It is with great pleasure that I received the news of Mr. Kirby
being appointed by your Government as Australia's representative
to the Three Power Commission. I am convinced that a good
understanding of the Indonesian problems will serve Mr. Kirby a
great deal in representing the Republican point of view in the
coming negotiations as well as in finding a sound base of close
cooperation between the Governments of both our countries.

In view of present and future relations between the Commonwealth
of Australia and the Indonesian Republic I would like to request
your attention for certain points which might be of essential
importance for you. I believe that in this all [sh]ould be done to
achieve practical ways of cooperation so as to serve the urgent
interests of both our countries in facing common developments.

It should be well known to you from our reports as well as from
those of the consular representatives of Australia in Indonesia,
that the present situation is highly untenable, both militarily
and politically. It will also appear from the consular report on
the observance of the cease fire order that no practical solution
can be found so long as there is no real demarcation line which
could enable the troops from both sides to cease fire and stand
fast.

This could be easily understood by reading the military report
which the Republican Government has submitted to the Consular
Commission.

It is most essential [to understand] that Dr. van Mook's statement
[1] of fixing a 'demarcation line' one sidedly (August 29, 1947)
has increased hostilities on both sides. You may understand that
the Republican Government cannot accept any 'new boundary'
whatsoever without its consent. Consequently, the general
political and economic situation, especially in the occupied
areas, is aggravating constantly. Hostilities from the part of the
Dutch have been extended to destructive actions against the
Republican civil administration, the Republican police forces,
public services and other institutions in occupied territories
which the Dutch claim to be their territory. In addition the naval
blockade of the Dutch is hampering any trade with other countries
while at the same time preventing productive forces in the
Republic from creating new means of existence. Early in September
1, 1947 the Republican Government issued a statement denying the
Dutch right to exercise civil or military authority in the areas
lying within the 'Van Mook line'.

According to our opinion the only solution should first be found
in a political settlement of the conflict, following the
withdrawal of the Dutch troops to the demarcation line of October
14th, 1946, or, at least to the position before the outbreak of
hostilities on July 21, 1947.

I would like to emphasize that in the near future firm and solid
relations, with the Commonwealth of Australia should be achieved.

The Republican Government has always been of the opinion that such
relation could only benefit both our countries and thereby
contribute definitely to the efforts of stabilizing the economic
and strategic position of this part of South East Asia. Any
relation of that kind can only be based on the recognition of a
free and independent Indonesia, granting the population the
essential human rights and admitting foreign capital
invest[ment]s, thus securing a minimum amount of peace and
stability.

This, of course, should be seen as a part of a broader scheme in
which the countries of South East Asia and the South Western
Pacific could achieve political and economic stabilisation and
oppose any kind of expansionism. I am convinced that the Republic
by virtue of its agricultural and mineral wealth can certainly
constitute a positive factor. Exchange of goods between Australia
and Indonesia might [prove] quite advantageous, also in view of
the relatively short communications.

But to establish the abovementioned relations it is essential that
the political prerequisites should be fulfilled. The Republican
Government has nominated Australia as its representative to the
Three Power Commission in the firm belie[f] and conviction that a
close understanding between both our Governments can be achieved.

I would suggest your Government to consider the early possibility
of preparing a concrete form of cooperation, in particular on the
field of trade and cultural exchange. Such an agreement would not
harm our relations with other countries, even with the
Netherlands, on the contrary, it would open all kind of
possibilities on the basis of a good neighbour policy in South
East Asia.

I would also suggest you to appoint an Australian representative
to come to Jogjakarta and discuss all kind of matters with the
Republican Government.

I hope that the coming weeks will prove a solid partnership of
both our countries. [2]