856E.01/6–247: Telegram
The Ambassador in the Netherlands (Baruch) to the Secretary of State
354. Over the week end general sentiment seems much calmer and more confident that ultimate implementation Linggadjati Agreement possible either with present Indonesian authorities or some replacement. Confidence in Sjahrir as moderate untainted Indonesian statesman seems unabated but Soekarno is looked on almost universally as unreliable, unstable, self-seeking and selfish agitator whose constant efforts to remain on right side of all questions are disastrous.
Steps to start export business on some fair basis from the Netherlands Indies are continuous and most ardently sought, and I believe personally this is of first importance and would help immediately to restore political stability. Someone close to Van Mook told me his one ambition was to remain in the East and put all his efforts behind this latter problem, and though he had been tempted by offer of Washington Embassy post he has been permitted to remain Batavia and devote all his efforts to solving present impasse. There remains, however, large element of opinion here which is unalterably opposed to Van Mook and would like to see him removed. I feel strongly that if Dutch Government’s present efforts fail we will be asked to mediate forthwith unless resort to force is precipitated by ever-present hotheaded minority.
Re London’s 2962, May 29 on Indonesia. In Embassy’s judgment, Dutch note containing proposals for various forms of cooperation to expedite implementation of Linggadjati Agreement seems sound and may well test good faith of Republicans. Considering all aspects of US interests in Indonesia, Embassy believes nothing can be lost and possibly much may be gained by application joint US-UK persuasion on Republicans to accept terms latest Dutch proposals.