Your 1006. [1] Indonesia.

The Ambassador saw Senior State Department Officials today.

The United States Government is shocked at Dutch action taken
despite frequent assurances that police action would not be
resumed. The State Department agrees that the Security Council
must take immediate and firm action to ensure cessation of
hostilities. United States Delegation will co-operate closely with
Australian representative in Paris.

2. United States representative attempted to persuade Langenhove
last week to take the initiative in the Security Council and to
urge both Parties not to resort to force. Langenhove refused.

United States representative was instructed yesterday, after Dutch
had announced establishment of interim regime, to ask Australian
and Belgian representatives to join in approach to the Security
Council. Langenhove would not agree, but United States hopes that
in view of hostilities Spaak, who was to be in Paris today, may
possibly co-operate. In any event United States expect to secure
meeting of the Council tomorrow, Monday.

3. United States consider the first objective is to stop the
fighting. The Council should then direct attention to restoring
the position of the Republic. Consideration has been given to
possible use of economic 'sanctions' and United States
representative has been instructed to approach other Delegations
to ascertain whether their Governments would support such
sanctions. The State Department cannot commit the United States
Government at this stage but is consulting with the United States
Military Establishment to obtain their concurrence.

4. United States assume that the Committee of Good Offices cannot
continue to function as such in the changed situation, and that
its report on the circumstances surrounding the Dutch action and
reports of the Military Observers on the fighting will be its last
official action. (One United States observer is in Djokjakarta and
will be reporting on bombing. Latest United States report is that
Dutch Parachutists control the airport.)
5. The United States envisage that new body will have to be
established to supervise implementation of Security Council
Resolutions. They still do not favour participation by U.S.S.R.

and Ukraine and have in mind Canada and Norway.

6. Our impression is that the United States are now convinced that
effective and realistic measures must be taken and that they
really mean business.

7. Your 1008 [2] just received. We will keep in touch with the
State Department and report all developments. The Ambassador is to
see Lovett tomorrow morning.