501.BC Indonesia/5–2948: Telegram

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

confidential

442. Gocus No. 286. It has been experience USDel that in disagreements between Netherlands delegation and Republic delegation on period following creation USI basic issue is question sovereignty USI. Despite statement in Netherlands delegation working paper that union will not be super-state nor its organs form super-government, Republic delegation is fearful that this is in fact far from real Netherlands intentions. In USDel opinion there ample justification such fears on basis certain Netherlands proposals, chiefly:

(1)
That constitution USI will be subordinate to union statute and that constitutions USI and member states must conform to statute. Republic delegation takes position that for USI to be sovereign, constitution USI must be the supreme law of land and that union statute, while having some special characteristics not found ordinary treaties, must, as in case of treaties, conform constitution USI. While Republic delegation recognizes that in their inception there will be no conflict between constitution and union statute, they are concerned that there be no opportunity in future for interpretation that union statute governs in event conflict.
(2)
That in addition disputes between union partners, union court justice will have jurisdiction in disputes involving corporations and individuals, and in disputes between states of USI. Republic delegation takes position that union court justice can have jurisdiction only in matters involving union partners and that to give jurisdiction over cases involving disputes between one member state and another within USI, corporations, and individuals, would be to derogate from authority of courts of USI and pass large measure control to Dutch dominated court outside the structure of otherwise sovereign state. In this connection, provision is made in Netherlands delegation working paper that “the formal binding character of the (financial and economic agreements between Netherlands and USI) will be laid down in union statute.” We of opinion that should union court be given jurisdiction [Page 197] over corporations and individuals, these agreements would in most cases be enforced by union court and consequently this could provide method direct interference in USI internal affairs such as taxing power, labor law, anti-monopoly laws, regulations, et cetera.
(3)
That defense USI be integrated through a common union defense authority originating from council union ministers whose task, according Netherlands delegation working paper, will be promote common defense interests and ensure lasting cooperation. Moreover, Netherlands delegation working paper appears indicate USI army will be vested in union. Both points at variance Republic concept exercise full responsibility for defense by USI.

In dealing with current problems such as Republic’s foreign relations, USDel has found that it is seriously handicapped not being able reassure Republic on above specific questions concerning limitations sovereignty USI. USDel would be able more effectively to deal with Republic if it could indicate US support for Republic position on above questions.

Department’s comments urgently requested. Department pass Hague.1

Livengood
  1. This was done on May 31.