I am writing to you on a matter which has engaged my attention for
a long time and which in the past has been the subject of many
conversations with you and in your absence with the Right Hon. The
Prime Minister. I refer to the boycott on the shipping between
Australia and Indonesia imposed by the Waterside Workers'
Federation and Seamen's Union and which but for a short interval
in the second half of 1948 has now been in existence for nearly
four years.

I would only repeat myself unnecessarily if I submitted again the
reasons why it is desirable, indeed necessary, that the
restrictions on trade and shipping between this country and
Indonesia should be removed. Mr. Chifley and yourself have never
left me in doubt as to the views of the Australian Government with
regard to the sanctions which the Unions have imposed. In fact the
Prime Minister recently assured me that he will do his best to
have the ban lifted as early as possible.

You are aware of the great changes which have taken place in
Indonesia during the last seven months and in particular of the
successful negotiations which, under the auspices of U.N.C.I., led
to the Van Royen - Rum statements [1] and the full implementation
which has been given to these by my Government. Perhaps equally,
if not more important than these concrete results already achieved
is, in my opinion, the restoration of confidence between the
parties in the dispute. Recent statements authorised by both sides
and U.N.C.I. show the satisfactory development of events and
anticipate with confidence the Round Table Conference which I
understand will begin next week.

Our own optimism in this respect is shared even by the Asiatic
countries, as seen in the lifting last month of the restrictions
imposed for a short time by the Governments of India, Pakistan,
Ceylon and Burma on Netherlands aircraft and shipping.

In viewing the shipping ban situation from all aspects I am
inclined to believe that the moment is opportune to remove the
ban. A certain amount of useful spadework has been done to smooth
the way for normal relations and I know that constructive work
beneficial to both our countries is waiting to be taken in hand
almost immediately. It would be deplorable, therefore, if the
present unsatisfactory situation were allowed to drift along any
longer. A clean break with the past should be made now specially
in view of the vast amount of good feeling which exists towards
Holland in this country. This friendship should not remain
unproductive nor be jeopardised by the action of a small minority
group. In fact I very much doubt whether even amongst the rank and
file of the two particular unions concerned there is any interest
in maintaining the boycott.