856E.00/6–2046: Telegram

The Ambassador in the Netherlands (Hornbeck) to the Secretary of State

531. Last night Netherlands Govt released announcement which may be summarized in English as follows:

On June 17 Sjahrir handed Governor General van Mook counter proposals.89

These proposals comprise conditions of treaty containing mainly de facto recognition authority of Indonesian republic in Java and Sumatra and cooperation with republican govt for establishment of Indonesian free state, which will then enter into alliance with Netherlands. Hostilities will be stopped and both sides will agree not to extend positions occupied or increase present forces.

Representatives of outer territories will participate in negotiations concerning creation Indonesian free state.

Special relationship with this free state and Netherland kingdom will be established for these territories which object to unconditional inclusion. After 3 years plebiscite will decide relationship these territories.

Proposals constitute serious retreat from those presented Dutch Govt last April. Latter provide for entry of republic as constituent part of Indonesian free state within kingdom and do not include any restriction re entry Dutch troops.

In discussions at Hooge Veluwe no agreement was reached on two points, namely, treaty form to which objection was taken on constitutional grounds and recognition of republic’s de facto authority in Sumatra which is considered to be contradicted by facts.

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It might have been expected further agreement would have been sought on this basis. Sudden renunciation of what had gradually been attained now gives rise to very serious question whether position of Indonesian spokesman in discussions with Dutch is such that results may be expected.

Govt studies situation now created.

Hornbeck
  1. These were reported in telegrams 252, June 18, 7 a.m., 253, 11 a.m., and 254, 10 p.m., from Batavia, none printed.