856E.01/6–2547

Press Release Issued by the Department of State, June 25, 194718

Statement on Indonesia

The United States Government is encouraged by preliminary reports that renewed negotiations between the Dutch and the Indonesians have shown the way towards overcoming the major obstacles to the establishment of an interim government in Indonesia along federal lines.

The area of agreement reported thus far demonstrates the fact that even the most difficult problems can be solved by the exercise of a spirit [Page 959] of good faith and compromise. This Government feels that the Netherlands’ proposals of May 27 were made in good faith, and that they represent a reasonable approach to securing agreement on an effective federal government for all of Indonesia during the interim period pending the constitutional development of the United States of Indonesia and the Netherlands-Indonesian Union. The recent radio address of Premier Sjahrir revealed a high quality of statesmanship and has increased the expectation of this Government that a mutually beneficial settlement will be promptly achieved.

  1. Text was sent to The Hague in telegram 311, June 26, and repeated to London as No. 2743 and to Batavia as No. 170.