INDONESIA

WEAKENING OF NETHERLANDS ATTITUDE

Since the beginning of the year the Netherlands' actions have been
remarkably inconsistent with what was surely the object of the
second Police action, namely, liquidation of the Republic and its
leaders. First they freed Sjahrir and then they allowed the
Republican Delegation in Batavia to function. They permitted
Sukarno and Salim to proceed to Bangka, freed the Republican
leaders there, provided facilities for the Committee of Good
Offices and United Nations Commission to visit the Republican
leaders, sacked their own Minister [1] responsible for the Police
action, and finally invited the Republic to participate in the
Round Table Conference at The Hague.

2. The weakening of the Netherlands' attitude is probably due to
the following factors:-

(a) The Stiff Attitude of the B.F.O.

The unanimous decision [2] of the B.F.O. on 12th March to confirm
their resolution [3] of 3rd March calling for the restoration of
the Republican Government to Djokjakarta must have been a sore
blow to the Dutch. During the vacillations of the B.F.O. between
3rd and 12th March when Sultan Hamid II, and other Dutch puppets
sought without avail against Anak Agung and others to quash the
resolution, Beel was very distressed and intimated that he might
be forced to resign. Beel has favoured the transfer of sovereignty
to the United States of Indonesia but only so long as his own
powers would not be curtailed during the interim period.

(b) The Republican Guerilla Activity
Guerilla activity has increased as evidenced by the reports of the
Military Observers. Netherlands forces only control certain main
towns and not even the routes between all of them. Brigadier Prior
during his visit to Sumatra between 22nd February and 1st March
noted that Republican attacks were taking place well within
Netherlands occupied territory. 'Aneta' has acknowledged three
separate Republican attacks on Djokjakarta.

(c) The Moral Condemnation of the World
This was expressed in the Security Council Resolution [4] of 28th
January and in the first resolution [5] of the New Delhi
Conference. The Dutch have professed astonishment at the world's
attitude and have pleaded inexperience in International Affairs.

This moral condemnation probably led to the sacking of Sassen who,
backed by Professor Romme, the Parliamentary Leader of the
powerful Catholic People's Party, wanted to defy the Security
Council and maintain an authoritarian line in Indonesia.

(d) Economic Dislocation
In the areas occupied by the Dutch after the first and second
Police actions guerilla activity is dislocating economic
rehabilitation which can only function on law and order, the
establishment of which was ostensibly the reason for the Police
actions.

3. Looking at the matter now the Dutch must realise that they have
made a blunder, and ask themselves what was the point of Police
action if the Republicans are inevitably to be restored to
Djokjakarta. It will be impossible for the Dutch to arrive at any
solution on the future of Indonesia which is boycotted by the
Federalists as well as the Republicans or even by the Republicans
alone. Such a solution would be based only on force of which the
Dutch have not nearly enough. They have come a certain distance
since Van Royen's statement [6] on 28th January, although Koets,
on 28th February, in
clarifying Beel's offer to Sukarno, stated that it was impossible
to restore the Republican Government to Djokjakarta at present.

[7] As the rest of the world, including the Federalists and
Republicans is standing firm on Security Council Resolution, it is
imperative for the Dutch to seek a way out and find some face-
saving method of restoring the Republicans to Djokjakarta. If The
Hague Conference is only a detour necessary to help the Dutch
avoid a piece of bumpy ground as Cochran believes and not a new
track away from the Security Council resolution, we could help the
Dutch by agreeing to the Canadian-Chinese idea [8] for a
preliminary Conference between the Republicans and the Dutch with
the assistance of the United Nations Commission, with the specific
object of arranging for the return of the Republican Government to
Djokjakarta in a stated time.