Foreign Relations of the United States, 1947, The Far East, Volume VI

656D.006/5–1547: Telegram

The Secretary of State to the Consulate General at Batavia

confidential

Washington, May 15, 1947—6 p.m.

131. Deptel 124, May 7.⁷⁰ Pursuant request that Isbrandtsen not send Richard Randle Rep port pending Dept inquiries situation, Isbrandtsen has informed Dept ship ordered wait Singapore.

Dept appreciates urtels 174 and 175, May 13,⁷¹ and requests you reiterate its urgent view necessity Dutch-Rep agreement practical interim arrangements which will permit US ships trade Rep ports. Presumably this might include joint approval import and export permits for proposed cargoes individual ships, joint inspection, and, as to estate products determined such inspection, placing proceeds sale escrow pending agreed distribution. Reasons: (a) World need commodities short supply and strengthening NEI economy hence moderate Rep Govt; (b) agreement on interim arrangements might facilitate agreement major policies; (c) some US ship may attempt trade Rep ports before policy agreements reached. US possibly has no legal power to stop such ship. If ship in fact enters Rep port and is seized by Dutch there might be most serious consequences here among labor unions, Congress and public opinion. If US accepted technical legality Dutch action US would be construed everywhere as backing colonial powers against independence movements. If US supported ship there might be serious strain US-Neth relations.

Dutch view here Jan 29 regulations continue full force and Neth have right unilaterally promulgate any desired decrees notwithstanding Linggadjati but desire prompt agreement Rep regarding imports and exports including joint inspection, joint body for issue permits, and joint body control foreign exchange.

AP story May 11 refers official NEI statement claiming Rep noncooperation on ground Rep economic counter-proposals covered all Indonesia and failed provide unconditional return non-Indonesian property within Rep. Dutch here, however, pointed out May 9 that import-export regulations and foreign exchange controls must apply all Indonesia in order insure fair distribution Rep and non-Rep territories. Hague’s 314, May 10 (Deptel 127, May 12⁷²) reports Dutch view that Rep desire unilateral Rep action on export-imports, etc.

Please report urgently on what points economic policies Dutch and Rep appear approximate agreement and on what basic issues there is disagreement. For Dept info endeavor ascertain discreetly Rep interpretation Linggadjati as applied pertinent issues. Also report your opinion on both Dutch and Rep desire cooperate in reaching agreements and willingness effect real give and take that end.⁷³

Sent Batavia 131. Repeated Hague 230 info only.⁷⁴

Marshall

70. Not printed.
71. No. 174 not printed.
72. Telegram 127 not printed.
73. Telegram 197, May 29, 5 p.m., from Batavia, reported that the Indonesians had not agreed to implement any phase of the agreement before all its articles were simultaneously implemented (656D.006/5–2947).
74. Also repeated to London as No. 2268, May 26, 7 p.m.