Department of Foreign Affairs and Trade

Massey has given me your message saying that you would appreciate
a personal assessment of the present position in Java. [2]
The position is that signature of Linggadjati is once more
tottering on the brink.
On March 15th Dr. Sjahrir wrote a letter to Professor Schermerhorn
in the following terms:

'In reply to your communication of March 2nd we have the honour to
inform your Commission that we have learned with satisfaction that
it was not the intention of the Netherlands Government to impose
its interpretation of the draft agreement of Linggadjati
unilaterally upon the Government of the Republic. Furthermore we
are happy to learn from you that the Minister Jonkman in his
speech of December 19th, 1946 [3], by giving priority to the
declaration of the Netherlands Government meant thereby only that
an interpretation of the text from the Dutch, also the history in
being (sic) of each article, will apply.
We see however neither the necessity nor the cause either of going
further into the declaration of the Netherlands Government
mentioned above or of raising objection to the actual contents of
the declarations of the Netherlands Government of the 10th and
19th December.
In our view these papers produced in the Netherlands arose from
the method of handling the matter there and were thus principally
intended for internal politics of the Netherlands.
Moreover, an addition of papers (explanation of Commission-General
and declarations of the Netherlands Government of 10th and 19th
December) to papers which in our opinion are also included in the
signing of the draft agreement of Linggadjati (minute and official
correspondence) would increase sources of interpretation by yet a
few.
Finally the drawing up by us of our own interpretation and
comparison of this interpretation with yours could lead to
prolonged discussions which in many respects would be a repetition
of discussions which we conducted last year. Thus it would
certainly not be possible to reach any result in the time limit
set by you.
If, however, it is the intention of the Netherlands Government not
to proceed for its part to signing except in the manner as
established in the assembly of Second Chamber of the States
General on December 10th 1946, we for our part declare that we
have no objection to the explanation of the Commission-General,
the declaration of the Netherlands Government of December loth
946, and address of Minister of Overseas Territories on 19th and
20th December being included as their interpretation of that to
which the Netherlands Government considers itself bound on its
part by signing of draft agreement and of that which she
undertakes to put into practice in application of agreement
although without binding ourselves to these papers.
After signing there will, in our opinion be still ample
opportunity to submit to mutual discussion of the above mentioned
views and intentions of Netherlands Government.
Indonesian Delegation is now, by virtue of motion of confidence in
conducting Government of Republic negotiations with the
Netherlands Government passed by Plenary Session of the National
Committee on March 5th, authorised by the Peoples Assembly to sign
the draft agreement of Linggadjati as initialled.
We invite you accordingly once more to sign without delay the
draft agreement initialled together by us so that we can begin the
solution of urgent problems of restoration and reconstruction.'

The Commission-General have been authorised by The Hague to sign
on this basis. Sjahrir actually offered to sign on March 17th but
the Commission-General said they would not be ready for a few
days.
Meanwhile the Dutch forces staged an operation near Sourabaya to
occupy water sluices which have been a source of constant dispute
between the two parties. Whether this action which the Indonesians
claim to be a breach of the truce, and which was certainly ill
timed, will postpone or prevent the signature remains to be seen.
His Majesty's Consul-General at Batavia is urging restraint and
quick signature.
The fact is that the conflict of view is not so much between the
Dutch as a whole and the Indonesians as a whole, but rather
between moderates and diehards on the Dutch side and moderates and
extremists on the Indonesian side. Had the decision rested
entirely in the hands of the Commission-General for the Dutch and
Soekarno and Sjahrir for the Indonesians there would have been an
agreement long ago. But the moderates on each side have had to
play their hand very carefully to ensure sufficient support among
their own people.
The signature of Linggadjati (if it takes place) will certainly
not put an end to these divergences of view or to the difficulties
that arise from them. But it will be a success for the moderates
and ought to open a new chapter in which progress is possible.
Among other matters which ought then to prove capable of solution
is the present deadlock over the so called Dutch 'blockade'. It is
perfectly understandable that the Dutch should wish to prevent
trade in property looted from the Dutch abolition and on this
point the interests of the British estate owners are identical. On
the other hand arbitrary actions of the Dutch naval forces in
carrying out the Dutch policy has led to incidents outside
territorial waters over ships under the British flag about which
His Majesty's Government in the United Kingdom have protested at
The Hague. Further, the application of the Dutch regulations has
the effect of interrupting trade between the Netherlands East
Indies and the outside world at a moment when other countries need
all the food and other products which it may be possible to get
out of the Netherlands East Indies, and the Netherlands East
Indies badly need consumer goods. It is true that certain Dutch-
Indonesian economic and other committees set up last autumn are in
existence but all concerned are agreed that any adequate degree of
cooperation between the Dutch and the Indonesians over the
economic problems can only be hoped for after the signature of
Linggadjati.
Please let me know if the above does not make the position
sufficiently clear or if there is any other information you would
like.