Peter Lloyd: New light is being shed on Australia's preparedness to challenge Indonesia over its actions in East Timor after the invasion back in 1975.

A recently uncovered diplomatic cable suggests the Fraser government was warned about a humanitarian crisis unfolding by 1978, but evidence suggests that it failed to act. Malcolm Fraser now says that in hindsight, Australia should have responded sooner.

James Bennett reports.

James Bennett: In June 1978, the Australian Embassy in Jakarta sent Canberra a cable detailing a meeting between the then ambassador Tom Critchley, and Indonesian defence minister General Mohommad Yusuf.

Clinton Fernandes: We've got the Indonesian defence minister saying that there is a humanitarian calamity unfolding, that there is about 270,000 women and children who have been separated from their men and there is a famine building. It's clear that he's warning of a humanitarian catastrophe and he is calling for international assistance.

James Bennett: Indonesia had invaded East Timor in December 1975. Two and a half years later, word of food shortages among displaced was beginning to emerge. Clinton Fernandes is an East Timor scholar from the University of New South Wales.

Clinton Fernandes: And the embassy in Jakarta writes this down and sends it as a cable to the Department of Foreign Affairs and nothing is done, nothing at all. That was 1978.

James Bennett: How long was it before there was humanitarian intervention?

Clinton Fernandes: There would not be any international Red Cross aid for another 16 months.

James Bennett: In Australia, Malcolm Fraser was in power following Gough Whitlam's dismissal during the 1975 constitutional crisis.

(Question to Malcolm Fraser) Malcolm Fraser, these documents would seem to indicate that your government knew or ought to have known the extent of the humanitarian crisis in East Timor well before anything was done about it. Would you agree with that?

Malcolm Fraser: The documents seem to show that, yes.

James Bennett: But Malcolm Fraser doesn't believe he ever saw the cable in question.

Malcolm Fraser: My invariable practice was to initial documents that passed across my desk and because any copy that I might have seen does not have my initials, I don't believe that I did.

James Bennett: Malcolm Fraser argues by the time he took office, the opportunity to prevent an invasion had passed.

Malcolm Fraser: Earlier in 1975 when Gough Whitlam, meeting with president Suharto, virtually agreed to the incorporation of East Timor. At that time we should have been asking the United Nations to send in blue bereted observers to protect the integrity of the borders. When my government came into office, Indonesia had already moved.

James Bennett: Do you think though that there might have been a possibility to get some sort of humanitarian assistance earlier than was done?

Malcolm Fraser: I think it could have been. In retrospect many mistakes were made, yes.

James Bennett: Clinton Fernandes is now battling the National Archives in court seeking further cables from the early '80s, but says the Department of Foreign Affairs (DFAT) is objecting to their release on national security grounds.

Clinton Fernandes: Under the 30 year rule, they ought to have been released a long time ago, but on this occasion the Government is claiming that to release these documents would harm our national security today and that just doesn't seem plausible to me.

James Bennett: The cables released so far will be published on the website 'The Citizen' today.

Peter Lloyd: That is James Bennett reporting. The program is still awaiting a response from the Department of Foreign Affairs.