Indonesia. We have passed over to Canadian High Commissioner here
telegrams on Indonesia even confidential instructions to Hodgson
at Paris. We have also instructed Hodgson to keep Canadian
representative on Security Council fully informed. In these
circumstances we have not taken steps to repeat to you all
telegrams. Our 318 [2] indicated the general lines of our intended
policy in the Security Council. This has subsequently been
approved by Cabinet with the exception that Government does not
wish to make firm decision on sanctions or punitive action under
Article 41 pending definition of United States and United Kingdom
views. Government would favour supporting United States but would
hope United Kingdom would join later.

2. You should make known to the Canadian Government that we are
concerned with the wider issues. We have persistently tried to
build up a bridge between the West and the Asians in circumstances
where Nationalism has been running in the opposite direction. We
supported what we consider to be the just claims of the
Republicans while recognizing the rights of the Dutch particularly
during the interim period before sovereignty was transferred and
we have been influenced in this by the belief that the Hatta
Government was the best hope of maintaining a stable and moderate
government in the Republican areas. The blow to the prestige of
the West in Asia may be irreparable. Failure of Western Powers to
deter the Dutch will have repercussions throughout Asia.

3. Whether the position can be restored depends on the Security
Council and on the willingness of the United States and the United
Kingdom to face up to firm action. If Western countries miss this
opportunity to prevent further widening of the division between
Asians and Western countries, the repercussions will not only be
local but represent a further blow to the United Nations.