I refer to your memorandum of December 23, attached, †regarding Canadian representation in Indonesia.

2. I agree that consideration should be given as soon as possible to the question of Canadian representation in Indonesia. I think General McNaughton has made a good point in saying that we should capitalize on the good will that our participa­tion in the Security Council's solution of the Indonesian question²¹ has won for us. I think we should move quickly but not precipitately.

3. One of the first questions we shall have to consider is whether we should have a Consulate General or a diplomatic mission in Indonesia. This involves not only a question of relative costs, but one of which type of office will secure the best results for the money that will have to be laid out. As you know, Indonesia has a population of 75 million people. That means that in Asia it is the fourth most popu­lous country, being exceeded only by China, India and Japan. In natural resources it is far wealthier than any of these. It is not as yet industrialized and because many of its products are complementary to Canadian ones, I anticipate the development of considerable trade between Canada and Indonesia. The Government there will be a highly centralized one, tending toward state control and socialism. It may well be, therefore, that a Consul General would find that he would have difficulty in pro­moting Canadian trade because of difficulty of access to senior government offi­cials. This difficulty would naturally increase if Canada were to be represented there by a Consul General while other countries appointed Ministers or Ambassa­dors. I am not thinking so much of the great powers like the United States and the United Kingdom, but rather of some of the middle powers like ourselves. I think it would be well for us to consider pretty carefully what others are going to be doing in regard to representation in Indonesia before pressing ahead with our own arrangements.

4. A further problem has occurred to me in connection with the qualifications of our senior representative there. As you know, Colonel Moore Cosgrave is very anxious to go to Indonesia because his daughter is married to a Netherlands bank official there. If we were to write to the Department of Trade and Commerce and ask them to appoint someone for Indonesia, I think there is more than a fifty‑fifty chance that they would appoint Colonel Cosgrave. Colonel Cosgrove does not have the political judgment which would make me feel easy about his representing Can­ada in Indonesia. I do not think that we can regard this post as a purely commercial and consular one, since our participation in the settlement of the Netherlands‑Indo­nesian dispute and our continuing interest in seeing Indonesia maintain its contacts with the Western democracies are political.

5. I understand that Mr. [Paul] Sykes, Canadian Government Trade Commis­sioner in Singapore, expects to visit Indonesia in February, before returning to Canada in the Spring on leave. I do not think Mr. Heasman is going to be able to get to Batavia, nor will our party. But I think that in the various contacts which we will make during our trip, we should have an opportunity to discuss the type of Canadian representation that would be appropriate in Indonesia. I therefore recom­mend that no decision be taken on this matter until the Minister's return²²

6. To further the matter in his absence, I am attaching for your consideration a brief letter to the Deputy Minister of Trade and Commerce, †asking him to give some thought to the commercial aspects of Canadian representation in Indonesia, in order that this matter may be more fully considered on the Minister's return?²³

A.R. MENZIES

²¹ Voir le chapitre III, partie 2, sons‑section (e)(iii).
See Chapter III, Part 2, Subsection (e)(iii).

²² Note marginale:/Marginal note:
t agree [A. Heeney,January, 3, 1950]

²³ Note marginale/Marginal note:
Good. A H[eeney] Jan 3 [1950]