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.rise from this Agreement and which cannot be solved by joint consultation in conferonco betweon those delegations"; yet there is disagrocment betwoon the Outch and Indonesions even upon the matter of settling their disagroements. the Netherlands interpretation of Article XVII holds that it applies only to to relations betwoon the Republic and the Notherlands but not to natters per- taining to the USI as a whole. The text of the Agroement seems clearly to Indicate, however, thot disputes concerning the USI should be included in ar- bitration settlements, since the USI is an integral part of the Linggadjati greenent. i. Conclusions In summary, the Dutch desire to achieve, through the Linggadjati grecnent, (a) the mintenance of Netherlands sovercignty throughout the ndies until the formation of the USI; (b) the integration of the Repub- ic into a federal USI as one of its component parts; and (c) the resto- ation of economic rights and control of foreign rolations. In opposition to these aims, the Indonosian Republic seeks (a) the ree exercise of all the prorogatives of a sovercign state by virtue of the e facto recognition of its authority in Java, Madura, and Sunatra, includ- ng the control of economic activities within its territory and the conduct f its own foreign rolations; and (b) the control of the entire Indies ar- hipelago through a unitary USI under Republican donination. The resolution of these divergent ains in the future depends upon he relative bargaining positions in political, oconomic, and nilitary torms f the two adversaries. In political torns, the Republic is strong so long as the presence of he Dutch in Java and Sunatre constitutes a mennce to the Republic's exist- ncc. Moderates and extrenists in the government of the Republic vigorously ppose any effort by the Dutch to impose their will by force, but split apart uring negotiations, according to their modorato or extrone reations to utch proposals. Indoncsian nationalism is extornally a source of strength h its unifying force in opposition to Dutch colonialisn, but there is, in- ernally, an elenent of weakness in its antagonisms, traditional or fostored, oward the dominant Javanese on the part of other othnic groups. Such antag- hisms can bo used by the Dutch to further a divide-and-rulo stratogy and to onvey an impression of weakness and dissonsion within the Republic. The Nethorlands, however, is also politically divided ovor Indies >licy between conscrvativos, business interosts, and the nilitary on the ne hand, and noderates, liborals, and left-wing elenents on the other. le former desire a strong policy ained at the rapid restoration of Dutch ghts in the Indios, while the latter favor negotiated settlenent and the cation of a partnorship of the Notherlands and the Indies as the best ans of preserving Dutch influence overseas. - 10 -

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    "ocrText": ".rise from this Agreement and which cannot be solved by joint consultation in\nconferonco betweon those delegations\"; yet there is disagrocment betwoon the\nOutch and Indonesions even upon the matter of settling their disagroements.\nthe Netherlands interpretation of Article XVII holds that it applies only to\nto relations betwoon the Republic and the Notherlands but not to natters per-\ntaining to the USI as a whole. The text of the Agroement seems clearly to\nIndicate, however, thot disputes concerning the USI should be included in ar-\nbitration settlements, since the USI is an integral part of the Linggadjati\ngreenent.\ni. Conclusions\nIn summary, the Dutch desire to achieve, through the Linggadjati\ngrecnent, (a) the mintenance of Netherlands sovercignty throughout the\nndies until the formation of the USI; (b) the integration of the Repub-\nic into a federal USI as one of its component parts; and (c) the resto-\nation of economic rights and control of foreign rolations.\nIn opposition to these aims, the Indonosian Republic seeks (a) the\nree exercise of all the prorogatives of a sovercign state by virtue of the\ne facto recognition of its authority in Java, Madura, and Sunatra, includ-\nng the control of economic activities within its territory and the conduct\nf its own foreign rolations; and (b) the control of the entire Indies ar-\nhipelago through a unitary USI under Republican donination.\nThe resolution of these divergent ains in the future depends upon\nhe relative bargaining positions in political, oconomic, and nilitary torms\nf the two adversaries.\nIn political torns, the Republic is strong so long as the presence of\nhe Dutch in Java and Sunatre constitutes a mennce to the Republic's exist-\nncc. Moderates and extrenists in the government of the Republic vigorously\nppose any effort by the Dutch to impose their will by force, but split apart\nuring negotiations, according to their modorato or extrone reations to\nutch proposals. Indoncsian nationalism is extornally a source of strength\nh its unifying force in opposition to Dutch colonialisn, but there is, in-\nernally, an elenent of weakness in its antagonisms, traditional or fostored,\noward the dominant Javanese on the part of other othnic groups. Such antag-\nhisms can bo used by the Dutch to further a divide-and-rulo stratogy and to\nonvey an impression of weakness and dissonsion within the Republic.\nThe Nethorlands, however, is also politically divided ovor Indies\n>licy between conscrvativos, business interosts, and the nilitary on the\nne hand, and noderates, liborals, and left-wing elenents on the other.\nle former desire a strong policy ained at the rapid restoration of Dutch\nghts in the Indios, while the latter favor negotiated settlenent and the\ncation of a partnorship of the Notherlands and the Indies as the best\nans of preserving Dutch influence overseas.\n- 10 -"
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