference at The Hague is
conducted 'under the auspices' of the United Nations Commission,
meaning thereby that it should be presided over by the Commission,
acceptance of the round table conference by Soekarno and Hatta
would be repudiated by the Indonesian people. He feels as a result
of discussions with one of his Officers who has just returned from
Indonesia, that under American pressure the Indonesian leaders are
going further than will be supported by the Emergency Indonesian
Government and by the people generally. The Americans apparently
do not consider it to be necessary for the Conference to be held
under United Nations auspices, although our view, I imagine, would
be that this was essential. Palar has thought of trying to get the
Security Council to insist on this point but if the United States
is taking a definite stand in the matter, positive action by the
Council seems unlikely.

Early view of Critchley in this matter would be useful here in
anticipation of talk and possible Council meeting, particularly as
his letter [1] to the Secretary on 14th May, 1949, states 'Van
Royen admitted that although it was a bitter pill, the Netherlands
Government had accepted the position of the Commission as set out
in the 23rd March directive [2] of the Security Council'.

2. It now appears that, contrary to the Batavia agreement [3], the
Dutch are insisting on conditions relating to the cease-fire being
carried out before the re-establishment of the Government in
Djokjakarta. It has always been our understanding and it was one
of the reasons which prompted Australia and India to withdraw for
the time being its proposal for full discussion before the General
Assembly that such decisions could not be taken until the
Republican Government had met in Djokjakarta. Advice as to the
position in this matter would also be appreciated.

3. Palar feels that recent developments have tended to obscure the
international position of the Republic, especially if the Dutch
succeed in relegating the United Nations Commission to a minor
role at The Hague Conference. As a result he is seeking to secure
the appointment of Representatives of Government to Djokjakarta as
soon as the Republic is restored there. He is optimistic that
India and Egypt, in any event, will appoint Representatives as
soon as possible and he is anxious to know what the reaction of
the Australian Government would be to such a proposal.