Please see No.181 to Secretary of State for Commonwealth Relations regarding position in Indonesia. 
1. Our reports from Ballard and confirmed from Secretary of State lead us to believe that United Kingdom Government policy is to restrain Dutch from using force, but, at the same time, to persuade Republican authorities to do the compromising in order to reach agreement. This policy is, no doubt, dictated by Anglo-Dutch relations in respect to European interests. Such a policy completely disregards our own vital interests for the effect has been to encourage the Dutch into believing that in crisis they will receive United States and United Kingdom support. The result seems to have been that, while Indonesians compromised to the extent required to make agreement possible, Dutch were encouraged and have again become provocative and uncompromising. It would be appreciated if you would follow up telegram No.181. In doing SO, it would be interesting to know in what way Lord Killearn is regarded. We have discussed this matter with him on two occasions and he appears to have a good understanding of both parties and, to some degree, the confidence of both parties. He has personally a great respect for Republican leaders, whom he has found most willing to help. We would like to see him used again, rather than British representatives who have been approaching Indonesians, but it may be that Killearn is regarded as being too sympathetic with Indonesians. He at least is fully alive to Australian interests in this matter, while the present British representatives at Batavia seem to have little conception of any policy except that of maintaining close relations between the United Kingdom and The Hague authorities.