856E.01/6–1347: Telegram

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

secret

232. Following are comments on Indo reply to Dutch note of May 27: Preamble contains inaccuracies, evasions and insinuations alleging illegal actions by Dutch and demands Netherlands Government countermand “measures taken contrary to spirit Lingga Agreement” [but in no place?] refers to or admits similar acts by Indos. It states Dutch constantly crossed demarcation lines and permitted separatist movements to go unchecked but makes no mention of violations of truce by Indos. Fact is while Dutch did not interfere with separatist movement in Buitenzorg they protected Indo authorities against possible acts by Indonese [Ambonese?] and prevented similar movement in Batavia. Note also says Dutch have arrested leaders, detained people on inadequate grounds, searched journalists and prohibited flying Indo Red White flag and singing Indo national anthem. Facts are Indo leaders permitted visit Batavia freely where they not detained, journalists do not criticize Republic authorities for fear internment or far worse.

Close analysis note shows it is bid by Republic for control of proposed Interim Government in all NEI. It proposes at least one-half Interim Government be republic officials and decisions of Interim Government be by majority of votes. This impossible if Republic controls 50% of government unless decisions favor Republic. Note proposes that position of Governor General be abolished in favor of High Commissioner but gives no authority to him except where Netherlands interests are concerned. It states decisions Dutch-Indo delegations be executed by Interim Government. This apt cause deadlocks and gives no method to break them.

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Re military matters, note provides both Dutch and Indo armies leave demarcation areas and retire to garrisons. Such would leave these areas at mercy of private armed groups. Also says formation army forces in states not part of Republic be done by Republic and other states on one hand and Netherlands on other.

Foreign Exchange Board to be responsible to Interim Government which cannot have majority since 50% to be Republic. Board of Management for Foreign Exchange to consist of five from Republic and five from other states in Dutch, [sic] again making majority impossible. Foreign exchange fund to satisfy principal wants of people but 50 millions of these in Java. This would leave little or nothing to meet want peoples other states. Purchasing goods abroad to satisfy needs of all Indonesia to be under Republic supervision.

Re exportation European estate products, Board of Management according Indo note to be composed of four Republics and three for all other states.

Re Central Foodstuff Board, three to come from Republic, two from East Indonesia and one from Borneo, again making decision impossible except when favors Republic. In case deadlock, Interim Government to decide ban Interim Government for all Indonesia would be at least 50% Republic, again making majority impossible.

In brief, note is carefully prepared attempt to seek power and control over all Indonesia. Too early obtain Dutch reactions.

Foote