101 Ballard to Department of External Affairs

Cablegram 200 BATAVIA, 28 June 1947, 12.30 p.m.

IMMEDIATE SECRET

Following is summary of Republican reply signed by Soekarno.

1. Owing to the resignation of Sjahrir Cabinet, Soekarno assumed powers of Government from June 27th.

2. From the aide-memoire of June 23rd [1] the Republic notes the Netherlands intention to implement Linggardjati peacefully.

3. The Republic reaffirms its similar intention.

4. (Available translation is not clear but the following seems to be the meaning.) It is to be assumed that the agreement has been reached on the question of interim Government.

The following examples are cited:-

(A) The major problem of implementation of Linggardjati to be handled by two Delegations.

(B) The Interim Government to be set up as soon as possible, no objection to representatives of the Kingdom of the Netherlands having a seat.

(C) De facto power of the Republican Government to be exercised by Republican organs.

(D) The first task of the Interim Government is to set up a Federal Organ.

5. Composition of the Federal Organ must be a matter for discussion in the Interim Government, i.e. between all prospective Federated States. Subject to such discussion the Republic can agree with the organ proposed by the Dutch note subject to reservation concerning directorate for internal safety.

6. The Republic endorses its letter of June 23rd. [2]

If the Netherlands Government intends to entrust guarantee for peace and order in Republican territories to a joint Gendarmerie the Republic will reject it.

The Republic is prepared to cooperate federally with respect to guarantee for internal safety, such cooperation should be based on responsibility of each Federated State for these problems.

7. With due regard to the foregoing the Republic will participate in abolishing the demarcation line and the withdrawal of troops to respective garrisons. Relief to be expected from these steps depends on strict implementation of the joint proclamation of March 29th. [3]

8. Interim Government will be responsible for organising defence of Indonesia. The Netherlands proposals which have been agreed to in principle by the Republic may serve as a basis.

9. The Republic is convinced that such an agreement on cooperative implementation of Linggardjati has been achieved as to make a beginning of practical execution possible.

10. Such practical execution could be greatly expedited by taking of steps by both sides calculated to restore mutual confidence such as mutual reduction of troops.

The Republic is prepared to do this and urges the Netherlands side to do the same.

11. 'The Government of the [Republic] [4] is of the opinion that by acceptance of the Netherlands proposals in the above mentioned ways the moment has come for Indonesia to participate as a whole in the world traffic and to begin reconstruction.'

1 See Document 100, note 1.

2 See Document 95, paragraphs 3-6.

3 This is presumably a reference to a joint Dutch-Indonesian communique which announced agreement on conditions for the demilitarisation of Modjokerto.

4 Amended by hand. The text originally read: 'Netherlands'.

[AA:A1838/283, 403/3/1/1, vii]