180 Quinn to Department of External Affairs

Cablegram Hague 12 THE HAGUE, 2 February 1949, 4.30 p.m.

RESTRICTED

INDONESIA

The following is our translation of the text of statement issued today by the Department of Overseas Territories. Official translation has not been provided. BEGINS:-

It is officially announced that reports emanating from the Foreign Press Agencies regarding radical modifications in the Netherlands policy with regard to Indonesia are completely incorrect. There has never been any question of the Netherlands East Indies Government conducting a 'Sterile policy of passive resistance to the Security Council' as was suggested in one of these foreign reports. Reference is made to clear the performance of Doctor Van Royen in the Security Council during the debate on the resolution [1] which has since been adopted by that Council and which from the N.E.I. point of view was in certain respects unacceptable and impracticable. It has become abundantly clear that Federal Indonesia and N.E.I. have in conjunction been able to outline a constructive policy. The important steps being taken in Batavia- and not the least in Indonesia circles-with an approach to attempting rapid realisation of the New Order as between the N.E.I. and the whole of Indonesia, are being followed with close interest. A partial transfer of N.E.I. Sovereignty to the Security Council, which, according to certain press reports from Indonesia is said to be feared in Federalist circles, has not and will not be considered. ENDS.

2. Most significant of recent developments appears to be the new importance attaching to the Federalists, whose conference, according to Dutch forecasts, is likely to produce today a formula to serve as a basis for discussions with Republican leaders on the setting up of an Interim Federal Government.

1 Document 168.

[AA : A1838, ts45/1/4/5, i]