DUTCH NEW GUINEA

Dr Palar, the Indonesian representative in New York, called on the
Mission this morning and discussed the question of Dutch New
Guinea in a friendly and very frank way. The points he made
however have some most disturbing aspects as regards our relations
with South East Asia and I feel that I should report in detail
this conversation at once.

2. As the Department knows, the question of Dutch New Guinea is
causing considerable difficulty at the round table conference in
The Hague. For the first time the Dutch are admitting the
possibility that the inhabitants of Dutch New Guinea have some
political consciousness and are capable of expressing a useful
opinion on the form of government which they desire. This
admission has been made because the Dutch have persuaded
representatives of the people in Dutch New Guinea, who are
Papuans, to support a government by the Dutch rather than by the
United States of Indonesia. The East Indonesian representatives
are strongly opposed to this Dutch manoeuvre and desire the
incorporation of Dutch New Guinea in the United States of
Indonesia as part, probably, of East Indonesia. The Republic is
supporting East Indonesia in this matter.

3. Palar claims that the political development of these peoples
has, in fact, been very rapid over the last few years and that the
existence of western political ideas is much more widespread than
usually known. The Republicans could not, under any circumstances,
support the setting-up in Dutch New Guinea of what would amount to
no more than a new Dutch colony in South East Asia. Should the
Dutch succeed at The Hague with their present proposals for Dutch
New Guinea, the Republic would support a freedom movement which,
in Palar's view, would be inevitable amongst the people. This
support, Palar frankly stated, would amount to more than moral
support and would comprise the sending of Republic agents to Dutch
New Guinea even if the Republican Government did not admit
officially that it had taken any such action.

4. Clearly a serious problem of Australian-Indonesian relations
would, in these circumstances, immediately arise. A freedom
movement in Dutch New Guinea having a nationalist racial basis
would inevitably spread to areas at present under Australian
control. Palar went so far as to hint that any such freedom
movement would indeed take the form of independence for the whole
of New Guinea from the outset.

5. Palar, who has nothing but the friendliest feelings for
Australia, was obviously anxious to give us the earliest possible
warning of the emergence of this serious problem even although I
imagine it would have serious personal repercussions for him if it
became known that he was trying to assist us in this way. He
frankly discussed the racial aspects of the matter including the
problem of White Australia which he claims is well comprehended by
Indonesian politicians but totally misunderstood by the Indonesian
people as a whole. While our policy in Indonesia has made many
friends for us in South East Asia it is also true that we still
have very many enemies.

6. It is Palar's view that our policy as regards South East Asia
to date has done more than that of any other country in the world
to enable East and West to meet on a basis of reasonableness
rather than on a basis of instinctive antagonism. Much as he would
personally desire it Palar feels that the racial aspects cannot
possibly be divorced from any problem of East-West relations. It
is interesting that he suggested Israel in the Middle East as the
other country having a role similar to that of Australia in
bringing widely differing peoples to some common understanding. He
also said that New Zealand would be forced by the pressure of
circumstances to face up to this problem in the near future.

7. He suggests that the problem of New Guinea would only become
the more explosive if the Dutch proposals succeed at the moment as
in those circumstances a repressed nationalist group probably with
ambitions in relation to the whole of New Guinea, would inevitably
secure the full support of the Republic of Indonesia and would
present the most complex problems for ourselves. It is Palar's
view that Australia must face this problem and tackle it as soon
as possible.

8. While expressing the greatest interest in what he had to say I
expressed no opinions on this matter. It seems to me fairly clear
that Palar found, when he returned to Indonesia, considerable and
unexpected hostility towards us on racial grounds and that any
gratitude which the Republic may feel, as it certainly does, for
our policy in relation to their struggle with the Dutch might very
soon be forgotten in any conflict of interests arising in Dutch
New Guinea. It is my own view that a great deal of subsequent
trouble and misunderstanding might be overcome at a later stage
(also the time may not be far off) if it were possible for
Australia to make her policy and intentions in relation to
Australia and New Guinea perfectly clear at this time.