I called today on Mr. Henderson, American Ambassador. The starting
point of our discussion was his statement several days ago
supporting the Conference see my telegram 54. [1] Henderson
explained that he had general approval from the State Department
and that Nehru's more temperate statement [2] at Calcutta over the
week-end disclaiming intention to form a racial bloc had provided
an opening.

2. Henderson had also suggested to the State Department that
Jessup might make a statement in the Security Council on the same
lines but the opportunity had not arisen and Jessup could not very
well say anything 'out of the air'.

3. Henderson made clear the United States determination not to cut
off Marshall Aid to Holland except as part of a general sanctions
plan approved by the Security Council. To take such action
independently would he felt be a complete negation of American
policy in Europe.

4. I emphasised to Henderson our misgivings on the current
American policy on Indonesia especially the apparent tendency to
give the Dutch a veto on any resolutions which they proposed to
introduce in the Security Council. Henderson suggested that
American reluctance to be more forthright at the moment was only a
temporary phase and that in two or three months she would move
much more strongly if the Dutch did not respond. When I pointed
out that the damage might be done in that time he indicated that
his Government were reluctant to do anything precipitate.

5. Our discussion was most cordial and Henderson appeared to
realise very fully the importance of America and the United
Kingdom adopting a friendly line towards this Conference and any
reasonable decisions it might make. He offered to place at our
disposal any facilities he might have. He had returned to Delhi
for the Conference and his whole attitude is in marked contrast to
the United Kingdom High Commissioner's who today left Delhi.

6. Clearly the United States attitude to the problems of this area
is very much in line with Australia's and the Ambassador gave
encouragement to Australia in this present Conference as in his
view our attendance is the best guarantee that the racial aspect
can be avoided.