INDONESIA

Prime Minister made statement to States General yesterday. English
translation goes in next bag.

2. Principal points are
(a) Creation by Royal decree new collegial body to jointly perform
task of Lieut. Governor General and consisting of Lieut. Governor
General as chairman and two members-probably NEHER and
VREDENBURCH-to be appointed by the Crown and consulted on all
matters concerning general interest of realm.

(b) Formation of interim government is proceeding and government
has intention of developing Netherlands Indonesian Union.

(c) The Republican Government, it is hoped, would join other
states on equal footing in making interim government a reality.

(d) Implementation of cease fire order was essential before
political discussions could take place with Republican Government.

It must be within a reasonable time and not involve evacuation of
territory under Dutch control.