856E.00/10–246: Telegram
The Consul General at Batavia (Foote) to the Secretary of State
rush
[Received October 2—4:06 p.m.]
392. In long talk with Sjahrir today he voiced great optimism re agreement in near future and said basis of talks to begin October 7 [Page 847] would be Dutch proposals of March 26 (my despatch 32, April 1717) and Indonesian counter proposals of last June (my despatch 66, June 2318). He said Dutch now more reasonable than before and more interested in economic than political side of picture. Study of two documents cited above confirms second paragraph my telegram 390, October 1, to effect that recognition of Indonesian Republic to be followed by “signing of covenant between Netherlands and Republic” which would protect Dutch economic and other interests here and regulate relations between Republic on one hand and Netherlands and other parts of NEI on the other. Sjahrir said he more hopeful than ever before.
To my questions re continued obstinate reports that new republic would nationalize industries, Sjahrir said such reports completely false. He said I might report to my govt that Indonesian Republic has no intention of adopting such radical measures and that he and his colleagues merely follow Thamrin’s policy that more of profits of industries remain here and not all be exported as during past and that big business should carry more burden of govt than heretofore.
Sjahrir asked me to visit him often so he might keep me informed all developments. Killearn also sees me daily to give fill-in.