INDONESIA

Your 1O23 [1] badly mutilated. State Department fully appreciate
necessity for first hand information and are perturbed at recall
of military observers to Batavia. Freedom of movement for
Committee of Good Offices, and in particular, military observers,
is essential corollary to third paragraph to United States
resolution. [2] They doubt, however, whether passage of resolution
will affect Dutch attitude in this matter and consider most
effective course is persistent effort by Committee itself in
Batavia along lines used to secure return of Kaliurang Group. We
have stressed that support of Australian amendment [3] which
assigns definite role to military observers would strengthen third
hand.

2.United States consider every effort should be made to ensure
Good Offices Committee remains in operation to report to Security
Council, but doubt whether it can continue to operate effectively
for any long period. Out immediately following telegram [4]
contains assessment of United States position on Security Council
action and sanctions. Your queries re suspension supplies not yet
received. They may be contained in telegrams received
indecypherable. We shall try to anticipate queries.