CANBERRA, 21 December 1948

NETHERLANDS EAST INDIES-POLICY, CABINET DECISION

Cabinet discussed today the Indonesian situation. It will be
recalled that Australia raised the question in the Security
Council originally in July, 1947, under Chapter 7 of the Charter
under which the Security Council has power not only to order
cessation of hostilities but to enforce that order by means not
involving force, for example, economic or other sanctions.

The Good Offices Committee has reported to the Security Council
that the Netherlands have violated both the order to cease fire
and the order to negotiate. The Security Council must now
therefore decide what action it should take to ensure its
instructions are carried out.

Cabinet endorsed action taken associating Australia with the
United States in raising the matter at an urgent meeting of the
Security Council at Paris. Australia will call for an immediate
cease-fire, the return of Dutch forces to previous demarcation
lines, and action by the military observers on the Committee of
Good Offices to prevent reprisals or executions. Meanwhile, the
Australian representatives at Paris are instructed to discuss with
other members of the Security Council, particularly Britain and
the United States, what further steps should be taken to bring
about a permanent solution of the dispute, for example, whether
the Security Council should order an immediate election with a
view to establishing a legislature along the lines proposed by
members of the Committee of Good Offices; whether the full
sovereignty ultimately envisaged by the Dutch should not be
granted with much less delay than the Dutch contemplate; whether
in the event of continuous disputes the United Nations should not
consider a trusteeship arrangement. [1]