My telegram 5th June D NO. 499. [1]

INDONESIA

The United Kingdom Consul-General, Batavia, visited Djokjakarta on
June 7th and had extremely friendly and apparently successful
secret interview with Dr. Soekarno at which Dr. Sjahrir was also
present.

2. The United States State Department have sent instructions to
the United States Consul-General, Batavia, to take similar but not
simultaneous action and the United States Consul-General will
doubtless visit Djokjakarta. The State Department have agreed with
us that no publicity shall be given to either of these visits.

3. The United Kingdom Consul-General spoke to Dr. Soekarno on the
lines indicated in Paragraph 3 of my telegram D NO. 499 and added
further remarks on the world economic aspect of the situation in
Indonesia which we think may not be fully realised in the remote
atmosphere of Djokjakarta. He pointed out to Dr. Soekarno that
delay in reaching agreement was preventing the economic recovery
of Indonesia and impeding the flow of vital commodities of which
the world stands so sorely in need; the Indonesians had from time
to time admitted that their communications were chaotic and
transport lacking and no doubt it was largely because of this that
they had only delivered a fraction of the rice promised to India.

The economy of Indonesia could not be re-established to its own
benefit or to that of the outside world without political
stability and the Indonesians would certainly not wish to appear
to be responsible for any unnecessary delay in reaching
settlement.

4. Dr. Soekarno said he welcomed this advice and the frank and
informal manner in which it was conveyed. He had always felt that
the British Government and people while maintaining loyal
friendship with the Dutch were deeply sympathetic to the
Republican movement. He assured the Consul-General that his reply
to the Dutch would be conciliatory and positive. He stated that he
was inclined to decide that the proposals (outlined in my telegram
D No. 492 [2]) as a whole should be accepted in principle. But he
thought that on some points discussion and/or clarification seemed
desirable, e.g. Military co-operation and Foreign Representation
(which Sjahrir believed should soon be on an All-Indonesia Federal
basis independent of, but cooperating with the Dutch Foreign
Service). The principle cause of Indonesian hesitation, Soekarno
said was the distrust of Dutch reactionaries and Military officers
and the fear that these elements would regard the agreement as a
sign of weakness and spring a Military coup. Sjahrir said that the
Dutch statement and actions were not always in line and he
instanced the Sundanese Separation Movement (my telegram D No. 466
Paragraph 8(A) [3]) which he said was disavowed by Van Mook but
undoubtedly supported by the Dutch Army.

5. According to information received from the Ministry of Foreign
Affairs at The Hague the Commissioners-General who left Batavia
for Holland on May 25th to report to their Government were due to
return to Batavia on June 8th in order to be on the spot when the
Indonesian reply to the proposals is received.

6. The Dutch Ambassador in London has been informed of the general
sense of the instructions sent to the United Kingdom Consul-
General, Batavia, and the opportunity has been taken to emphasise
to him again (see Paragraph 1 of my telegram D No.468 [4]) the
deplorable effect which a breakdown of negotiations and any resort
to force by the Dutch would have in this country.