We are receiving reports from Java that the Dutch are preparing to
launch another police action against Republican territory. These
are supported by persistent Dutch accusations of Republican
breaches of the truce agreement, coupled with the obvious
impatience of Dutch military leaders to settle the dispute by
force rather than by negotiation. British sources confirm that the
Dutch are planning along these lines.

2. I think we should immediately discuss with both the United
States and United Kingdom authorities what action can be taken to
avoid this danger, and also what our attitude would be if police
action were to be commenced.

3. You will immediately see the situation which might develop. The
Indonesian dispute is before the Security Council under Chapter 7
of the Charter [1] dealing with threats to the peace, and the
Security Council acting under this Chapter has ordered a 'cease
fire'. [2] In the event of further aggression, the Security
Council would have no option but to take the next step in its
power and call upon member nations to enforce the decision by one
or more of the measures provided, that is, the complete or partial
interruption of economic relations, communications and diplomatic
relations. We have been informed that the U.S. is not prepared to
protect the Netherlands further if the matter is resubmitted to
the Security Council. [4]

4. Even though no enforcement action were taken, or even though it
were vetoed, it would not be possible to avoid at leas[t]
discussion of it, including discussion as to whether enforcement
action should be taken against the Netherlands or only the NEI.

This will place 'Western Union' [5] countries in a most awkward
position and would play very much into the hands of those who
would like to see a difference of opinion in that group.

5. Because of local public opinion, and because also of our
position in S.E. Asia generally, it would be most difficult for
this Government to withdraw from the stand it has taken and to
take no action in the event of further Dutch aggression. I think
we would have to immediately raise the matter in the Security
Council, pointing out that the truce had been broken and asking
for further action under Chapter 7.

6. it is the general opinion amongst British and American
observers, as well as our own, that more concerted U.K.-U.S.

pressure on the Dutch authorities at an earlier stage to accept
Cochran proposals [6] or something like it would have been
successful. They have held off because of the position of the
Netherlands in Western Union. Now, however, the Dutch, confident
of retaining that support, are prepared to take action which will
do great damage to co-operation amongst Western Powers. In these
circumstances I feel that the Foreign Secretary and the Secretary
of State [7] should be prepared to make a joint approach to the
Dutch, informing them if they do take such action they cannot
depend upon the support of the United Kingdom or the U.S. in the
Security Council. I think, moreover, that they should be prepared
to persuade the French to make a similar approach to the Dutch, as
the Dutch, no doubt, count upon the exercise of a French veto.

7. Cochran's proposals are regarded by his Government as being
reasonable as the basis of a fair settlement, but apparently the
Dutch do not regard them as a basis even for, negotiation and are
meanwhile charging the Republic with breaches of the truce and
insisting that these should stop before there is any negotiation.

Meantime, they are maintaining the blockade against the Republic,
which is having severe effects on the standard of living of the
Republican peoples and making more and more difficult the control
of extremist groups. The outbreak of hostilities in Indonesia will
have most serious effects throughout S.E. Asia and will call in
the direct or indirect intervention of parties which we, the
United Kingdom, and the U.S. have been endeavouring to exclude
from S.E. Asia.

8. I should be glad if you would take this matter up with the
Foreign Secretary and the Secretary of State as soon as is
convenient and advise me of their attitude, as we might have any
day to make up our minds quickly as to what we should do.