The gratifying news which has come to hand from Batavia prompts me
to write to you pursuant to the conversations I had the pleasure
of having with you on January 2nd. [1]

You will recall that on that occasion, as during my talks with the
Rt. Hon. the Prime Minister on November 27th [2], I anticipated
that a settlement of the dispute with the Djocja Government would
be arrived at in the very near future. I believe that I gave you
as my opinion that the United States of Indonesia would be
proclaimed very shortly. If at all possible this government would
include the Republican Representatives; if on the other hand the
efforts to secure the effective cooperation towards the
implementation of the Linggadjati Programme would fail again I
expressed as my opinion that the Netherlands Government would go
ahead with the envisaged political structure without Djocja.

Happily the patience and forbearance of my Government in
conjunction with the activities of the Commission of Good Offices
to the great value [of] [3] which the Netherlands Prime Minister
gave due credit is bearing fruit. The truce is a reality from to-
day if the Djocja Government has the situation in hand in the
sense that it does and can control the elements which up till now
sabotaged the possibilities of agreement. As to the political
aspect I assume that you are fully acquainted by your own officers
and Mr. Justice Kirby of the important developments which took
place particularly during the last 6 weeks all pointing in the
direction of a realisation of the projected political structure.

Amongst the information which has become available I would
particularly draw your attention to the very full statements made
by Dr. Beel, the Netherlands Prime Minister, during his visit to
Indonesia and in date of the 15th [4] instant on his return to the
Netherlands and those of Dr. van Mook [5], the Lieutenant
Governor-General, which show that the basis for the discussions on
the political construction of Indonesia has been laid as well.

The foregoing leads me to the problem which from the outset of my
mission has been of great concern to me. I refer to the boycott
now in operation for 2 years and 4 months. Facing the situation as
I have been able to observe during the last 6 months squarely and
speaking frankly I have no hesitation in saying that the action of
certain Trade Unions has cast a deep shadow on the relations
between our countries. It appears to me that it is of little use
to try and minimize the significance of sanctions as have been
imposed by the Seamen's Union and the Waterside Workers
Federation.

My experience has been that the numerous complications and
difficulties which we have to face continually are directly or
indirectly all related to the boycott. Hence the unremitting
attention of this Mission has been required for removing points of
incidental friction in which efforts I gladly place on record that
the Australian Government on various occasions was cooperative.

With all that, my work is doomed to remain of a negative character
if the root of the evil is not removed.

I submit and maintain my Government's view that the shipping
boycott never at any time has been a justifiable measure for the
purpose of bringing about a settlement of the Indonesian dispute.

Furthermore I challenge the view that the boycott ever had any
substantial support from the Australian people. On the contrary my
investigations and my sounding of the public opinion have shown
that probably the vast majority of unionists, if not completely
ignorant of the issue involved, are rather indifferent as to the
events which have occurred in Indonesia since 1945. My opinion in
this connection is not based on the established views of, what
might be termed, the conservative press.

In other words I venture to suggest that the attitude of the
Unions in question has been solely inspired and determined by
certain leaders. Up to the present their leadership has been
followed without questioning to such an extent that in practice
the impression was created that the control of the relations with
the Netherlands was almost taken out of the Government's hands. I
recall that, during your absence from Australia [6], I believe in
the beginning of August, discussing the then applied extension of
the ban on the Continental Shipping under Dutch flag, the Prime
Minister emphatically assured me that he would not permit any such
stand. [7]

I recognise the difficulties which confronted your Government the
last few months and which seemed to render any efforts for the
lifting of the shipping ban well nigh hopeless. I refer to the
time when my Government was compelled to restore law and order.

Nobody but you is better informed to know, as subsequent
developments have proved, that the Netherlands action was right.

If as we trust wiser counsels will from now on prevail in Djocja,
world opinion will judge the creation of the United States of
Indonesia and the Netherlands-Indonesian Union as an inspiring
example of enlightened statesmanship.

Under these circumstances I would fail in my duty if I were not to
stress upon you the necessity for positive action now by the
Commonwealth Government for the termination of the ban. From all
points of view the moment is opportune. The fact that an interim
Federal Government almost entirely composed of Indonesians has
come into being speaks for itself.

During the previous conversations above referred to I already
touched briefly on specific matters which as far as the
Netherlands are concerned require immediate attention and early
solution. I am convinced that the desire of your Government not
only for good relations with us but also for the restoration of
trade is very widespread and that your Government will receive the
full support of the people of Australia if determined steps be
taken to remedy a situation which to qualify it mildly is sadly
out of date.

I beg to reiterate a previous suggestion that the Rt. Hon. the
Prime Minister whose frank approach and great understanding of
this problem I duly appreciate, together with the Hon. Minister
for Supply and Shipping, should take the Union leaders in his
confidence. I cherish the belief that if the radically changed
situation be placed before them and adequately explained, the
leaders may be induced to reverse their attitude and trust your
Government that the interests of Australia as a whole require the
lifting of the ban. I repeat that if your Government is successful
we can go right ahead with the constructive work which has been
waiting for so long. Failure or delay would result-I fear-in
further deterioration of the relations.

I am sending a copy of this letter to the Rt. Hon. the Prime
Minister...