Departmental Dispatch 24/1948 BATAVIA, 4 August 1948
GENERAL POLITICAL SITUATION
Reference: Consulate Telegram No.185 dated 24/7/48. 
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.
REPUBLICAN INFORMATION SERVICE, JACARTA PRESS REVIEW No. 163.
28th July 1948
Jacarta, July 28. A resolution , 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:
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.