Former Australian Prime Minister Bob Hawke's new Labor Government abandoned the party's tough stand on the annexation of East Timor under threat of huge retaliation by Indonesia, Cabinet documents from its early months in power reveal.
The 1983 documents, released by the National Archives of Australia, show deep concern that Jakarta would encourage "hostile measures" by other Islamic and non-aligned countries if Canberra tried to reverse the 1976 incorporation of the former Portuguese colony.
Indonesia would also find support among its Southeast Asian neighbours, and launch a range of retaliatory measures hitting Australian trade, transport, defence and investment.
Canberra could expect no help from its powerful allies, including the United States, an analysis of the issue by Foreign Minister Bill Hayden said.
"In essence, an inflexible application of the [Labor Party's platform] on East Timor would result in a dreadful shambles in a key area of our foreign policy, alienating major regional neighbours and causing damage that would take many years, probably decades, to repair," he told the Cabinet. Almost three decades later, Hawke still believes his Government was right to drop the party line, accept East Timor's annexation and launch new moves to boost relations with Indonesia, including a huge aid package and visits by the country's leaders.