INDONESIAN CRISIS

Press, Volume XCVII, Issue 28514, 18 February 1958, Page 13

INDONESIAN CRISIS

Arrests Of Rebels Ordered (N.Z. Press Association—Copyright) (Rec. 8 p.m.) JAKARTA, February 16. Army headquarters tonight announced that security forces had ordered the arrest of ten Central Sumatran rebels on charges of treason. _ An Army spokesman said that Major-General Abdul Haris Nasution, Chief of Staff, in another decree, had warned Indonesians to have no links with the rival Government proclaimed last nieht in Central Sumatra. . ...General Nasution’s arrest order named six civilian members of the rebel Cabinet, including Dr. Sjafruddin Prawiranegara, the Prime Minister of the “Revolutionary Government of the Republic of Indonesia.”

General Nasution said the decree was addressed to all State security agencies.

The six civilians are: Dr. Sjafruddin Prawiranegara, the Prime Minister and Finance Minister; Messrs Burhanuddin Harahap, the Defence and Justice Minister; Soemitro Djoj Hadikoesoemo, the Commerce and Shipping Minister; Mohammad Sjafei, the Education and Health Minister; Saladin Sarumpait, the Agriculture and Labour Minister, and Abdulgani Usman, the Social Affairs Minister.

The rebel Government to-night declared financial war with an order to all foreign firms to halt shipments and royalty payments to the Central Government in Jakarta according to the American Associated Press.

The action was taken only a few hours after the proclamation of the new Government in Padang.

The American Associated Press said it was the first move towards applying a headlock on the Soekarno regime. Instructions issued by the revolutionary Government over Padang Radio said that foreign concerns, entering into financial agreements with the Central Government in Jakarta would do so “on their own responsibility and consequently at their own risk.” The orders, broadcast in English and monitored in Singapore said: ‘‘This particularly applies to contracts for the delivery of arms to the Soekarno-Djuanda Government, even if signed prior to February 15.” Foreign banks holding bullion and other funds for the Indonesian Government were told to freeze them. The broadcast said the responsibility for disobeying this order would rest with the banks. ( Banks and other institutions holding Indonesian funds were also told to furnish detailed accounts to the Bank of Indonesia at Padang. The radio repeated last night’s announcement that the revolutionary Government “guaranteed fully the lives and property of foreign citizens residing in territory controlled by the revolutionary Government.” This was as long as they obeyed the laws already existing or introduced by the revolutionary Government and did not try to subvert the Government’s authority, the radio said. The agency said the freezing of oil shipments would start an economic squeeze which leaders in Padang say would cripple the financially-pressed Central Government in - two ways—by stopping vitally needed royalties and by cutting off fuel supplies. It quoted rebel leaders as saying: “Java cannot last more than three months when our campaign gets going.” . Sumatra has been producing 70 per cent, of Indonesia’s foreign exchange earnings.