Political committee met Wednesday afternoon to receive report of
ad hoc subcommittee established on March 31st to consider working
papers on United States of Indonesia and on 'general views on
settlement of the dispute between the Netherlands and the Republic
of Indonesia'. [1] The political Committee agreed on the
following: (1) No agreement to be concluded before understanding
is reached on all matters to be included in the agreement.

(2) Draft agreement will be submitted to both Governments.

(3) No signing of agreement before authorization is given by the
two Govern-ments.

(4) No specific order of Credence in discussion of items.

Interrelated items will be discussed in parallel.

(5) Committee of Good Offices to suggest sub-committees (three
might be sufficient) to deal with 14 items referred to the
Political Committee by the Steering Committee. [2]

(6) Parties may agree on another method of popular consultation
instead of views of the plebiscite.

(7) Both parties think federation and union should come into
existence at approximately the same time while the answer to the
question as to whether the establishment of Union and Federation
should coincide was left to juridical theoretical discussion.

In order that the Netherlands Indonesian Union and the United
States of Indonesia may come into existence both delegations will
consider how far it is possible to combine:

(a) the determination of whether populations of various
territories in Java, Sumatra and Madura wish their territory to
form part of the Republic of Indonesia or of another State within
the United States of Indonesia.

(b) the election of constituent assembly and
(c) the election of representatives of the people.

(8) It is agreed that the United States of Indonesia shall be a
sovereign independent and democratic state on a federal basis.

(The Netherlands delegation wishes it to be understood that the
foregoing does not prejudge interdependence to be established in
the Netherlands Indonesian Union.

(9) Participation and membership in the United States of Indonesia
open to any territory in Indonesia expressing such desire by
democratic procedure.

(10) The head state of the United States of Indonesia shall be
elected by democratic procedure.

(11) The member states of the United States of Indonesia shall
have a democratic form of Government.

(12) The constitutions of member states of the United States of
Indonesia shall contain no provision contrary to the principles of
the constitution of the United States of Indonesia.

(13) Powers of the United States of Indonesia in any case to
comprise management of matters pertaining to
(a) foreign relations
(b) defence
(c) the main economic and financial problems
(d) Netherlands Indonesian Union
(e) relations between member states
(f) provision in connection with (a) to (e) above
(g) such matters as will further be specified in the constitution
on the grounds that they can only adequately be dealt with within
the sphere of federation.

(14) The United States of Indonesia will, by its own organs of
Government, promote general interests of Indonesian peoples as a
nation and common interests of member states and see to all
matters pertaining to mutual relation of member states to be
specified in the constitution with due regard for other articles
of the agreements.

(15) Rights of minorities to be safeguarded.

(16) Fundamental rights and freedoms as provided for in the United
Nations
Charter to be safeguarded.

(17) Indonesian education and culture to be promoted and
developed.

(18) The Legislative Assembly will be composed of two houses, an
upper house, or Senate, which will be composed of representatives
of the member states on an equal basis, and a Lower House, or
people's Council, to be composed of members chosen by the people
of the several member states in proportion to their numerical
strengths.

(19) The Constitution of the United States of Indonesia to contain
safeguards for the proper administration of justice under the
Federal Court of justice, which will ensure the observance of the
Constitution and settle disputes between member states and other
disputes to which a member state is a party. The Constitution will
allow for special administrative arrangements designed to settle
disputes.

2. It was agreed that a number of additional points required
further discussions and that some points of detail in the working
papers should be left for decision by the Constituent Assembly.

3. No agreement was reached on the following points:

(1) Authority during the interim period.

(2) Transfer of rights, duties and responsibilities by
Governments.

(3) Foreign relations by the Republic.

(4) The date of the plebiscite.

(5) Territories involved in the plebiscite.

(6) The question whether the United States of Indonesia shall be a
national state as an expression of the rightful self determination
and self government of Indonesian people.

(7) Status.

Van Vredenburch endeavoured to have some of these matters
discussed with the committee [3] immediately, in particular items
three, four and five. In the case of Foreign relations he said
that he was seriously concerned at information he had received
over the last few days that the Republic intended to extend its
foreign relations. (Burma is probably important case in point).

Roem. assured the Netherlands delegation that he would discuss
with Hatta on his return from Boekit Tinggi the possibility of
giving a guarantee that foreign relations of the Republic would
not be expanded at least during the discussions, and his
Government would not take any action which might prejudice the
solution of the plebiscite disagreement. On the latter the
Republican case, which argues that the plebiscite should not be
held in Republican territory is obviously weak.

4. Although Van Vredenburch did not completely give up his demand
for early discussions on the plebiscite it was eventually decided
since only a limited number of matters had been discussed the
parties should press on with further discussions as a means of
widening the area of agreement and in expectation that this
agreement would facilitate the solution of outstanding
difficulties. In the meantime the Good Offices Committee will
consider the matter on which the deadlock had been reached and
seek to help in the solution of these with informal discussions
with the parties. This procedure avoids a pressure on the Republic
before full consideration is given to such important issues as the
Netherlands Indonesian Union.

5. In the course of discussions Van Vredenburch made it clear that
the Netherlands only intends to transfer sovereignty to the United
States of Indonesia at the same time as the Netherlands Indonesian
Union is established.