Foreign Relations of the United States, 1946, The Far East, Volume VIII

856E.00/7–1046: Telegram

The Consul General at Batavia (Foote) to the Secretary of State

secret
rush

Batavia, July 10, 1946—10 p.m.
[Received July 11—9:13 a.m.]

290. I am convinced beyond doubt British have some ulterior motive re NEI. This idea growing since 1928 [1940?] when straws began pointing same direction. Since my return last October increasing number straws all point likewise. While fuller report follows by airmail, following are some reasons my opinion:

1. Nearly all British officers in Java have been and are openly anti-Dutch. No American could stand various insults offered to Dutch. On other hand they have been and are cordial to Indos.

2. Lord Inverchapel⁹³ assisted Sjahrir to draft counter-proposals. British Minister MacKereth openly states he anti-Dutch and also assisted Sjahrir (mytel 270, June 26⁹⁴).

3. When Dutch have chance restore law and order in certain area, even at request of Indos, they are hindered or refused permit to operate.

4. British made plans protect Shell refinery but plans did not include USA property until I requested information.

5. About 12,000 British troops now in Sumatra but do nothing and permit chaos to grow. That number troops could pacify Sumatra to intense delight great majority of natives.

6. British rubber estates Malaya opened and producing. At same time Sumatra rubber and rubber machinery going port of Malaya with British doing nil prevent this smuggling perhaps to gain foreign exchange therefrom.

7. Increasing numbers prominent British estate owners coming Java from England to see British General Mansergh and British Minister MacKereth. Since most these known to me personally they visit my house and without exception tell me Anglo-Austral-USA control over Sumatra is necessity. Such would leave British and Australs in control with USA holding empty bag.

8. Continued chaos in Sumatra would have excuse for ultimate British control. Sumatra natives dislike those of Java. If Sumatra became part of Indo Republic, Java could not control it, thus making British control necessary. British estates and commercial interests would then control Sumatra and US interests would suffer.

9. About 40 percent pre-war capital investment in Sumatra was British. While this is enormous amount it is unimportant compared with control over all Sumatra production and at same time giving Malaya breathing time to rehabilitate estates. British control would pass to their hands world’s most important rubber and palm oil areas plus Sumatra market for imported goods.

10. British Govt in London may have no ulterior motives but British businessmen here and elsewhere are working towards ends mentioned above.

11. Local American businessmen fear this effort and have queried me many times.

12. While the issue may not arise, my purpose is to warn Dept is [it] probably will. If it arises, Dept will recognize it at once. I urge this situation cannot be watched too closely and in interests our country it cannot be dealt with too harshly if it arises.

Foote

93. Sir Archibald Clark Kerr became Baron Inverchapel of Loch Eck on April 5, 1946.
94. See footnote 92, p. 832.