NATIONAL INTELLIGENCE DAILY CABLE: RELATIONS WITH INDONESIA

Created: 10/26/1976

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NATIONAL INTELLIGENCE DAILY CABLE

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ustralia has gradually softened its position towarotnaonesia's incorporation of portugueaa east timor. the australians have been eager to remove this major irritant from their relations with indonesia.//

I rime kiniater fraser's visit to indonesiathie month helped thia process. he did not repeatpaet insistence on an internationally aupervisedin east timor, and he did not queation presidentstatement that east timor ia now an inseparable part of indonesia.//

oth the former labor governrent andcoalittoltnave had to steer clear of any endorsement of tha indonesian takeover because of widespread australian public sympathy forependencn. president uuharto recognizes that internal political considerations prevent the australians from accepting indoneaian actione outright, and he ia accepting fraser's noncommittal comments aa tacit acceptance.//

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//Australia's Labor opposition io stillolitical issueis tried to presentattitude on tha Timor issue as ais difficult to make this argument stick, however, whenLabor government itselfear agothat it would acquiesceuick Indonesianthe

//Both Fraser and the Labor opposition appear to recognTzetnat Australian public interest in Timor has declined, and the amount of political advantage that might be gainedebate on the subject does not justify further damage towith Indonesia. Foreign Minister Peacock's statement to Parliament this week that it does not serve Australia'sto aggravate its largest neighbor is the most publicso far that the Fraser government would like to put

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