501.BC Indonesia/5–2948: Telegram

The Secretary of State to the Consulate General at Batavia

secret

250. Usgoc 105. 1. Dept has seriously considered suggestion penultimate para Gocus 286 May 29,1 that USDel indicate Dept’s support Repub’s position set forth numbered paras 1, 2 and 3 same tel. Dept notes that with respect to 4 basic issues threatening success of negotiations listed Gocus 275, May 21, USDel at that time expressed view that Neth should drop provision giving individuals and corporations right appeal Union court. In Gocus 286, May 29, USDel expresses view that Dept should also accept and support Repub position with respect Union statute in general and USI defense.

2. Dept wishes USDel to continue to regard itself as free agent making such choices on spot as USDel believes will lead to agreement between parties and in accordance with larger interests of United States. As in previous similar circumstances, Dept offers following observations for guidance.

3. Dept considers it essential that in any settlement Neth retain a direct influence in certain specified matters in Indonesia. Such direct influence, if it be consonant with Renville Agreements, can be maintained only via the Union. Dept remains of opinion that Union should be voluntary association with right in each party to secede. This should not be interpreted to mean that Dept views Neth-Indo Union as temporary or ineffective; but rather that strength of Union will derive from its voluntary character as distinguished from its legal prerogative.

4. In Dept’s opinion, Neth and Repub are not called upon to agree on any more than principal outlines of Union structure since, in final analysis, details of Union statute must ultimately be worked out between USI and Neth. Union statute should be formulated in mutual interests of two component partners with constitution of each subordinate to Union only in so far as it is in mutual self interest. Constitutions of both would remain “Supreme law of land” except for any powers specifically delegated to Union and expressly enumerated in Union statute. Accordingly, at outset, USI constitution and Union Statute should form complementary whole, with constitution expressly granting to Union such authority as partners agree upon. Thus, by specific delegation of authority to Union organs, that which is not expressly assigned resides in partners individually and, in event of future conflict, problem of interpretation would be merely construction of what was delegated rather than problem of division of powers. [Page 230] Repub should understand therefore that Union statute will be controlling only in so far as express grants of power are made therein.

5. With respect to issue raised in para 2 Gocus 286, as to whether jurisdiction of Union Court should include individuals and private corporations, as Dept has previously indicated (Usgoc 101 May 27), chief purpose for such provision from our point of view, should be to provide for protection of interest of foreign nationals. We agree with you this purpose could be served in some other way (Gocus 286 and 2972). Dept wishes you to bear in mind however in your capacity as USRep rather than as member GOC that US interests, as indicated in Dept 101, are here involved in that provision should be made under judiciary system in USI for protection of interests of foreign nationals. This could be done through express provision in USI constitution.

6. Dept considers that external defense USI should be integrated through common Union defense authority and that internal defense USI should be responsibility USI. Defense against external aggression against Neth or USI should be responsibility of each partner subject to agreement for mutual defense under authority Union organ which could provide for combined command, joint bases, joint procurement, etc. Thus USI armed forces would perform functions of (1) maintaining internal security USI and component states; (2) resisting external aggression against USI and component states; (3) serving as component part of Union forces under direction Union defense authority in accordance with agreement in Union statute for mutual defense USI and Neth. Dept assumes that reference in para 3 Gocus 286 to defense of USI means defense component states from external aggression. If this assumption correct, Dept believes responsibility such defense should properly rest with Union.

7. Dept has always considered, both under Linggadjati and under Renville Agreements, that arrangements for interim period were to serve 2 desirable purposes. (1) Dutch, as sovereign, were to retain sufficient governmental authority throughout NEI to permit them to regain possession of and to rehabilitate their economic interests there, as well as to provide stability requisite to resumption normal international trade which incidentally would facilitate US program for ERP. (2) Such rights, duties and responsibilities were to be conferred on provisional federal government as to enable both Repub and non-Repub leaders to acquire requisite governmental experience and to provide both with opportunity to rediscover mutual dependence through cooperation with each other prior to transfer of sovereignty. Dept believes that 7-point program set forth Gocus 275 provide suitable [Page 231] procedure for meeting above basic purposes of interim period. As we see it, special merit of program is that it would utilize election procedure throughout Indonesia to provide distinction between March 9 government and provisional government contemplated principle 1 of 6 additional Renville principles. However, crux of program will depend, of course, on substantive content of provisional government’s authority. Dept does not believe Dutch will consider first of 2 purposes listed above can be met if sovereign’s authority during interim period is limited to Governor General’s veto as appears implicit paras II C and D Gocus 292.3 Dept would therefore appreciate having from USDel soonest its view as to what specific responsibilities should be conferred on provisional government to meet both basic purposes interim period.

Sent Batavia as 250, rptd The Hague as 228.

Marshall
  1. Telegram 442, p. 196.
  2. Latter as telegram 466, June 3, p. 210.
  3. Telegram 459, June 1, p. 203.