The New York Times of October 16 carried an item from Kuala Lumpur reporting that the Malayan Prime Minister was leaving for his North American visit with a plan for the settlement of the Netherlands-New Guinea problem. The article stated, "It is believed he will propose a United Nations trusteeship for the Dutch-held territory with Indonesia as the administering power." While the Tunku has been concerned for some time with the disturbing effect of the West New Guinea dispute on relations in the area, and has said that he would be glad to assist in bringing about a peaceful settlement of the dispute if invited to do so, this is the first indication we have had that he might have definite proposals in mind. Further light on the Tunku's intentions is cast by the attached telegram No. 230 from Kuala Lumpur.†

2. While it is encouraging that the Tunku envisages a possible solution through the United Nations, it is doubtful whether this proposal would gain much support — the Netherlands and Australia would undoubtedly oppose it vigorously and it is not clear that Indonesia would welcome it since it begs the question of sovereignty over the territory which Indonesia claims.

3. The Netherlands Government has publicly stated that its policy is to bring the territory to a situation where it could determine its own future and has embarked on a programme of encouraging and increasing Papuan participation in administrative and legislative functions. Dutch policy envisages self-determination for the territory as soon as its population is capable of making such a decision — which would not preclude union with Indonesia if this was the people's wish. The Canadian Government recognizes Dutch sovereignty over the territory and has been concerned that the wishes of the people of West New Guinea should be of paramount concern in determining the future of the territory. Current Netherlands (and Australian) policy seems to hold best promise of achieving this objective.

4. The Netherlands Ambassador called on me on October 17 in connection with this news item and suggested informally that it might be suggested to the Tunku that this question could usefully be discussed with the Dutch during his forthcoming visit to the Netherlands.

      N.A. R[obertson]