Creation of Malaysian Federation has incensed Dr Sukarno who considers this grouping of former British colonies a neo-colonialist plot which thwarts his ambitions for territorial expansion .

Recent violent anti-British demonstrations in Djakarta culminated in the burning down of the Embassy and the attempted seizure of diplomatic documents from the safe, a move prevented by Ambassador Gilchrist and his colleagues. Report, which quotes Sukarno as saying "Economics bore me" and "Indonesians will eat stones if I tell them to," portrays the President as an irresponsible demagogue who adopted a nationalistic foreign policy (depriving the Dutch of western New Guinea and now infiltrating Malaysian territory) to divert attention from Indonesia's grave domestic problems (stagnation, inflation and decline in food output). Aid received from both East and West (Sukarno with Khrushchev, John and Robert Kennedy, and on visit to Hollywood) has been used to equip the second largest army in Asia rather than on domestic development. Report implies that Sukarno will not dare confront Britain militarily in Malaysia and that he is more show than substance, like the grandiose statues which populate his capital.