INDONESIA

Within a few months and with the most probable straightening out
of the confused situation after transfer of sovereignty in
Indonesia and also taking into account the very probable
reluctance both on the part of the Dutch and Indonesians to freely
cooperate with regard to the future of Indonesia, the outside
assistance which will be required by Indonesia falls into the
following main fields:-

(a) Political;

(b) Economic;

(c) Military;

(d) Civil Aviation;

(e) Education.

Assistance will undoubtedly be given to the greatest extent
possible by India, particularly in the Political, Military, Civil
Aviation and educational fields, while America will strive for all
advantages to be gained from the economic situation-it seems
doubtful at present as to what extent America is interested in the
Military field. Britain's attitude will be to sit on the fence and
wait and see, and also it is not likely that Indonesia will seek
cooperation from Britain, particularly as they agree with the
concept of the East that British diplomacy is one of immediate
expediency and must therefore often become immoral. Australian
diplomacy, up to the present time, with regard to Indonesia has
placed her in the position of being considered an outstanding
friendly country and future cooperation and assistance is looked
for to a greater degree than Australia realises and moreover is
able to give, however as Indonesia will probably be the last
bastion in the East against communism, it seems that it would be a
fatal mistake not to give to the utmost what assistance can be
given, particularly as Australia stands in such a high regard with
practically all Indonesian political and military leaders.

The extent of assistance required from Australia will be as
follows:-

(a) Political. In the first instance guidance from the Australian
member of U.N.C.I. during the transfer period plus consultation
with the Australian Mission in Batavia and followed closely by a
special top ranking political mission to Australia for general
exploration of future cooperation. From the Australian side this
should be encouraged and possibly the future status of New Guinea
placed high on top level discussion.

(b) Economic. Indonesia will ask for practically all types of
goods, textiles, technical items and machinery from Australia, and
be willing to send in return copra, Kapoc, rubber, oil, nuts and
tea at a future date. She may also ask for a loan to be made by
the Government, or subscribed publicly or privately.

(c) Military. The future of the new U.S. of the Republic of
Indonesia is not clearly known at the present time, but it is
known that it will be dominated by the present army of the
Republic of Indonesia, the T.N.I., and that a military mission
will be requested to visit Indonesia from Australia or/and vice
versa.

Other assistance which will be required from Australia will be the
entry of Indonesian cadets to our Service Colleges, admission to
service specialist courses and technical mechanical training in
all its aspects.

(d) Civil Aviation. All civil aviation in Indonesia is under the
control of the N.E.I. Government and K.L.M., with the exception of
a few aircraft belonging to the republic of Indonesia and manned
by foreign crews and now scattered either in India or the
Philippines. There is not any agreement as far as is known between
the Dutch and Indonesia for the future of aviation in Indonesia,
and the present feeling of the Dutch is that their civil aviation
authorities and K.L.M. will pull out after sovereignty takes
place. It is known that K.L.M. are endeavouring to obtain an
agreement with the Indonesia[ns] to be able to carry on their
activities throughout Indonesia which include a network of air
services throughout the archipelago and a five-day a week service
to Amsterdam.

Foreign services at present interested in Indonesia are Malayan
Airways, which runs a service from Singapore to Batavia, a
Philippine service between Batavia and Manilla. BOAC have landing
and refuelling rights for their England-Australia service.

Australia has no landing or refuelling rights, although it is a
fact that QANTAS aircraft on charter to BOAC land at Batavia.

There seems to be no doubt that Australia, should it so desire,
will be asked for general assistance in the organization and
training of the future civil aviation service and probably actual
participation in the establishment of new airlines.

(e) Education. During the prolonged struggle education in
Indonesia has been entirely disorganized since 1942. Assistance
from all possible countries will be required in this field.

Australia will be asked for teachers, printing of text books,
supplies of Australian text books, supplies of educational school
materials, and an extension of scholarships under the scheme
already inaugurated.