856E.00/5–346: Telegram
The Ambassador in the Netherlands (Hornbeck) to the Secretary of State71
[Received May 4—1:44 p.m.]
389. Minister Overseas Territories Logemann made report to Second Chamber evening May 2 on progress Indonesian negotiations. Prime Minister and four other Cabinet officers present in packed Chamber which received report in almost complete silence. Debate on Indonesia scheduled to begin May [next?].72
Most salient points Logemann’s report follow: discussions have not yet reached complete agreement but govt feels real progress has been made; basic principle of Nationalists that Indonesian republic be recognized as sovereign state held by govt incompatible with kingdom’s responsibilities; solution to threatening deadlock appear[s] to be afforded along lines recent agreement between France and former Annam Empire; applying same principle to solution NEI problem govt reached conclusion Indonesian republic might be recognized as part of federal Commonwealth of Indonesia which jointly with Netherlands, Surinam and Curacao would become partners within [Page 821] kingdom; status of Indonesia would be that of federation of self-governing units in which Netherlands Govt’s powers to assume final responsibility in respect of fundamental rights, proper administration and sound finances would apply to entire Commonwealth of Indonesia as well as to its constituent parts; recognition of republic as one of these parts would not mean to imply that Netherlands Kingdom would relinquish such powers as it needs for insuring satisfactory functioning new administrative organization and would be compatible with govt’s Feb 10 declaration; govt of opinion that group governing republic is representative of national aim all Indonesians in Java and when cooperation is resumed with Netherlands these leaders will be able overcome wanton acts currently being committed undercover so-called warfare once Nationalist minds are no longer dominated by presumption that freedom must be defended against Netherlands aggression; obstacles remain to early satisfactory solution, namely, republic in principle claims right to direct entire territory of Indonesia but Sjahrir and his partisans are prepared reduce their claims to those areas where republic exercises de facto authority; regarding outlying islands including Sumatra, Netherlands Govt maintains view they will be free to express their desires with regard to future status within Indonesia and should they desire to join the Republic govt will not oppose; purpose discussions have been to move Nationalists to lay down arms, to abandon revolt and to cooperate in peaceful reform of kingdom; frank advice of Indonesian Delegates who accompanied Van Mook to Hague strengthened govt in its convictions that Nationalism is force uniting all educated Indonesians.