The Press WEDNESDAY, FEBRUARY 18, 1959. New Zealand Relations With Indonesia

Press, Volume XCVIII, Issue 28823, 18 February 1959, Page 12

The Press WEDNESDAY, FEBRUARY 18, 1959. New Zealand Relations With Indonesia

New Zealand has much to gain, and nothing to lose, by fostering friendship with Indonesia. The visit by the Indonesian Foreign Minister (Dr. Subandrio) is welcome evidence of the repub- : lie’s desire for closer relations with Pacific countries, and of its growing national maturity. Since his arrival in the Dominion, Dr. Subandrio has shown his awareness of ways in which New Zealand can help his country in its progress towards democracy. New Zealanders should note Dr. Subandrio’s statements that possibly, “communism is “stronger in Indonesia than in " any other Asian country out“side Communist China”, and that “both Australia and New “ Zealand are becoming more “ aware that they should regard "themselves, not only as out- “ posts of Europe, but as West- " era nations living among Asian " friends ”, Dr. Subandrio’s Government deserves the support of all like-minded governments in democratic attempts to stop Communist infiltration. Indonesia is still an infant nation, beset with tremendous problems of economic, social, and political development The best way in which democratic countries such as New Zealand can assist it on its long, sometimes painful path to full democracy will be by practical demonstrations of friendship and understanding. New Zealand has no direct concern in the complexities of Indonesia’s internal politics or in the factional struggles that persist; but it is vitally concerned in the result. The most effective method of countering communism is by improving living standards throughout the populous islands of the republic. A foreign nation can help the Indonesian Government to do this by promoting diplomatic, commercial, and cultural exchanges, demonstrating the superiority of democracy as a way of life, and encouraging racial tolerance. Dr. Subandrio has said he is “ not asking anything from New " Zealand but obviously the friendly reception he has been given will colour, his Government’s future attitude towards a relatively close neighbour. Everyone should endorse his view that “ if there is to be any “substance in future relation- “ ships, there must be trade ”. However, the unsettled state of Indonesian politics and the brittleness of the republic’s economy do not encourage optimism about stable, expanding markets for New Zealand products, at least in the near future. New Zealand exports to

Indonesia in 1956 totalled £16,000, and in 1957 only £lOOO. Imports from Indonesia were £6,311,000 in 1956, and £5,711,000 in 1957. Indonesia’s paramount need is for capital goods to support its fairly ambitious development programmes. These goods New Zealand is ill-equipped to supply. JJew Zealand has participated in Colombo Plan aid schemes for Indonesia; and no New Zealander should grudge the cost. However, until Indonesia’s national structure is in better shape, endeavours to improve the balance of external trade will be difficult New Zealand’s policy on Indonesia’s claim io West New Guinea was defined in the United Nations on November 21, 1957. The Dominion upheld the principle that the people of West New Guinea should be allowed to determine their own destiny when they had achieved an appropriate stage of development; and it endorsed Netherlands sovereignty over the territory in the interim. During his visit to Australia, Dr. Subandrio won from the Commonwealth Government a firm undertaking not to oppose any agreement reached on West New Guinea between Indonesia and the Netherlands. This means that if, under Indonesian pressure, the Dutch agree to hand West New Guinea over to Indonesia sovereignty, Australia will acquiesce. Dr. Subandrio seems confident that agreement will be reached soon. But the future administration of the territory may not be determined as easily as he would like. Writing in “ Foreign “Affairs” last October, Benjamin and Jean Higgins suggested that, if the Indonesians refused to have the West New Guinea issue considered again by the United Nations, a ”,face-saving “alternative” might be to make West New Guinea “an “AN.Z.U.S. responsibility for a “few years”. They continued: “ Technical and capital assist“ance for develpping the area “ could still be provided through * the United Nations and “ American aid programmes.

“There is some evidence that “such an arrangement might be “ acceptable to the Indonesians;

“for them the important thing "is recognition of Indonesian “sovereignty”. If, in fact, this arrangement is being contemplated, New Zealand, because of its membership of . the A.N.Z.U.S. Pact, may be directly involved in a matter which otherwise would be of relatively remote importance to it; and Dr. Subandrio’s visit to Wellington would be specially significant