Ministerial Dispatch 2/1948 BATAVIA, 21 January 1948

SECRET

I have the honour to report that the general feeling since the
signing of the truce agreement between the Dutch and Republicans
is of wondering what is going to happen next, rather than any
great relief and jubilation at the results obtained.

2. There is no doubt that the present Republican Government has
staked all on the work and advice of the Committee of Good
Offices, and this has resulted in at least a mild upheaval in
Republican circles on the signing of the truce agreement. [1]

3. The more or less Dutch terms of the agreement seem hard to the
Republicans, but on the other hand there are many Republicans of
good standing and intelligence who consider that if the political
principles agreed upon are carried out faithfully and with
sincerity by the Dutch the Republicans will win out in the end. I
think it is realised how essential it will be for the Committee of
Good Offices to remain in being and be able to enforce the proper
implementation of the accepted principles.

4. The Dutch authorities are viewing, as a 'flagrant violation' of
the first of the six additional principles accepted, the decision
of the Republican Parliamentary Working Committee to approve the
draft bill in connection with the Republican-Egyptian Treaty of
Friendship. The principle is 'that sovereignty throughout the
Netherlands Indies is and shall remain with the Kingdom of the
Netherlands until, after a stated interval, the Kingdom of the
Netherlands transfers its sovereignty to the United States of
Indonesia. Furthermore, the status of the Republic of Indonesia
will be that of a state within the United States of Indonesia.'
The Republicans, on the other hand, consider that there is no
reason to break off or cancel any friendships already established
and also state that the Treaty will be placed before the Federal
Government of the United States of Indonesia, when formed, for
general ratification.

5. Dr. van Zeeland left Batavia for Holland on 19th January. The
day before we had a morning's shooting together and he was very
frank in his talk with me. Van Zeeland told me that he was really
going to place the exact political and military position before
the Dutch Government and press for sincerity and understanding in
dealing with the Republican point of view. If he is sincere, and I
think he is, his visit to Holland will be of benefit.

6. Dr. van Zeeland asked me if he could let it be known to my
Government his sincere appreciation and admiration of Mr. Justice
Kirby for his great work, particularly during the most difficult
last week leading to the truce agreement when Judge Kirby was
Chairman of the Committee. He also expressed admiration for what
he called the 'solid work' of Brigadier Neyland.

7. I have learnt that the Canadian Government is intending to
establish in the near future representation in Indonesia. It is
quite probable that Mr. Cosgrove, a Canadian who was in the Indies
prior to the last war, will be appointed to a diplomatic or trade
post here. This, together with the aerial mapping of the Indies by
the United States, as reported in a Departmental Despatch [2],
gives an indication of the interest America as a whole is taking
in Indonesia.

8. I consider that my plan, submitted in a Departmental Despatch,
for the establishment of an Australian Information Bureau and
Trade Commissioner's office should be approved and implemented at
an early date. [3]