Canberra, 26 September 1963
AP71. Secret
Indonesia
Indonesian foreign and domestic policies, which prior to September 17th were often shrewdly calculated, at present appear to be based on emotional considerations likely neither to increase Indonesia’s economic strength or her international reputation. Until the direction of these new policies can be studied you should draw on the following points for any discussions you may have:—
1. Malaysia has been demonstrated beyond doubt as the wish of the people of its territories. Failure to accept this means a rejection of the principle of self-determination which we regard as the basic right of all peoples who are sufficiently developed to exercise it.
2. Malaysia is a nation smaller than its neighbours and militarily weaker than they. It threatens no one.
3. Australia has striven to live at peace with its neighbours and to encourage its neighbours to live at peace with each other.
4. If Indonesia threatens Malaysia, either by word or deed, Australia will feel obliged to support Malaysia. The Prime Minister declared in Parliament yesterday that ‘We are resolved and have so informed the Government of Malaysia, and the Governments of the United Kingdom and New Zealand and others concerned, that if, in the circumstances that now exist, there occurs, in relation to Malaysia or any of its constituent States, armed invasion or subversive activity—supported or directed or inspired from outside Malaysia—we shall to the best of our powers and by such means as shall be agreed upon with the Government of Malaysia, add our military assistance to the efforts of Malaysia and the United Kingdom in the defence of Malaysia’s territorial integrity and political independence’.
5. We deplore attacks on Embassies wherever and by whomsoever they are undertaken. Incidents of this kind do nothing to advance the peaceful settlement of disputes but add bitterness to the argument.
6. We shall continue to strive to live in peace and friendship with Indonesia so long as Indonesia’s policy makes that possible.
7. We believe firmly in a policy of regional association and development, but this is only possible if there is goodwill between the states of the region.
8. We agree with principles governing Malaysian attitude that normalisation of relations should be a prior condition for any further talks with Philippines and Indonesia.
9. New aid must be examined in the light of circumstances. Aid may be in many categories. It can take the form of human relief or of technical assistance—broadly aid relating only to human betterment should continue.
[NAA: A1838, 3034/7/1 part 5]