INDONESIA

Our 282. [1]

Representatives of Australia, India, Siam, Pakistan, Iran, Egypt,
China, Ceylon, Burma and Afghanistan met this morning under the
Chairmanship of Nehru.

2. Despite Bajpai's assurances before-hand that discussions would
be informal, we were confronted at the outset with an Indian draft
resolution [2], the text of which is forwarded separately.

Discussion was not prolonged nor were the views put forward by the
different representatives either well informed or taken all round,
very pronounced. Nobody except the Indians appeared ready or able
to offer much of a lead but all favoured Bajpai's draft which they
accepted.

3. Apart from the phrasing of the first part of the draft, we saw
no advantages in adopting the second part which deals with
Economic sanctions against the Dutch (although not really
definitive) and denial of transit facilities. We explained that we
had anticipated merely an exchange of views and had not come
prepared to discuss a draft resolution. We said that in the
absence of instructions we were not in a position to associate
ourselves with it. We would, however, convey the views of the
meeting to the Australian Government along with our own views,
which were in conformity with the general tone of the meeting.

4. The question of financial aid was then discussed, Maramis's
letter [3] being used as a basis. Nobody had any clear ideas on
this subject except ourselves who relied on your telegram 165. [4]
This approach was readily seized upon by all present, Bajpai
describing it as a helpful expose. Nehru agreed that the Dutch
were primarily responsible for facilities. Both he and Bajpai
seemed to be relieved of the embarrassment which Maramis's request
for a loan has probably created for them (incidentally Thakin Nu
was present) and Nehru suggested that representatives at the
meeting should consider at leisure Maramis's letter in the light
of the Australian views. No resolution was considered necessary.

Bajpai said to the meeting that any loan would be the
responsibility of the major Powers as well as those sitting around
the table. He thought Indonesian Government needs should be
brought to the notice of the Security Council but the means of
doing this were not explored at any length.

5. Winding up the meeting, the Prime Minister said that the
Indonesian problem was dragging on. In the context of other
happenings, Java was a danger zone from which anything might
happen and he thought all responsible Governments should take a
strong line in the matter. Bajpai had earlier quoted his Consul-
General in Batavia as saying that Critchley believes that only the
Republican forces can cope with the Communists.

6. Bajpai also brought up a draft press communique. This was
rather too descriptive and we had it cut down. As it now stands,
it is innocuous. Nehru considered a release necessary to avoid
undue conjecture by the Press.

7. Full report follows by air mail.