Ministerial Dispatch 4/1948 BATAVIA, 18 February 1948

SECRET

I have the honour to report that since the formation of the
Republican Presidential Cabinet the political situation at
Djokjakarta, according to the information I have from Dr. Tamzil
the former Vice Foreign Minister, remains fairly stable, although
the presidential character of the new Cabinet is not popular but
tolerated as a temporary measure. [1] There is talk of the
formation of a new socialist party but on the other hand the
various political factions appear to be supporting, at least
temporarily, the new Cabinet. Sutan Sjahrir, who is still in
Sumatra, recently voiced an appeal for solidarity, and in some
quarters there is still hope that both Sjahrir and Sjarifoeddin
will join up with the Republican Cabinet.

2. The alleged press report issued at Lake Success by the
Committee of Good Offices [2] caused a sensation in Dutch circles
and was the probable reason for Jhr. van Vredenburch proceeding
post-haste to The Hague. The report was well received by the
Republicans. The communique [3] issued by the Netherlands East
Indies authorities with regard to the report has now been revoked.

3. Sir Francis Shepherd visited me yesterday and informed me that
his Govern-ment was worried with regard to the Dutch attitude
towards the arrival of the observer officers, the communique
issued regarding the Lake Success press conference, the Dutch
attitude with reference to the formation of the new Interim
Government, and the possible non-inclusion of fair Republican
representation in accordance with the political principles
accepted in the 'Renville' Agreement. The British Consul-General
told me that his Government might have to take some action in the
matter.

4. Talks between the Dutch and Republican delegations are at a
standstill and I consider will only be resumed when and how the
Dutch authorities wish. Hatta wrote to Van Mook on 9th February
stating his Government's readiness to co-operate in the formation
of an Interim Government and asking that the discussions
concerning this matter might soon commence. However, I understand
that in his reply Van Mook merely quoted the second of the six
political points of the 'Renville' Agreement [4], expressing his
confidence that the Republic would be offered 'fair
representation' and stated that he had referred Hatta's letter to
the Netherlands delegation to the Committee of Good Offices. It
now seems quite possible that the formation of the new Interim
Government will be pushed ahead without Republican participation
or general political negotiations being re-opened. My opinion is
that the Netherlands East Indies authorities have found it so much
easier than they originally anticipated to gain their many points
in the recent talks that they are now inclined to overplay their
hand.

5. Generally speaking, the truce arrangements have gone extremely
well, and the fact that over 25,000 Republican soldiers have
reported to various centres in Dutchheld territory and have been
repatriated without any major incident has greatly surprised the
Dutch.

6. Eight Australian observer officers arrived on 15th February and
six more are due on 18th February. [5] It is not yet clear whether
or not the R.A.A.F. aeroplane is to remain in Batavia, and I wish
to again stress its urgent need by the Committee of Good Offices.

7. Yesterday I had a long talk with the Lieutenant Governor-
General, Dr. van Mook, and he assured me that there was no
question of any blame being attributed to the British or ourselves
with regard to-the despatch of observers without the approval of
the Netherlands authorities but that it was the fault of the
Committee of Good Offices in procedure, which at the time could
not be overlooked.

8. The question of the shipping ban was discussed. There is no
question but that this is a thorn in the Dutch side. His
Excellency described the position as fantastic and said it was
developing into a cancer in respect of the relations between the
two countries. He said he was positive that it would react
unfavourably against Australia in the future. He also stated that
the ban might also affect future proposed reciprocal air services
between Australia and the Netherlands on account of possible
refuelling difficulties for Dutch aircraft. I asked His Excellency
his opinion as to the possibility of officially re-opening the
shipping question through the political delegations and Dr. van
Mook made it quite clear that here was no intention of the
Netherlands Indies Government to re-open the question-his actual
words were 'To go cap in hand'-but that he did hope it would be
re-opened by the Australian Government. The talk, which was at the
Palace and attended by Mr. Eschauzier of the Far Eastern Office,
was informal, frank and made in a pleasant spirit.