856d.00/2–1149

Memorandum by the Director of the Office of European Affairs (Hickerson)1

After the conversation with the Secretary yesterday on the Atlantic Pact, Sir Oliver Franks of the British Embassy handed Mr. Acheson the attached memorandum on Indonesia2 and the possible effects in the Netherlands of an unwise policy in Indonesia. He said he would appreciate very much if Mr. Acheson would have the State Department working people consider this memorandum and later discuss it with Mr. Graves3 of the British Embassy.

After we left the Secretary’s office, Sir Oliver spoke to me further about this matter in the Secretary’s anteroom. He said he had not wished to take up the Secretary’s time unnecessarily with this matter but that the British Government was deeply disturbed over the Indonesian situation, not only from the effects it might have in Southeastern Asia where the U.K. has important interests, but also because of the possibility that a deteriorating Indonesian situation might so adversely affect the economy of the Netherlands that the European Recovery Program might be endangered.

Sir Oliver said that the British Government has had a good deal of experience in the transfer of power to colonial peoples; Burma, India, Pakistan et cetera. The British Government has found that there is always a lot of trouble and danger inherent in any such situation. Sir Oliver went on to say that in these circumstances he earnestly hoped that the United States would use its influence with both the Dutch and the Indonesians to “get them around a table and make them talk turkey”.

Sir Oliver said that when our working people were in a position [Page 225] to talk to Mr. Graves it would be helpful if he could in due course be informed that the views expressed by them on this subject are the ones of the Secretary.

I told Sir Oliver that Mr. Butterworth and I, or Mr. Butterworth and Mr. Thompson would after considering this statement get in touch with Mr. Graves.

  1. Addressed to the Director of the Office of Far Eastern Affairs (Butterworth) and the Deputy Director of the Office of European Affairs (Thompson).
  2. See undated memorandum, p. 198.
  3. Hubert A. Graves, Counselor of the British Embassy.