264 Eaton to Department of External Affairs

Cablegram 258 BATAVIA, 5 October 1948, 11.30 a.m.

IMPORTANT TOP SECRET

With the approval of the Far Eastern Office and the Republican Government, I, with Mrs. Eaton, left Batavia by car on September 26th, arrived Djokjakarta September 28th, left Djokjakarta October 2nd, returned October 4th. Also visited Tjilatjap and Tea Estates in Dutch territory. Trip without incident and Republican territory covered without escort and is quiet.

The Republican President, Vice President and other Ministers, informed me that the Communist outbreak has been ended by present action taken, but requires strict surveillance, and this is confirmed by Australian Military Observers who returned to Djokjakarta October 1st from troubled areas. On account of time factor I was unable, although invited, to visit Madioen.

Also informed by the President and the Vice President that the present outbreak is Moscow-planned [1] combined with present economic situation which is undoubtedly at low level, but can be coped with now, although the future is doubtful without early political settlement and economic restoration which, from my observations, is obvious. The outbreak was originally timed for November but advanced on account of Republican Government's recent action in placing the railways, oil installations et cetera, under military control in anticipation of impending trouble. The President also advised that the Republicans have chosen the Western Powers in preference to the Soviet Bloc to back a fair political settlement and intend sending the Foreign Minister with Sjahrir as adviser, possibly followed by Hatta, to Paris, at an early date, to place their case before the United Nations direct to obtain an early settlement.

1 Symbols indicate that the text from here to the end of the sentence is 'as received'.

[AA:A1838, TS383/6/1, i]