INDONESIA

The following is our translation of the text of statement issued
today by the Department of Overseas Territories. Official
translation has not been provided. BEGINS:-

It is officially announced that reports emanating from the Foreign
Press Agencies regarding radical modifications in the Netherlands
policy with regard to Indonesia are completely incorrect. There
has never been any question of the Netherlands East Indies
Government conducting a 'Sterile policy of passive resistance to
the Security Council' as was suggested in one of these foreign
reports. Reference is made to clear the performance of Doctor Van
Royen in the Security Council during the debate on the resolution
[1] which has since been adopted by that Council and which from
the N.E.I. point of view was in certain respects unacceptable and
impracticable. It has become abundantly clear that Federal
Indonesia and N.E.I. have in conjunction been able to outline a
constructive policy. The important steps being taken in Batavia-
and not the least in Indonesia circles-with an approach to
attempting rapid realisation of the New Order as between the
N.E.I. and the whole of Indonesia, are being followed with close
interest. A partial transfer of N.E.I. Sovereignty to the Security
Council, which, according to certain press reports from Indonesia
is said to be feared in Federalist circles, has not and will not
be considered. ENDS.

2. Most significant of recent developments appears to be the new
importance attaching to the Federalists, whose conference,
according to Dutch forecasts, is likely to produce today a formula
to serve as a basis for discussions with Republican leaders on the
setting up of an Interim Federal Government.