356 Hood to Department of External Affairs
Cablegram 367 LONDON, 31 October 1945, 8.20 p.m.
INDONESIA Reference my immediately preceding telegram. 
The Netherlands Government recognise the legitimate aspirations of Indonesians towards a national existence, and are convinced that these aspirations can be realised by a process of evolution through friendly co-operation between the Indonesians and the Netherlanders.
Their general purpose is therefore the rapid development of Indonesia as a partner in a Kingdom which will be constructed to guarantee the national self respect of all member peoples. To that end the central government of this country will have to be reconstructed by legal process in such a way that it will consist of a democratic representative body, with a substantial majority of Indonesian members, and a council of ministers under the Governor General as representative of the crown. This organisation will govern the internal affairs of the country assisted by subordinate organisations to take care of regional and local public interests. The suffrage shall be a subject of further consultation, but it will have to rest on the foundation of a freely shaped public opinion, and of an adequate representation for all important sections of the body politic.
In the Government of the Kingdom, Indonesia shall take its part in the manner to be proposed by round table conference, and to be decided on by constitutional authorities of the Kingdom. Problems like that of a regional flag besides the flag of the Kingdom, will also have to be decided on recommendations of the same round table conference. The admission of Indonesian and other non-Dutch citizens to general services of the Kingdom such as the Foreign Service, shall be systematically increased forthwith. Regulations and institutions based on radical [sic] discrimination, or considered as such, shall be abrogated or reformed. The distinction between a Netherlands and an Indonesian civil service shall be abolished. The admission of citizens of non Netherlands origin to the highest posts in all public services will be vigorously extended, and full mutual co-operation ensured. It will also be necessary to find a place for Indonesians and other non Netherlands citizens in staffs and managements of business.
The educational system will have to be reformed in such a way that illiteracy is eradicated as rapidly as possible, and that it can offer to the inhabitants every form of training needed by the community. The Indonesian language and other important native languages will be systematically developed for modern use in order to make them fully serviceable for the needs of cultural, social and economic life. Recognition of the Indonesian language as the official language besides Dutch will be made complete.
Economic policy will have for its objective, rehabilitation and extension of general prosperity of the population. Room will be made for development of business of every size for all race groups and participation of Indonesians, Indo-Chinese and Indo-Arabs in big business will be furthered by all means, including industrialisation. An increased production and an improved distribution of income will be pursued, and expansions to capital will be vigorously advanced. An efficient cooperation with Netherlands and with other countries will strengthen the base of this policy without influencing its aim.
A strong armed force will be built up on a base of popular service, implying duty of every citizen to contribute to, and right of every citizen to take part in, defence of the country.
Reconstruction of Indonesia can only be attained by a real cooperation between its citizens of different race, and between the Netherlands and Indonesia who are far stronger together than apart. That reconstruction will have to be quickly taken in hand as other-wise debts, impoverishment and lawlessness will grow to such an extent that recovery may hardly be possible.
It is urgently necessary that the reconstruction of Indonesia is started as soon as possible. Present dissensions carry the country ever nearer to chaos, which neither the people nor international world can tolerate. The moment has come for all who want to undertake work of reconstruction to join hands. Moreover, as it is the intention of the government to convene the round table conference at the earliest possible date, it is doubly necessary to restore order to enable us to proceed with nomination of representatives by a general consultation that is free of threats and intimidation.