CONFIDENTIAL
757
MDLIAN 6049
NOT ALLOW US TO AMEND THE UK ASA BY AN EXCHANGE OF NOTES WITHOUT AT
THE SAME TIME AMENDING THE (PERFECTLY ACCEPTABLE TO US) DEFINITION OF INDONESIAN TERRITORY. IF THEY TRY ALSO TO RESIST READ ACROSS, WE MAY EVEN HAVE ANOTHER WRANGLE OVER THE DEFINITION OF TERRITORY.
5. THE REAL DIFFICULTY, HOWEVER, ARISES IF THE INDONESIANS DO NOT ACCEPT OUR TEXT FOR THE HONG KONG ASA. AS PARA 2 OF TUR SAYS, WE CANNOT NEGOTIATE A SEPARATE FORM OF WORDS FOR THE HONG KONG ASA AND EXPECT TO RING FENCE IT. WHETHER WE LIKE IT OR NOT, LINKAGE WITH THE
OTHER AGREEMENTS DOES EXIST. IT WOULD BE IMPOSSIBLE TO AVOID READ-ACROSS IN THIS DIRECTION. THE INDONESIAN DFA REALISE THIS TOO.
ALTHOUGH THEIR COLLEAGUES IN THE DEPARTMENT OF COMMUNICATIONS AND GARUDA ARE KEEN TO HAVE THE NEW HONG KONG AGREEMENT, WE ARE ULTIMATELY THE DEMANDEUR. WE RAISED THE ISSUE, AND SEEK A SEPARATED ASA. IF THEY CAN RESIST THE INTERNAL PRESSURE, THE DFA MAY BE INCLINED TO HOLD OUT FOR WHAT THEY WANT ON DEFINITION OF TERRITORY HERE, AND HENCE ACROSS THE BOARD.
6. WE THEREFORE SEE LITTLE OPTION BUT TO CONTINUE OUR NEGOTIATIONS WITH THE DFA, BRINGING THE LINKAGE INTO THE OPEN TO MAXIMISE OUR LEVERAGE AND TO AVOID THE INDONESIANS SUBSEQUENTLY TRYING TO REUSE READ-ACROSS), AND STOKING UP OUR ALLIES WITHIN THE BUREAUCRACY CON THE VARIOUS AGREEMENTS) AS MUCH AS POSSIBLE.
7. WE LOOK FORWARD TO YOUR EARLY FURTHER INSTRUCTIONS. IT WOULD HELP IF WE WERE AUTHORIZED TO MAKE IT CLEAR THAT IF THE INDONESIANS REFUSE OUR FURTHER FALL BACK POSITION WE HAVE NOTHING LEFT TO OFFER AND ARE PREPARED TO LEAVE THE DRAFTS, INCLUDING THE ASA, UNINITIALLED.
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