U.S. May Reduce Aid To Netherlands Because Of Indonesian Decision

Gisborne Herald, Volume LXXV, Issue 22819, 14 December 1948, Page 5

U.S. May Reduce Aid To Netherlands Because Of Indonesian Decision

(10.30 a.m.) THE HAGUE, Dec. 13. Dutch political sources said they thought that the Netherland’s decision to establish an Interim Federal Government in Indoilesia without the Republicans might affect the Netherland’s share of Marshall aid.

It was suggested that the United States had been “quietly but steadily interfering” in Indonesia by encouraging the Indonesian Republican demands and criticising the Dutch attitude. As increased trouble in Indonesia would interfere with Holland’s own recovery programme, any policy which would cause fighting might induce America to limit or curtail economic help to the Netherlands. Political authorities believed that America might encourage the Indonesians in any continued struggle for independence, or at least make it difficult for the Dutch to clear up the situation. They considered that the Netherlands’ Government is prepared to accept the consequences of its Indonesian decision even though other _ nations disapprove and more austere living returns to Holland.

Most of the Dutch appear to support the Government but it is not yet certain how much support they would give for further police or military action against the Indonesians. Theoretically, the new administration could be established by January 1, but in practice serious obstacles may arise for members of the federation have stated that they would not work without the co-operation of Dr. Hatta, the Republican leader. The Dutch believe that even if Dr. Hatta is willing to co-operate he cannot control his forces and the extremists might force him to continue the struggle.

“Sad Stale Of Affairs: Door Not Closed To Indonesia”

(P.A.) WELLINGTON, Dec. 13. “This is the big moment,” commented the Netherlands Minister, Mr. J. B. D. Pennink, today referring to a cable message stating that the efforts to include the Indonesian Republic in the new federative scheme for the Indies had failed. , . “And as one who lived there for many years and as one who is very fond of its peoples, I fully appreciate its significance. It is very sad, really. Mr. Pennink said the anxiety of the Dutch to achieve a settlement was indicated bv the importance of the delegation sent from The Hague to negotiate, all the members being of first ra “The situation has been complicated by the fact that the Republic is not able to control its own military forces,’ continued the Minister. “Therefore, it is not difficult to contemplate what will be the outcome,” he added. Despite the troubles since the vvar the Indies had shown an astonishing capacity towards recuperation, and it was a pity that those islands were not, able to supply in greater quantity so many of the commodities that the outside world required. He believed, however, that a pronouncement would be made by January 1 stating the Dutch Government's intention to promulgate its new proposals and, following that, it might be possible to give attention to resuming the trade relations that existed before the war with New Zealand and also other countries. . “As for the Republic, the door is still open. Perhaps it will come in at some later date,” he concluded.