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SECRETNO
WITH
ARONIVER "NATIONAL AND
THE
REDORGS
REPERCUSSIONS ON THE NETHERLANDS OF INDONESIAN INDEPENDENCE
Introduction.
This would in turn stimulate more active
Dutch political control in Indonesia, as well
Dutch participation in the integration meas-
as the prewar economic benefits derived from
ures which the US considers essential for a
it, was never fully restored after World War II.
healthy Western European economy.
Even if Indonesia had not gained complete in-
The drain on the Netherlands economy OC-
dependence, the force of the nationalist move-
casioned by the costly postwar conflict in In-
ment would have reduced Indonesia's prewar
donesia was indirectly eased by US aid through
economic importance to the Netherlands.
ECA. However, that drain is still being felt
Though it is too early to evaluate the effective-
during 1950 because of the expense of with-
ness of the dominion-type of relationship
drawing Dutch troops from Indonesia. If In-
which has replaced colonial control, the large
donesian efforts to achieve economic inde-
Dutch economic holdings remaining in Indo-
pendence curtail the Dutch role of intermedi-
nesia guarantee that the Dutch will continue
ary in exports from Indonesia to the US, the
their efforts to maintain influence in the
Netherlands problem of meeting its dollar
former colony and to establish close and per-
payments will become more serious.
manent working relations with it. Neverthe-
less, the international position of the Nether-
1. Political Repercussions.
lands has been considerably altered and its
Dutch-Indonesian Political Relations.
strategic interests in the Far East have been
The Hague Agreements establishing an in-
reduced by the granting of independence to
dependent United States of Indonesia and the
Indonesia on 27 December 1949. By relin-
Netherlands-Indonesian Union were reluc-
quishing political, economic, and military con-
tantly accepted as inevitable by the majority
trol of the archipelago, the Netherlands lost
of the Dutch people. Although the Dutch
political direction of the exploitation of the
Government has made some progress toward
resources of Indonesia.
closer cooperation with Indonesia, a number
Effects on US Interests.
of problems have arisen since early 1950 which
have unfavorably affected Netherlands-Indo-
Although there is considerable latent
nesian relations. Difficulties in implement-
Dutch resentment toward the US for its posi-
ing The Hague Agreements have been largely
tive role in the negotiations leading to Indo-
due to the inability of many Dutch to forego
nesian independence, this has not seriously
the role of colonials and of ultra-nationalistic
impeded Dutch support of other US policies
Indonesians to accept the important economic
and objectives. There is no reason to believe
position of the Dutch in the islands. Support
that future Indonesian developments will have
given dissident Ambonese and other Indone-
an adverse effect on Netherlands-US relations.
sian elements by Dutch nationals has aroused
With the major Dutch military commit-
considerable Indonesian antagonism against
ments in Indonesia terminated, the Nether-
the Netherlands Government and directed sus-
lands will be able to concentrate on metropoli-
picion toward the Netherlanders remaining in
tan defense and contribute more effectively
Indonesia. The current status of relations be-
to Western European joint defense efforts,
tween the two countries would indicate that
thereby utilizing US military aid more effi-
the daily working relationship established be-
ciently. Loosening of economic ties with In-
tween the respective High Commissioners and
donesia may be expected to result in expansion
Governments will be more important in de-
of Dutch economic relations with other areas,
termining good will and cooperation than the
including the Western European countries.
formal structure of committees and confer-
SECRET
3
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"ocrText": "SECRETNO\nWITH\nARONIVER \"NATIONAL AND\nTHE\nREDORGS\nREPERCUSSIONS ON THE NETHERLANDS OF INDONESIAN INDEPENDENCE\nIntroduction.\nThis would in turn stimulate more active\nDutch political control in Indonesia, as well\nDutch participation in the integration meas-\nas the prewar economic benefits derived from\nures which the US considers essential for a\nit, was never fully restored after World War II.\nhealthy Western European economy.\nEven if Indonesia had not gained complete in-\nThe drain on the Netherlands economy OC-\ndependence, the force of the nationalist move-\ncasioned by the costly postwar conflict in In-\nment would have reduced Indonesia's prewar\ndonesia was indirectly eased by US aid through\neconomic importance to the Netherlands.\nECA. However, that drain is still being felt\nThough it is too early to evaluate the effective-\nduring 1950 because of the expense of with-\nness of the dominion-type of relationship\ndrawing Dutch troops from Indonesia. If In-\nwhich has replaced colonial control, the large\ndonesian efforts to achieve economic inde-\nDutch economic holdings remaining in Indo-\npendence curtail the Dutch role of intermedi-\nnesia guarantee that the Dutch will continue\nary in exports from Indonesia to the US, the\ntheir efforts to maintain influence in the\nNetherlands problem of meeting its dollar\nformer colony and to establish close and per-\npayments will become more serious.\nmanent working relations with it. Neverthe-\nless, the international position of the Nether-\n1. Political Repercussions.\nlands has been considerably altered and its\nDutch-Indonesian Political Relations.\nstrategic interests in the Far East have been\nThe Hague Agreements establishing an in-\nreduced by the granting of independence to\ndependent United States of Indonesia and the\nIndonesia on 27 December 1949. By relin-\nNetherlands-Indonesian Union were reluc-\nquishing political, economic, and military con-\ntantly accepted as inevitable by the majority\ntrol of the archipelago, the Netherlands lost\nof the Dutch people. Although the Dutch\npolitical direction of the exploitation of the\nGovernment has made some progress toward\nresources of Indonesia.\ncloser cooperation with Indonesia, a number\nEffects on US Interests.\nof problems have arisen since early 1950 which\nhave unfavorably affected Netherlands-Indo-\nAlthough there is considerable latent\nnesian relations. Difficulties in implement-\nDutch resentment toward the US for its posi-\ning The Hague Agreements have been largely\ntive role in the negotiations leading to Indo-\ndue to the inability of many Dutch to forego\nnesian independence, this has not seriously\nthe role of colonials and of ultra-nationalistic\nimpeded Dutch support of other US policies\nIndonesians to accept the important economic\nand objectives. There is no reason to believe\nposition of the Dutch in the islands. Support\nthat future Indonesian developments will have\ngiven dissident Ambonese and other Indone-\nan adverse effect on Netherlands-US relations.\nsian elements by Dutch nationals has aroused\nWith the major Dutch military commit-\nconsiderable Indonesian antagonism against\nments in Indonesia terminated, the Nether-\nthe Netherlands Government and directed sus-\nlands will be able to concentrate on metropoli-\npicion toward the Netherlanders remaining in\ntan defense and contribute more effectively\nIndonesia. The current status of relations be-\nto Western European joint defense efforts,\ntween the two countries would indicate that\nthereby utilizing US military aid more effi-\nthe daily working relationship established be-\nciently. Loosening of economic ties with In-\ntween the respective High Commissioners and\ndonesia may be expected to result in expansion\nGovernments will be more important in de-\nof Dutch economic relations with other areas,\ntermining good will and cooperation than the\nincluding the Western European countries.\nformal structure of committees and confer-\nSECRET\n3"
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