Your 318. [1] INDONESIA
Following is derived from official sources but with statement that
it can be accepted as authoritative expression of Canadian
Government's viewpoint.

'Canadian Government is as disturbed as Australian Government at
the possible effect on East Asia of the shooting in Indonesia.

Unfortunately only people who can gain by it are the communists.

We are supporting the "Cease Fire" portion of the resolution
before the Security Council but feel that it would be most unwise
to press things against the Dutch too far. In the past, sanctions
have not been imposed by the Security Council on States such as
the neighbours of Greece or against other Soviet satellites which
have violated the charter. In the light of that very recent past
we feel that it would not be appropriate to threaten sanctions
against a state such as the Netherlands which, apart from this one
episode, has been a faithful member of the United Nations. We were
disturbed to read in the press that Australia might press for
expulsion of the Netherlands; we hope that that story is not
correct.'

Comment-Above statement was made before Australian approach to
Security Council. Canadian attitude likely to be affected by the
(1) Over-riding importance attached to North Atlantic Security
pact.

(2) Possible impact on sections of Canadian public of any anti
communist line which Dutch may adopt.

(3) Sentimental ties with Dutch arising from war.