Departmental Dispatch 24/1948 BATAVIA, 4 August 1948

SECRET

GENERAL POLITICAL SITUATION

Reference: Consulate Telegram No.185 dated 24/7/48. [1]

The resolution of the Bandoeng Conference has now been made public
and a copy of the resolution as reported by the Republican Press
Review is attached hereto. It seems reasonable to assume that a
conflict between the States represented at the Conference took
place with a result of the right wing States forcing the final
resolution which although aimed for an early sovereign Federation
of Indonesia was against certain Republican principles and would
thus necessitate Republican rejection. This has now occurred.

2. Dutch political policy in spite of the Committee of Good
Offices has now divided Indonesia into three camps which can be
played against each other. Firstly there is the Republic always
anti-Dutch and now violently so. Secondly the block of States
comprising Riouw, Bangka, Billiton, Greater Dajak, West Borneo,
South Sumatra and East Sumatra led by the East Sumatran Prime
Minister Dr. Mansoer. The leaders of these States are pro-Dutch
and willing to submit to the Dutch plan for the future
independence of Indonesia. It is significant that this block of
States can be bolstered up in number by any new state or
autonomous area which can be created by Dutch decree. Thirdly the
block of States comprising East Indonesia, West Java, Madura,
South-East Borneo, East Borneo and Bandjar led by Anak Agoeng Gde
Agoeng, the East Indonesian Prime Minister. This third block
although willing to cooperate with the Dutch direct in obtaining
independence require full sovereignty by 1/1/1949 which is also to
include the Republic.

3. The resolution which was handed to the Provisional Federal
Government, the Lt. Governor General, the Committee of Good
Offices and to the Republican Government has now been taken to the
Dutch Government at The Hague by Dr. Bahrioen, chairman of the
'conference of heads of states and premiers of the component
states' at Bandoeng together with the East Indonesian premier Anak
Agoeng Gde Agoeng, West Java (Pasundan) premier Adil Puradiredja
and Sultan Hamid II with their secretaries and advisers.

4. The Republic has therefore now received a severe set back from
their own countrymen in respect to their direct negotiations with
the Dutch under the auspices of the Committee of Good Offices and
realise the strong position the Dutch are in to force a plan for
the independence of Indonesia with or without the Republic.

Republican high officials realise too that the Dutch in their
present strong position combined with their hatred for the
Republic may take extreme political measures directed towards its
liquidation and that little or no assistance to their cause can be
forthcoming from the latest resolution of the Security Council.

The present hope of the Republic is that the new American member
of the Committee of Good Offices, Mr. Merle Cochran, will arrive
in Indonesia with a reasonable plan agreed to by the State
Department and The Hague which both sides would be forced to agree
to.

5. If a solution for the Republic is not forthcoming at an early
date their present internal position cannot be maintained
indefinitely and future chaos within the Republic which may spread
throughout Indonesia is a distinct possibility. Failing an overall
solution the only hope appears for the Republic to be placed on an
agreed independent basis from the rest of Indonesia and the basis
to ensure economic freedom for overseas trade; another difficult
problem as the Republic is without a port outlet in Java.

Attachment

REPUBLICAN INFORMATION SERVICE, JACARTA PRESS REVIEW No. 163.

28th July 1948

Jacarta, July 28. A resolution [2], which was adopted in the
'conference of representatives of the constituent states' at
Bandung, was released yesterday and read as follows: The meeting
of the Federal Conference in Bandoeng, in faith of the bases for
the creation of a federal interim government, which are as
follows:

I. The independent and sovereign U.S.I. shall cover the entire
territory of the N.E.I., without prejudice to the provision
contained in article 3 of the Linggadjati agreement.

II. The independent and sovereign U.S.I. shall be a federation.

III. The Negaras, Daerahs and other constitutional organizations
which are already in existence, including the region for which the
advisory council of South Sumatra has been instituted, shall be
recognized.

IV. The affirmation of the reality that various parts of
Indonesia, including the Republic of Indonesia, have distinct
powers.

V. The recognition of Netherlands sovereignty so long as the
independent and sovereign U.S.I. has not yet been created.

VI. The recognition of the Renville principles.

Have decided upon the following resolution and conclusion:

A. Resolution:

1. The creation of a Provisional Federal Government is an
imperative necessity.

2. The Provisional Federal Government shall be the forerunner of
the government of the sovereign U.S.I.

3. Therefore, said government must be composed of Indonesians.

4. Furthermore, the powers of the Provisional Federal Government
should not be
limited to a greater extent than is necessary for the
responsibility of the Netherlands, which is derived from the
sovereignty of the Netherlands during the interim period.

