Security 433. INDONESIA.
1. We are not entirely clear as to your immediate objectives. For example in telegram 428  you say you are endeavouring to persuade Dutch to accept Indonesian suggestions on mediation, i.e.
by a number of Nations. At the same time you propose joint Australian-United States mediation, i.e. by two States only.
2. As we see it there is a clear distinction between mediation and arbitration and we are not sure whether your proposal for Australian-United States mediation is for the purpose of- (A) Supervising the Council's decision and seeing it is carried into effect; or (B) To make proposals for a long-term settlement after the cease- fire arrangements have been effected.
3. It seems to us that our immediate objective, in view of the conflicting and unconfirmed reports of violations, is to see that the terms of the Council's decisions are faithfully observed.
4. It was to this end that you suggested a senior United Nations official be sent out on the authority of the Secretary-General and the President of the Council. It is clear, however, that the Secretariat will not do this without a decision by the Council.
Lie does not return to New York until Friday.
5. The whole question will be discussed at a meeting on the subject tomorrow when a reply from the Indonesian Government will be before the Council. This telegram- (A) Makes it clear that the decision of the Council has been put into effect unconditionally.
(B) Asks Council to appoint representatives to supervise the Council's decision.
(C) Expresses the opinion that the Council should further decide that there should be a withdrawal of forces to the original perimeters.
6. You will note that no question is raised of the ultimate settlement or the United States offer of good offices. Romulo will, whether invited to participate personally or not, submit to the Council proposals similar to those contained in the Indonesian telegram, though we have no indication as to his exact proposals.
7. To our mind a small commission or senior officer of small commission of the Council or senior officer of Secretariat would be quite appropriate to supervise observance of cease fire orders and we feel we should therefore support Indonesian Government's request (B). This would not in any way prejudice our plans for joint U.S.-Australian arbitration or mediation for a long term settlement.