My telegram K237. [1]

Following telegram has been sent by the Republic in Batavia to the
Republican Representative in India.

'Points for Asian Conference.

(a) The Dutch should be blamed as the aggressor.

(b) Following proposals should be put forward as basis for an
immediate settlement:-

(1) Immediate release of the President Soekarno, Hatta and his
Government and other Republican leaders.

(2) Freedom of movement and expression for the released leaders.

(3) Restoration of Republican Government in territories controlled
by the Republic before the second military action.

(4) Economic assistance to the territories suffering from the
effects of the Netherlands blockade and since the devastation by
the war.

(5) Retirement of the Dutch troops to defined garrisons.

(6) Formation of an Interim Government for the whole of Indonesia
in which the Republic would participate with fair representation.

(7) An Indonesian Interim Government to have real powers in the
Legislative, Executive and Military matters while the Netherlands
to have overriding power in certain specifically defined cases
during the interim period.

(8) Elections throughout Indonesia to be held in June 1949 to form
a Constituent Assembly which shall decide on the constitution of
the U.S.I. and delineation of states within the U.S.I. and statute
of the Netherlands-Indonesian Union.

(9) Sovereignty to be transferred to a fully independent United
States of Indonesia by December 1st, 1949, at the latest.

(10) Indonesian problem to remain on the agenda of the Security
Council; consequently G.O.C. to remain in Indonesia until transfer
of sovereignty to U.S.I.

(c) Every pressure to be exerted on United States and United
Kingdom to support foregoing proposals as a basis for a
settlement.

(d) In the event of the Dutch refusing to release the President
and other political prisoners or refusing a settlement on
foregoing basis following measures may be taken:-

(1) Imposition of all possible sanctions against the Netherlands
including:-

(a) Prohibitions on all trade to or from the Netherlands and
Indonesia,
(b) Prohibition against the use by the Netherlands operators of
harbours, air fields or any communication facilities in countries
concerned.

(2) Pressure on United States to stop all Marshall Aid to the
Netherlands.

(3) Recognition of emergency Government of Sjaffrudin
Prawiranegara in Sumatra and in case the Government is deemed to
be unable to function consideration of establishing an Emigre
Government in New Delhi or elsewhere.

(4) Material and all other possible support to aid guerilla
struggle in Indonesia.

(e) Background information for Asian Conference:

(1) There is considerable unrest throughout Java and Sumatra and
even in South East Borneo where Martial law has been proclaimed.

(2) The guerilla struggle in the whole of Java and Sumatra is
being intensified. The TNI is undefeated and has dispersed to
carry out guerilla warfare under Supreme Command of Colonel
Nasuti[o]n in Java and Colonel Hidayat in Sumatra.

(3) A scorched earth policy is being carried out successfully,
estates, plantations, railways and important buildings are being
destroyed.

(4) Republican Officials are not co-operating with the Dutch
Administration in military-occupied territories of the Republic.

(5) The people maintain a hostile attitude to the Dutch
Administration.'

2. The above telegram has been repeated to Palar along with
additional information:-

'(a) No contact possible until President Soekarno or the Vice
President Hatta or with the Republican Minister.

(b) It is reported that Soekarno, Hatta and Sjahrir are kept in
Sumatra and other islands outside Java separated from each other.

(c) We do not think Soekarno, Hatta or other[s] with [2] will
accept negotiations.

(d) The purpose of visit of Drees is not known, probably he will
form an Interim Government.'