Following is substance of conversation today with Butterworth, Chief of office of Far Eastern Affairs, U.S.A. State Department:
5. Indonesia. Butterworth said that desire of U.S.A. was that committee of good offices reach early agreement acceptable to both parties. He admitted Dutch were not altogether reasonable, but said that account should be taken of fact that they were to some extent 'neurotic' and out of touch with world opinion because of length of German occupation of their homeland. He hoped no one would encourage the Indonesians to be intransigent. There were many means of bringing international pressure to bear on the Dutch to accept a reasonable settlement, but there were few means of bringing similar pressure to bear on Indonesians. Australia had a great deal of influence on Indonesians and was therefore in a unique position to [contribute to a settlement].  Butterworth said that U.S.A. hoped that Netherlands would continue to have close economic relations with Indonesians. Early recovery of production in Indies and access by Netherlands to this production was vital to success of Marshall plan for Europe. He also said U.S.A. feared that prolonged unrest in Indies would lead to increase in Communist influence in that area.