The Gisborne Herald IN WHICH IS INCORPORATED "THE TIMES." GISBORNE, FRIDAY, DECEMBER 10, 1948. INDONESIAN SETTLEMENT CONCERNS N.Z.

Gisborne Herald, Volume LXXV, Issue 22816, 10 December 1948, Page 4

The Gisborne Herald IN WHICH IS INCORPORATED "THE TIMES." GISBORNE, FRIDAY, DECEMBER 10, 1948. INDONESIAN SETTLEMENT CONCERNS N.Z.

r jpiTERE is evidence of increasing impatience in New Zealand and Australian Government circles at the delay in the settlement ol: the Duteh-lndonesian problem. The latest expression of this was at, the conference of the Economic Commission for Asia and the far East, when on the initiative of New Zealand the Indonesian Republic and the Netherlands East Indies were admitted as non-voting associate members.

It may be asked, what has the dispute over Indonesia to do with New Zealand and Australia? Strategically. Indonesia is at the front, door to both the Dominions, a potential stepping stone from SouthEast Asia as was demonstrated during the Pacific war. For this reason and for political considerations, a friendly Indonesia is essential in long-term defence planning. With the rapid spread of communism through Asia Indonesia may well be the buffer block of the future. This has been foreseen by Moscow, as witness the recent attempted coup d'etat against the .Jogjakarta regime. Finally, there is the economic aspect. Indonesia’s raw materials are vital to the advancement of the Western Powers as well as to Australia and New Zealand and, further, in Java, Borneo and the numerous other islands in the rich archipelago may rest a large potential market for Australian secondary industries and perhaps also for Australian and New Zealand food surpluses. The independence of Indonesia is a de facto accomplishment with strong international support. Since the July elections the Dutch attitude, however, with a powerful right-wing backing at The Hague, has hardened, especially as the Indonesian moderates are alleged 1o be under increasing pressure from extremist elements . To counter this the Dutch contend that there is no difference between '‘police action” in Indonesia and the British use of tanks and Spitfires against the Chinese insurgents in Malaya. Major political differences today centre on the position the Republic is to occupy in the projected United States of Indonesia and its relations with The Hague during the interim period. But, meanwhile, the truce is being strained to breaking point and there is a serious deterioration in the economic situation which will delay considerably the recovery of Indonesia. There is a serious shortage of vital goods. Jogjakarta says this is because of the Dutch Navy’s blockade, while Netherlands officials claim that the maladministration of the Indonesian leaders is responsible. It is estimated by British sources that Indonesia is unlikely to regain its position as a major supplier of tea, rubber and oil until at least 1950.

It is obvious that a much more conciliatory attitude must be shown by both sides. Britain lias had nothing but criticism from the Dutch for her attempts to mediate, and official opinion in The Hague towards the United Nations was recently reflected in a speech by Queen. Juliana, who said that the Good Offices Committee “did not always contribute to well-considered treatment of the complicated problems in Indonesia.”

The latest information is that the Dutch delegation will urge its Government to establish an Interim Federal Government in Indonesia before 1949. Whether this means further negotiations it is not stated, but a prompt settlement of this three-year-old dispute is in the interests of both New Zealand and Australia.