756D.94/191

The Netherland Minister (Loudon) to the Adviser on Political Relations (Hornbeck)

Dear Stanley: Please find enclosed two confidential memoranda for your personal information.

One of the enclosed refers to the possibility of assistance by Australian troops for defense of certain strategic points in the Netherlands East Indies.

In the other memorandum you will find some indications as to the source and the meaning of rumors concerning the presence of Japanese expeditionary forces in the waters of the Netherlands East Indies.

I am enclosing a personal and confidential note, addressed to the Secretary of State, with a memorandum containing the comments of the Netherlands Government43 on the tentative proposals of Mr. Kurusu.43a

Believe me [etc.]

A. Loudon
[Page 350]
[Enclosure 1]

The Netherland Legation to the Department of State

For some time there have been continually rumors, among others from Portuguese source, about movements of Japanese expeditionary forces. There has, however, been nothing positive. In mentioning recently a rumor about approaching expeditionary forces, the object was, therefore, to point out that in view of the existing tension the entry of Japanese forces in the waters of the Netherlands East Indies can only be interpreted as done with aggressive intentions.

[Enclosure 2]

The Netherland Legation to the Department of State

A small number of quarter masters from Australia will be sent to Ambon Koepang and Namlea to prepare quarters in order that in case of hostilities larger forces can be directed to said places. Arrangements for the sending of these forces in case of emergency have already been made.

A limited number of aviation technicians will also proceed to these places.

This matter has been arranged in common understanding between the British, Australian and Netherlands Governments.