5. In view thereof, the entire sphere of governmental powers
should be divided into:

a. the sphere of powers of the Netherlands government,
b. the sphere of powers in which the Prov. Fed. Govt. will be
bound by the limitations resulting from the continued sovereignty
of the Netherlands,
c. the separate sphere of powers of the Prov. Fed. Govt. itself,
d. the sphere of powers of the component of areas, including the
powers of the autonomous areas.

6. Within the sphere referred to in par- 5 sub a. the Netherlands
government shall cooperate with the Provisional Federal Government
to make the preparations for the transfer of sovereignty of the
U.S.I.

7. The limitations referred to in par. 5 sub. b. only concerned
the guarantees for the development of the U.S.I. as a
constitutional state.

8. There shall be a High Commissioner for the Netherlands in
Indonesia, who shall be entrusted with the tasks related to and
resulting from the responsibility of the Netherlands as set forth
above.

9. For the duration of the interim period there shall be
instituted the following organs:

a. A government in the form of a directorium.

b. The head of the Departments, who are called the State
Secretaries.

c. A federal council.

d. A representative body.

10. The directorium. shall be composed of at least three
Indonesians. The members of the Directorium shall be appointed by
an assembly of representatives of the component states, including
the region of the advisory council of South Sumatra, and in which
each component state shall have one vote. The appointment shall be
subject to the approval of the Crown.

11. The State Secretaries shall be appointed and dismissed by the
Directorium and shall be responsible to that body.

12. The Federal Council shall be composed of the heads of the
governments or the governmental bodies of the component states,
including the region of the advisory council of South Sumatra, or
their deputies.

13. The delegates to the representative body shall be selected by
the component
states themselves. It is understood that in selecting the
delegates the democratic procedure shall be followed wherever
possible.

14. The disparities which exist between the component states shall
find expression in the number of delegates for the various
component states with the proviso that the strength of population
shall not be the sole determinant of the number of seats.

15. In determining the number of seats for each component state,
it shall be fixed in advance, that each component state shall be
assured of at least two seats, which number can be increased up to
ten seats. It shall be regulated in such a manner, that each
component state, having a population of 1-20,000 souls, shall have
two seats, being the minimum number; and further, either
a. for each 15,000-300,000 souls increased with one scat, with a
maximum total of 10 seats. or:

a. for the first 150,000-300,000 souls, one seat added.

b. for the additional 250,000-500,000 souls, one seat added.

c. for every additional 500,000-1 million souls, increased with
one scat, until the maximum number of 10 seats is reached. or:

the application of another scale, to be determined later, and
which shall be a compromise of the systems set forth above.

16. The representative of the minorities in the Representative
Body shall be regulated by the Provisional Federal Government with
due regard to par. 8 of this resolution and sub 5, of the above-
mentioned bases.

17. The Directorium shall be vested with executive powers, with
the proviso that with regard to principles to be enumerated
afterwards, as for instance matters related to the constitution of
the federal states, the approval of the federal council is
required.

18. Within the executive powers are also included: the initiation
of a Constituent Assembly, the creation of the Federal Armed
Forces, the establishment of a Foreign Service, and also the
opening of discussions with regard to the establishment of a
sovereign U.S.I., keeping in mind the limitations as contained in
par. 5 sub d.

19. The Directorium is responsible for its policy to the
Representative Body, with this provision that this body cannot
force the Directorium to resign.

20. The Federal Council is vested with the powers to advise,
whether at the request of the Directorium or on its own
initiative.

21. The Representative Body is vested with the powers to cooperate
in the making of laws and to determine the budget. This body has
the right of initiative, the right to amend and the right of
interpellation.

22. The Representative Body cannot be dissolved.

23. If, with regard to a bill, an agreement is reached between the
Directorium and the Representative Body, the Directorium is
entitled to enact such a bill on its power and responsibility,
provided that the approval of the Federal Council is obtained.

24. There shall be Dutch-Indonesian bodies of liaison, founded on
parity of members of both parties.

25. The above bodies of liaison shall in any case be set up for
defence, foreign relations and for economic and financial affairs.

26. These bodies of liaison are non-political of character, but
consist of experts who must advise the Directorium and the High
Commissioner with regard to the exercise of powers as referred to
in par. 5 sub a and b.