483 Stuart to Evatt and Burton

Cablegram 460 SINGAPORE, 8 September 1949, 4.88 p.m.

EMERGENCY TOP SECRET

For the Minister and Secretary alone.

I learn from a secret but absolutely sure source that a Dutch Army - engineered crisis threatens in Indonesia.

2. The Dutch profess alarm at the skilful infiltration of their areas in recent weeks which is credited with the object of claiming these as T.N.I.-occupied territories when opportunity offers to announce their presence. To meet this situation the Dutch Army Command is recommending to Lovink today or tomorrow that either, (a) a third police action must be envisaged, or (b) the Dutch must retire to prepared positions.

The Dutch Army morale is said to be low.

3. Somer, head of the Dutch Military Intelligence, has stated that Lovink is preparing a noose for his own throat with his pro- Indonesia policy and he, Somer, together with like-minded colleagues, is determined to see Lovink [1] himself. In general the intention of die-hard elements is to sabotage The Hague talks, which it is understood are not going well at the moment because financial questions seem evident.

1 A sign here indicates 'corrupt group'.

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