The last chapter traced the thinking that emerged around trade through 1946 as both Indians and Republican leaders recognised the potential of Indonesia's rice crop to bring in both textiles and international alliances. In Australia, the battle outlined in Chapter 12 between right- and leftwing unions over the Boycott of Dutch shipping was being waged, with the Australian Government sitting uneasily between the two. After the Battle of Surabaya in November and December 1945, the Dutch increased their military presence on land and tightened their maritime blockade of Republican areas; it is this strategy that Republican leaders hoped the Indian trade would be able to disrupt.

The growing military pressure led Indonesian Republican leaders into negotiations for a political settlement with the Dutch. The result was the Linggadjati Agreement, a political accord concluded on 15 November 1946, that was intended to lead to a ‘United States of Indonesia’ in which the Republic would have only a limited area within a confederation still under the Dutch monarchy. One of the gains that the Linggadjati Agreement promised to the Republic was relaxation of the Dutch blockade, but in March 1947 the Dutch Parliament approved only a truncated form of the agreement. As a result, the Republic rejected it, leaving only uncertainty over future trade.

In Australia, Clarrie Campbell's plans for an active role in the development of trade between Australia and India were crumbling. As recently as 21 May 1943, the Postmaster General had informed the Security Services that Campbell was a man of good character, was not a security risk, and had no association with the Communist Party. But with his part in the Boycott and Campbell's growing association with the CPA unions, he was increasingly coming to the notice of ASIO. They passed on the possibility of Campbell's coming Indian trip to the British Government of India and that trip never eventuated. As the months wore on, Campbell was caught up in an increasingly desperate attempt to defend the seamen as they were confronted with bad nullies upon their arrival in India. He also kept up his involvement with the Indonesians, but it was an uneasy time.