856d.00/2–1348
Memorandum of Conversation, by the Acting Assistant Chief of the Division of Southeast Asian Affairs (Lacy)
| Participants: | Mr. W. D. Forsyth, Counselor, Australian Embassy |
| Mr. Harding F. Bancroft, IS | |
| Mr. W. S. B. Lacy, SEA |
Mr. Forsyth called at his request. He opened the conversation by explaining that the instructions of his government which prompted his call on me were not altogether clear and that the interpretations of them were his personal responsibility. Mr. Forsyth handed me a [Page 97] list of points (copy attached)1 upon which he said his government hoped to secure agreement from the Government of the United States.
During the course of conversation I made it clear that the Department (a) was deeply concerned that the stability and economic reconstruction of the area be achieved (b) agreed that the position of the Republic as an effective political entity should be preserved, but preserved as a member state in the interim government and, subsequently, in the sovereign United States of Indonesia (c) was determined that both parties comply with the letter and spirit of the Renville Agreement (d) agreed that the Good Offices Committee should supervise the plebiscites to be held at the end of the interim period (e) agreed that the powers of the Committee should be extended if necessary but should not be extended as a result of requests upon the Security Council or as a suggestion to either party, (I added that I thought the increase in the powers of the Committee should be an evolutionary process) (f) did not agree that the Republic should maintain control of its foreign trade or of its foreign representation. I said that I thought the Dutch were prepared to make no issue of the foreign representation matter and would be inclined to allow the Republic to liquidate its foreign representation in whatever way appeared necessary to save face.
- Not printed.↩