656.56D/12–1951: Telegram
The Chargé in the Netherlands (Trimble) to the Secretary of State
616. During conversation with me yesterday Supomo said Indo had replied Dutch note mentioned Embtel 604, Dec 141 and were now [Page 763] awaiting Dutch answer. Assuming this was satisfactory, it should be possible commence talks within few days. Indo note he indicated had restated Indo intention that Irian issue should be discussed along with that of union charter, and he seemed fairly confident Dutch would agree to this proposal. Supomo continued that initial contact with members Neth del had been congenial and he seemed fairly hopeful that negot would be conducted in relatively friendly atmosphere. Once talks have officially started, he thought delegations would be broken down into at least two sub-committees, one for union charter and other for Irian with possibility third for econ and financial questions. Although dealing with separate subjects, sub-committees would naturally keep in close touch with one another. He said he hoped talks could be concluded sometime in Jan, asserting in this connection that irrespective whether or not this could be done, Indo del intends return Djakarta end that month.
Supomo said it was highly important from domestic political stand-point that Dutch agree to Indo sovereignty over Irian. Left-wing and ultra-nationalistic elements in Indo have been attacking govt on this issue and satisfactory settlement therefore required to strengthen govt’s position. Once this were accomplished extremists would have no further grounds criticize govt. Re Neth attitude on question, Supomo indicated full awareness Dutch desire postpone decision until after election. Indo, however, oppose Dutch delay and have every intention pressing for early settlement. He felt Dutch socialists would favor Indo sovereignty over Irian and that Amsterdam financial circles hold same view. On other hand, he had not encountered any sympathy Indo position among other Dutch political groups.
In reply my inquiry Supomo stated Indo do not contemplate any preferential tariff arrangements in future agreements with Dutch. Indo would, however, welcome Dutch capital as well as that other countries such as US and Australia development Indo economy including that of Irian. I mentioned contracts recently negot between India Govt and US and GB oil companies under which India reportedly agree not to nationalize latter’s refineries for at least 25 years and asked whether Indo Govt would follow similar policy re present or future foreign investments in Indo. Supomo gave evasive reply to effect Indo considered it necessary nationalize certain fields activity such as transport banking and public utilities but would not take such action re other industries except where in national interest and in such cases would naturally compensate owners. He added in this connection Indo Govt not planning nationalize US oil properties. Situation somewhat different in Irian which is largely undeveloped area and therefore once Indo sovereignty recognized his govt would be [Page 764] prepared give Dutch and other foreign investors for 20–30 year contracts for economic development area.
At conclusion conversation Supomo agreed keep us currently informed developments his negots with Dutch.
Dept pass Djakarta. Sent Dept 616, rptd info Djakarta 28, London 149, Canberra unn.
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