501.BC Indonesia/4–2348: Telegram
The Acting Secretary of State to the Consulate General at Batavia
165. For Usgoc 91. Soemitro, representing Indo Rep Banking and Trading Corp, also one of negotiators Fox contract, was advised by Dept officers Apr 21 of Dept’s disapproval Fox contract and acquainted with reasons Dept’s disapproval (Deptel 161 Apr 21). Soemitro, while not agreeing Dept position, said he fully understood it and expressed gratitude frank discussion. Soemitro has on previous occasions expressed his belief Dept controlled by Wall Street financiers. Dept’s position Fox contract obviously surprised Soemitro this connection,
Dept took occasion discuss frankly with Soemitro present reluctance Rep to discuss terms participation interim govt and character psychological impasse, Gocus 224, Apr. 12 [11]. In this connection Dept officers assured Soemitro they entirely convinced Dutch acting in good faith and determined upon strictest compliance Renville agreements. Soemitro identified West Java conference, Madura plebiscites and Dutch repression of free assembly as evidence Dutch lack of good faith. Dept observed West Java and Madura incidents can be judged only on basis of facts which by SC direction now matter for GOC determination and report to SC. In respect of right of free assembly, Dept agreed extremely important for Republic electioneering before plebiscites. Dept reminded Soemitro that upon Rep’s entrance into interim govt, unfettered right of free assembly automatically guaranteed.
Following conclusions drawn from Soemitro’s conversation:
- (a)
- Rep hopes to remain outside interim govt, transferring its attributes of sovereignty only to USI, which it believes it will dominate. Soemitro when pressed, admitted Rep’s obligation under Renville agreements to enter interim govt but maintained that Rep would insist on controlling foreign trade and maintaining foreign reps abroad even while participating interim govt. Dept explained complete practical impossibility such arrangement, to which Soemitro at length appeared to agree.
- (b)
- Rep regards Renville agreements as “a phase” in attainment complete independence. When asked to define “complete independence” [Page 156] Soemitro replied that independent USI was Rep objective and that equal partnership with Neth not excluded Rep concepts. Dept pointed out these precise objectives embodied Renville agreements. Soemitro replied affirmatively “if Renville agreements were honestly carried out”.
Dept maintained throughout conversations that its only interest was in contributing to strictest compliance Renville agreements which in Dept view offered only hope independence Indo people through evolution in remarkably short time and voluntary association Neth and Indos for mutual benefit; assured Soemitro US interest Indo people had no earmarks imperialism pointing to opposition Fox contract as proof.
At end three hours discussion Soemitro, visibly impressed, expressed gratitude frank discussion and stated that he believed US best friend of Indo people which lately he and his colleagues had begun to doubt.
He added that he proposed return Jogjakarta earliest opportunity discuss these matters with Rep Govt.
Sent Batavia as 165 Rptd The Hague as 157.