AMERICA TAKES DRASTIC ACTION IN EAST INDIES DISPUTE

Bay of Plenty Times, Volume LXXVII, Issue 14860, 23 December 1948, Page 3

AMERICA TAKES DRASTIC ACTION IN EAST INDIES DISPUTE

Suspension Of All Marshall Aid In

Meantime

DUTCH SEE DANGER OF COMMUNIST CONTROL

OVER INDONESIA

London, December 22

The Economic Co - operation Administration in Washington has suspended all Marshall Aid to Netherlands East Indies until agreement is reached between the Dutch Government and the Indonesian Republic. An E.C.A. official said it had been ruled that under present conditions in Indonesia the efficient distribution and use of the Marshall Aid goods could not be guaranteed. The official added that the decision was taken with the full agreement of the American State Department. The Indonesian envoy had earlier charged that the Dutch were using Marshall Aid to crush the republic. The Dutch ambassador. Dr Van Kleffins, denied that any recovery funds had been used to arm Dutch troops, Marshall Aid funds to the Dutch homeland will not be affected.

A resolution calling on the Security Council to order an immediate cease-fire in Indonesia and the withdrawal of the Dutch forces to their former positrons, was tabled in Paris today by the United Stales, supported by Australia and Columbia.

States in Indonesia he submitted the Security Council was not competent to deal with the situation in Indonesia. The situation there did not endanger international peace. The Indonesian Republican representative described the Dutch attack at the weekend, as a "Second Pearl Harbour.” It would spread conflagration throughout South-East Asia unless the council took effect tive action. He thought it ridiculous for the Dutch to suggest that an Indonesian uprising had been planned to start on Januarv 1.

It will be debated when the council meets again tomorrow. The United States delegate. Di Jessop, stated why nis country hao. called an emergency meeting of the councihthis was that prompt and forthright action must be taken to deal with the dangerous situation in Indonesia.

The Netherlands has officially announced that she has denounced the first agreement signed with Indonesian Republic. 11 months ago. But the United States view was that a settlement should be negotiated through the United Nations good offices committee. Earlier the Dutch case was given bv the Dutch representative. He said that the only purpose of hits Governement’s action was to clear certain parts of Java and central Sumatra of terrorist groups so that the Indonesian peopie could worn out their own constitutional development in peaceful conditions. The danger was that Communist groups might one day take over complete power in Indonesia. Communist activities there were closely linked with those in Malay. Burma and other parts of South-East Asia, all directed from the same country.

The Republican Army was too poorly equipped to contemplate any such thing. On the other hand, he alleged that the Dutch attack had long been planned, and was the tm-ai step in a carefully worked outschedule to strangle the Republic politically and economically. The United Nations good offices commission on Indonesia has sent a report to the Security Council strongly criticising the action by the Dutch. The commission says there were no Republican Army manouevres to give rise to any apprehension. On the other hand, the Dutch military operation must have involved considerable planning at a time when negotiations were still going on. After complaining that a communication sent by the Dutch five days ago had some features of an ultimatum the commission says the possibilities of negotiations so far from being exhausted have not been adequately explored.

After saying that his Government was still pledged to create a sovereign and independent United