256 Critchley to Department of External Affairs

Cablegram K163 BATAVIA, 26 September 1948

SECRET

Bad communications are restricting reports on the Madiun situation. There has been no major fighting yet. The Government forces are still converging on Madiun where they are trying with some success to force the Communists to concentrate. There is still no reason to suppose the Government will not be able to handle the situation though it may take at least another two or three weeks.

2. Even if the Madiun trouble is settled quickly and the Communist leaders cap-tured, dissatisfaction in the Republic is likely to break out again unless its two major causes are dealt with speedily, i.e. the economic shortages and the absence of a satisfactory political settlement.

3. Djokja is outwardly quiet but I gather there are a number of ripples, mostly political, beneath the surface. Apparently there are still some who oppose drastic action against the communists on the score that Indonesians should not fight Indonesians.

4. Netherlands authorities appear to be icy cold on the American proposals and there is not yet an official Netherlands response.

Nevertheless there are signs that American and other pressures are being felt. The Hague cabled that it expects to be able to make' a substantial contribution' by October 1 and the Netherlands authorities have formally put off for at least a week the eviction of Republican families from Batavia.

5. At the request of the Americans the Republic has agreed to refrain from reporting its complaints' to the Security Council until the end of the month. The Netherlands comments to the Security Council on the Republican report [2] are intemperate and include no evidence in support of their assertions. The Republican case is supported by the previous reports of the Committee.

1 A reference to the 'Special Report of the Delegation of the Republic of Indonesia to the Security Council on Recent Developments in Indonesia' (S/AC.10/CONF.2/BUR.32). Although the report was sent to the Security Council in early September, Palar was instructed not to present it before 25 September. The full text of the report is given in United Nations, Security Council Official Record; Third Year, Supplement for December 1948, pp.67- 75. 2 The Netherlands Delegation's 'Comments on the Special Report of the Delegation of the Republic of Indonesia to the Security Council on Recent Developments in Indonesia' (S/AC.10/CONF.2/BUR32/Add.1) was submitted to the Committee of Good Offices on 24 September. The full text of the report, with appendixes and annexes, is given in United Nations, Security Council Official Records, Third Year, Supplement for December, PP.75-116.

[AA:A4357/2, 48/254, v]