423 Critchley to Department of External Affairs

Cablegram K314 BATAVIA, 26 May 1949, 4.10 p.m.

CONFIDENTIAL

Sub Committee 1 (K310 and K312 [1]) met again in Djokjakarta on May 24th after informal discussions. Following is a summary of progress report agreed upon at the meeting which will form the basis of a Press release. [2]

1. 'The date of handing over authority to the Republican Government depends on the period needed for civilian evacuation (two weeks) and for Military evacuation afterwards. In this light it is hoped that the return of the Republican Government may take place about the middle of June.

2. Suspension of arms:

(a) Both parties will issue an order immediately to all forces in the Residency 'to avoid all contact in arms and to cease immediately any form of sabotage, destruction, obstruction, undermining and subversive activity'.

(b) At a date to be determined later, after such order has been issued, the suspension of arms will be formally announced.

Detailed statement will be included in a separate agreement.

(c) The Dutch will give the Sultan 48 hours' notice prior to evacuating any areas or posts in the Residency so that the latter can speedily occupy them.

(d) Direct contact between the Netherlands and the Republican Commanders is forbidden.

(e) On receipt, U.N.C.I. Military Observers will [be requested] [3] to observe implementation of the agreement and to assist in preventing incidents.

3. Republican Police Force.

Agreement has been reached as to uniforms and other equipment to be supplied, and delivery orders have already been given.

Difficulties have arisen regarding armament which will be considered further. (On this point s'Jacob has made it clear informally that the Dutch will not supply arms which must be obtained from T.N.I. At the meeting, the Sultan made a confidential statement that he considered the provision of arms for the Republican police as 'Conditio sine qua non'. He urged an early provision of arms and equipment in the interests of a good transfer and quick restoration of the maintenance of law and order.

4. Technical.

(a) Contact has been established between technical personnel of both parties in regard to public works, railways, postal, telegraph and telephone services. Lists of type and periodic requirements for maintenance of these and other public utilities are expected to be completed this week. Lists of number and kind of road transport vehicles to be supplied will also be ready this week.

(b) Telegraph and Radio Communication.

(1) Inter-insular and International Telegraph Communications have been arranged;

(2) Radio Communications have been arranged between Djokjakarta and Batavia;

(3) Foreign broadcasts will be considered further;

(c) Air Communication.

(1) K.L.M. will include Maguwo in its flight schedule if security of aircraft and passengers is guaranteed.

(2) The use of Republican aircraft in accordance with I.C.A.D. and V.T.R. regulations is under discussion. Republican aircraft will probably be permitted to fly Djokjakarta-Semarang and Atjeh-Medan routes. No agreement so far on flight between Republican Areas and foreign countries.

5. Supplies.

Agreement has been reached regarding the supply to the Residency of Djokjakarta of such essential commodities as rice, sugar, petroleum, salt fish, salt, soap, textiles and medical supplies.

Full particulars will be submitted later.

6. Currency.

(a) Pending an overall settlement, Republican currency (O.R.I.) will be legal tender in Republican areas.

(b) The use of Netherlands East Indies currency will not be prohibited;

(c) There will be no fixed rate of exchange between the two currencies;

(d) The Republican Government will be given technical assistance to obtain the amount of currency required for its return to Djokjakarta;

(e) Accounts for goods, materials and services will be settled after the establishment of the U.S.I. between the Republican member States and the Federal Government;

(f) A certain amount of Netherlands East Indies currency will be placed at the disposal of the Republican Government.

(2) Since Saturday May 21st one thousand to twelve hundred civilians per day have been evacuated from Djokjakarta. It was hoped to step this up to three thousand per day by May 25th but alleged attacks on the first two convoys by groups operating from Kuomoentilan (Residency) have delayed this. Pending a clearing in dangerous areas, the Dutch will give extensive military protection to convoys which will necessarily restrict their size.

(3) The Dutch troops will be withdrawn from their positions on the South Eastern section of the Residency (including Wonosari) on May 30th. In addition, the Dutch have agreed simultaneously to evacuate three posts on the Djokjakarta-Klaten Road to give the Republicans a corridor between their forces on the North Eastern boundary of the Residency and their main concentrations on the South.

(4) Apart from the vexed question of arms for the Republican police, there is thus little to delay the restoration of the Republican Government. However, it has so far been impossible to fix a definite target date for the actual transfer of authority.

Ostensibly, this is due to the delay in the programme of evacuations. The Dutch have hinted, however, that they will not agree to the fixing of a definite date until more progress has been made in sub-committee two. (I expect to be able to report progress on the cease-fire by the weekend.) (5) During the sub-committee's stay in Djokjakarta, Cutts heard of further incidents which indicate a campaign (organised or otherwise) by Dutch troops of intimidating the inhabitants into evacuating.

(6) Dutch sources believe Setiadjit is in charge of Communist operations in the Kuomoentilan area.

1 Documents 390 and 401.

2 See note 2 to Document 422.

3 Words in square brackets inserted from a copy on file AA :

A4968/2, 25/9/3, ii.

[AA : A1838, 854/10/4/3, v]