Under pressure from Fraser, who was hostile to a left-wing entity such as Fretilin, and a foreign affairs department urging a pro-Indonesian position, Peacock made an abrupt about-face. He supported the continuing complicity, entailed by frank consultations between Indonesian intelligence and the Jakarta embassy, in covert Indonesian military actions in the territory. As had Whitlam before him, he propagated the untruth that these illegal and lethal covert Indonesian military actions were a civil war between Timorese, thus allowing Indonesia to dishonestly depict itself at the invasion as responding to a dangerous and destabilising situation not of its making.
The Fraser government viewed strong relations with Suharto’s New Order as the key to its regional security strategy and to strengthening relations with the anti-communist ASEAN nations, which it viewed as vital in the wake of the unification of Vietnam and the coming to power of communist governments in Laos and Cambodia. The issue of Timor Sea resources added a further impetus to this position. That said, the ardency of Peacock’s conversion and the actions he took in support of an Australian cover-up of the dire humanitarian and human rights emergency unfolding in one of Australia’s nearest neighbours was extraordinary.
At the invasion on 7 December 1975, he avoided direct condemnation of the Indonesian action, instead regretting “the course which events in East Timor have taken” while appreciating “the gravity of the problems posed for the Indonesian government”. This obscured the deliberate undermining of the Timorese decolonisation process by the Suharto regime and the lethal and illegal covert Indonesian military intervention that had preceded the invasion.
Peacock visited Jakarta on 19 and 20 January 1976, where he expressed his agreement with Suharto that that “the matter [of self-determination] should be solved quickly”, a clear message of support for a perfunctory rubber-stamping of incorporation rather than genuine choice. Without making any substantial criticism of the invasion, he stressed the “utmost importance” of the relationship between the two countries and of resolving difficulties “between friends”. Some five weeks after the invasion, in a situation of escalating conflict, death and human rights abuses, this would have sent a message that the Suharto government could continue its campaign and the cruelties that accompanied it without fear Australia would criticise it in the international arena.
In March 1976, Peacock rejected an end to military aid to the Indonesian military, claiming it was “of value to both countries”. Subsequent years saw the gifting of a variety of materiel, including nomad aircraft that were used in East Timor, helicopters, Land Rovers, fighter jets and patrol boats. The following years saw the emergence of a prolonged conflict and severe human rights abuses as the Indonesian military attempted to suppress a sustained East Timorese resistance. The Indonesian military’s campaign of “encirclement and annihilation” from 1977 destroyed rural food resources, causing a famine that took many lives. Peacock announced de facto recognition of Indonesian sovereignty over East Timor in January 1978, with Australia indicating it was ready for negotiations on the Timor Sea.
In December 1978, Peacock linked de jure recognition of the Indonesian takeover with the commencement of talks on seabed boundaries, a position that allowed the government to move to full recognition with the commencement of negotiations in February 1979, without the inconvenient need for a public announcement.
During these years, the Australian government actively supported the Suharto regime in both the domestic and international arenas, denying evidence of abuses and belittling those who claimed otherwise. In early 1977, a report based on interviews with Timorese refugees in Portugal by former diplomat and intelligence officer James Dunn contained accounts of massacres, sexual violence, induced famine and other human rights abuses which have since been largely backed up. Peacock responded by questioning the report’s credibility and warning against the possibility of it creating a “misunderstanding” with Indonesia. His department lobbied against Dunn internationally when he took his message to a number of European countries and the US, spuriously dismissing Dunn’s report and describing his claims as “highly exaggerated”, and dissuading the Dutch government from initiating an international inquiry into the situation.
This narrative of denial regarding the situation in East Timor continued throughout Peacock’s period as foreign minister. In response to a question in parliament about the use of napalm in November 1977, for example, Peacock insisted he had no information regarding allegations that are “made consistently by a clique in this country” with an agenda on East Timor. When in late 1978 a group of visiting ambassadors reported a humanitarian emergency and widespread starvation, Peacock responded by blaming it on the “very poor” subsistence conditions in the territory, exacerbated by fighting between Timorese.
In 1980, he deflected claims by Amnesty International of large-scale abuses in East Timor by stating that he had “no information available to corroborate” such allegations and contending that “the position of the Australian government regarding violations of internationally accepted standards of human rights is well known to the Indonesian Government”. These efforts were paralleled at the United Nations, with Australia actively lobbying in support of the Suharto regime, propagating disinformation about the origins and nature of the conflict, dismissing claims of a humanitarian crisis and attempting to remove the issue from the UN agenda.