PM Transcripts

6 6/ 075
FOR PRESS P. M. No. 49/ 1966
INDOIESIA/ vIALAYSIA RELATI ONS
Statement by the Prime Minister, The Rt. Hon. Harold. Holt, M. P1
The Australian Government warmly welcomes the hopeful
signs of a favourable outcome of the talks between the
Malaysian Deputy Prime Minister, Tun Razak, and the Indonesian
Foreign Minister, Mr. Adamr Malik,
The talks were held in an atmosphere of genuine
goodwill and friendship which offers the prospect of an end
to confrontation. The Government has taken a close and
informed interest in developments leading up to the meeting
in Bangkok and is encouraged in the hope that peaceful
relat ions will be fully restored between the two countries,
The Government also welcomes, as another step in
the establishment of friendly and co-operative regional
relationships, the announcement of the Government of the
Philippines that full diplomatic relations between Malaysia
and the Philippines are about to be resumed. These are
constructive developments.
Cabinet yesterday reviewed these matters and, also,
noted that Indonesia has initiated discussions with creditor
countries on the problems of accumulatod extornal debts and
economic rehabilitation, Australia itself, of course, is not
a creditor of Indonesia. Ministers reaffirmed Australia's
readiness to play a constructive part in assisting Indonesia
with its economic problems. We considered that it was now
timely for interested countries and institutions to discuss
together and with Indonesia what might be done, In the
meantime, we decided to give instructions to relevant
Departments to develop projects which Australia could
usefully undertake within the framework of our Colombo Plan
aid. programmie.
CANBERRA June 2, 1966.