111 Department of External Affairs to Ballard

Cablegram 188 CANBERRA, 9 July 1947, 6 p.m.

SECRET

Your 219. [1]

Immediately following telegram contains text of statement [2] issued by Minister today. This should be clearly understood as willingness to assist both parties. Ships are now loading from Australia. Oesman has been here without any embarrassment to the Dutch and has been most helpful. We have preliminary ideas sufficiently advanced to discuss future economic relations and assistance and would welcome opportunity of discussions with Saroso and Dutch officials.

As we see it, problem of rehabilitation of Indonesia is one of supply of parts for depreciated machinery and such special assistance which can be supplied, not by credits, but by country willing to ascertain needs and arrange their production and supply. We are willing to try to do that. Please approach Dutch authorities again and suggest Saroso comes to Australia accompanied by Dutch official to discuss way in which we can help Dut[ch]-Indonesian problems of rehabilitation.

1 Ballard had reported on 8 July that he had been pressing the Dutch authorities to allow Saroso to visit Australia, but that they would not agree.

2 Document 110.

[AA:A1838/283, 401/3/10/8, i]