374 Critchley to Department of External Affairs

Cablegram K304 BATAVIA, [4 May 1949], 6.25 p.m.

IMMEDIATE PRIORITY CONFIDENTIAL

The Netherlands delegation has rejected the Republican drafts of the compromise statements (see K.303 [1]) and has now submitted the following amendments:-

(a) Republican statement-addition of 'in accordance with the "Renville principles [2]" after the phrases 'complete sovereignty to the U.S.I.'. Substitution of 'insist' for 'urge' in the last sentence of the statement.

(b) Netherlands statement- Paragraph (1) addition of 'and to advise on measures to be taken in order to effectuate the cessation of guerilla warfare and co- operation in the restoration of peace and the maintenance of law and order'.

Paragraph (2)-last half of the paragraph beginning 'in the area' is changed to 'consisting of the city of Djokjakarta and its immediate environs and that this step be taken in the light of the Security Council's directive [3] of March 23rd, 1949'.

(3)-this paragraph omitted.

(4)-'The Netherlands Government insists on the right of self- determination of the Indonesian peoples as recognised by the principle and underlying articles 3 and 4 of the Linggadjati agreement [4] and by the second and sixth of the twelve, and fourth and sixth of the six additional 'Renville' principles.

Pending negotiations concerning the implementation of the Security Council's ruling of 23rd March 1949 and those to be conducted at the Round Table at The Hague, the Netherlands Government will, however, refrain from the establishment of new Negaras and Daerahs on territory under Republic control prior to December 19th, 1948 and from the expansion of Negaras and Daerahs affecting the said territory, unless agreed upon by the Republican Government and the B.F.O.' [5]

(5)-substitution of 'member state' for 'entity' and insertion of 'provisional' before 'representative body'. Last sentence from 'there shall be etc.' changed to 'this number will be one half of the total membership exclusive of Republic membership'.

(6)-Omitted.

In addition, the Netherlands Delegation has suggested but will not insist on the following new paragraph 'With a view to what is stated in the Security Council ruling of March 23rd 1949, on the subject of the proposed round table conference at The Hague 'to end that negotiations contemplated by the resolution of January 28th, 1949, may be held as soon as possible' the Netherlands Government is fully prepared to do its utmost that this settlement take place immediately after the return of the Republican Government to Djokjakarta.

At this conference, a beginning should be made with consultations as to the way in which-as was already mentioned in the Netherlands Government's invitation to President Soekarno-'a transfer of sovereignty accelerated as much as possible' can be realised. As was stated in the above-mentioned invitation, this implies that the Netherlands Government will gladly 'examine on its merits, in joint consultation with the parties concerned, every proposed solution submitted by one of the parties in order to reach in open, multilateral discussion the common goal: a just and lasting settlement of the Indonesian dispute and accelerated unconditional transfer of the complete sovereignty in accordance with the Renville principles'.

2. The Republican Delegation has expressed considerable concern at the Dutch draft, which embodies the old double talk of the 'Palace clique'. They will certainly reject it and will probably now seek to formalize their position with the Commission. The Netherlands Delegation has not yet submitted its final proposals to its Government, and, therefore, is not yet in a position to take a final stand.

1 Document 373.

2 Document 22, 23 and 24 in Volume XIII.

3 See Document 312.

4 See Appendix I in Volume XI.

5 The previous sentence has been amended with reference to a copy on file AA : A4968/2, 25/9/3, ii.

[AA : A1838, 854/10/4/3, v]