109 Ballard to Department of External Affairs
Cablegram 217 BATAVIA, 8 July 1947, 11.50 a.m.
My telegram 216. 
As may appear already from our note of June 27th 1947  the Government of the Republic have no objection that the Representative of the Kingdom of the Netherlands be a Member of the Interim Government to be constituted as quickly as possible.
The acceptance of the Representative of the Kingdom of the Netherlands proves the willingness of the Republic to find a common ground on which diverging viewpoints of both parties can be quickly brought together. The Government of the Republic have no objection to a special position for the Representative of the Kingdom of the Netherlands. We can follow the desire of the Netherlands Government to grant her Representative a de jure deciding authority; the Republic however having been recognised by the Netherlands Government should obtain a position in conformity with its de facto recognition according to the Linggadjati Agreement.
In connection with the above, the matter of Netherlands sovereignty during the transition period should be solved in agreement with what has been established with regard to the position of the Representative of the Kingdom of the Netherlands.
With due observance of the terms formulated under point (c) of the note , to your Excellency, of the President it must be clear that the de facto authority of the Republic can serve for guidance of the Netherlands Government the more so as this de facto authority of the Republic has already obtained a place and found recognition in international relations.
From your last letter  the Republic Government understands the de facto authority of the Republic as described above is a reality which cannot be ignored. The recognition of de jure Netherlands sovereignty during the transition period which has to end at the latest on January 1st 1949 should not in the opinion of the Republic Government close the road to further negotiations concerning international relations.
This recognition is coupled with the condition sine qua non that after the transition period the fully sovereign United States of Indonesia shall be effectively established. in connection with the above the Republic Government have no objection in principle, with regard to the regulations pertaining to foreign relations, to the adaptation of those relations to what has been established concerning the position of the representative of the Kingdom of the Netherlands.
With regard to internal order and security the Republic Government maintain the point of view described in their note of June 27th.
The Republic Government point out again that they agree to the formation of a central body for control of internal security of which representatives of the several states will be members. In the opinion of the Republic Government apparatus to be used should be a constabulary of each of several states only to be used inside the states concerned. The federal co-operation should find its embodiment in common control of the central organisation.
Concerning restitution of property of non-Indonesians it may be explained that such a restitution as proposed in the note of May 27th 1947  can be agreed to with the exception of what has been said in that note about the safeguarding of persons and their property. The Republic Government remain of the opinion that restitution should take place in an organised way whereof procedure can be further discussed.
As soon as mutual agreement has been reached with regard to the interim Government the Republic will take measures to remove the impression that the Republic aims at extending its authority outside the territory.
The Republic Government are of the opinion that with regard to other problems a solution can be obtained seeing mutual agreement has been reached about de jure deciding authority representative of the Kingdom of the Netherlands.
The Republic Government reaffirm their hope that through a decrease in armed forces on both sides the atmosphere of mutual trust will return so that a solution of important political questions can be achieved.