1. Message sent late last night United Kingdom that Australia was
disposed refer Indonesian matter to Security Council provided no
strong objection. [2] Tentative reply is reiteration of argument
that Russia would take advantage of embarrassing and discrediting
western powers and posing as champion Asiatics. [3] Have replied
that clearly western powers, and particularly Australia, will be
discredited if no action taken and even more so if Russia or
satellite and not one of western powers eventually refers matter
to Security Council. [4] In fact, their own argument would demand
action by us. It is becoming, in my view, more and more apparent
that objection is not to Russia, but to embarrassment which might
result from open debate with friendly European power. Our
strategic position not appreciated. Long legal arguments are also
advanced.

2. Proposal is United States - United Kingdom arbitrate and
Indonesians and Dutch undertake to accept joint award. Have
replied direct and through Beasley [5] and through Hankinson we
would not tolerate any mediation or arbitration with which we were
not principally associated and, in fact, joint action of that kind
would force us to take prior independent action.

3. Position still fluid. Will be speaking to Prime Minister [in]
North Queensland late tonight who yesterday was prepared take
initiative Security Council if United Kingdom had no strong
objections. United States - United Kingdom negotiations far from
complete and unlikely joint action before weekend.

4. Senator McKenna has spoken Prime Minister fully endorsing
viewpoint you put forward regardless of United Kingdom objection
regarding Russia. At request Prime Minister, informed him your
views which, in his view, fully express position.

5. Meanwhile 'Canberra Times', churches, unions, United Nations
Association and other bodies demanding Security Council action by
Government.

6. Am assuming your view would be to go ahead despite United
Kingdom objections, particularly if they persist in joint United
States - United Kingdom approach, and confirmation would greatly
help.