IMMEDIATE

Press Reports state that Van Mook saw Secretary of State yesterday
[1] and that in a press conference later he stated United Nations
intervention had done little more than to delay a proper solution,
that the communist party in Indonesia had means of communication
with the outside world and that the bulk of the people were not
hostile to the Dutch etc.

2. It would seem to us that the Dutch are at the moment
endeavouring to ascertain what support they would obtain from the
United States if they went ahead with complete military occupation
of Indonesia and suppressed the independent Republican movement.

3. From an Australian point of view nothing could be more serious.

It is agreed by all observers that the Republican movement is
firmly founded and Eaton reports enthusiastic support not only at
Djokjakarta but also in Dutch occupied area. The Dutch have
throughout chosen to ignore the fact of the strength of this
movement and an attempt to suppress it will lead to strife over
many years with serious repercussions in Australia.

4. Eaton who has been in the interior confirms other reports that
the independent movement is not in any way sponsored from outside,
is not communist-led and that conditions in the Indonesian areas
are not as described by the Dutch. There is a measure of law and
order which could be greatly improved if opportunity were given.

5. Without however going into further details on the merits of the
case you should remind the Secretary of State that Van Mook can
give only one side of the picture, that the Dutch have not been in
Indonesian territory, that other observers have been there, that
the Dutch attempt to justify their previous military action and
future military action by asserting Indonesians are an
irresponsible people should be regarded only as evidence of one
interested party. The facts on Indonesia are little by little
coming to public knowledge and the more they do so the less clear
cut the issues will appear to be and it would be most unwise for
the United States or any other Government to encourage the Dutch
into believing that further military action would be condoned and
that the United Nations could be prevented from demanding the
imposition of whatever sanctions might in its view appear to be
required to restrain either party which breaks its 'cease fire'
order.