Reference my C.26. [1] The Debt Commission has recommended
(a) that as of the date of transfer of sovereignty from the
Kingdom of the Netherlands to the Republic of the United States of
Indonesia the latter assume responsibility for the debt comprising
(A) the consolidated external debt calculated as of December 31,
1949 at 871 million guiders,
(B) the debt to third countries calculated as of December 31, 1949
at 420 million guilders,
(C) the following items in the external floating debt calculated
as of December 31, 1949 to the maximum amounts indicated:

1. Swing British Monetary Agreement account F53.5 million
guilders,
2. Swing C account 40 million guilders,
3. HI/HG account 80 million guilders,
4. Bretton Woods (opposite this is an asset of the same amount as
participation in Interfund and Interbank) 95 million guilders,
total 1,559.9 [2] million guilders.

(b) That the Government of the Republic of the United States of
Indonesia assume responsibility for both interest and amortization
of the debts covered by items (A) and (B) and take over the rights
and liabilities under existing agreements for items listed under
(C).

2. The foregoing involves a reduction of the external debt due to
the Netherlands by the sum calculated as of the 31st December 1949
of two billion Netherlands guilders. The internal debt at the date
of the transfer of sovereignty is to be assumed by the R.I.S.

3. No undertakings or escape clauses are mentioned. Although the
report states that consideration has been given to the amount of
'extra military expenditures and other expenditures attributable
to military action' no figures have been or will be given in
support of the recommendation.

4. Unanimity was achieved at the cost of committing any
recommendation for a moratorium on interest and amortisation which
was strongly opposed by the Netherlands representative.