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CENTRAL INTELLIGENCE GROUP 2430 E Street, N. W. Washington 25, D. C. ORE 20 9 June 1947 COPY NO. 1 BASIC DUTCH-INDONESIAE ISSUES AND THE LINGGADJATI AGREEMENT SUMMARY The signing of the Linggadjati or Draft Agreement between the rep- resentatives of the Netherlands and the Indonesian Republic on 25 March 1947 climaxed nearly fourteen months of difficult negotiations. Remaining dif- ferences in interpretation of the agreement, however, are so deep and fun- damental that orderly progress toward final adjustment of Dutch and Indo- nesian aspirations in the islands cannot be expected. The fundamental conflict is between the Dutch view that the Nether- lands will continue to be the sovereign power in the Indies until the United States of Indonesia (USI) is formed, and the Republic's view that Netherlands sovereignty does not extend over Republican territory in the interim period. This difference impedes the process of mutual adjustment and jeopardizes any effort of cither party directed toward the formation of the USI and the es- tablishment of a durable rolationship botwoen the Nothorlands and the Indo- nesian Republic. Stemming from this basic issue and tho mutual distrust which it has engendered are the following issues which must be adjusted in the next two years before the USI can be ostablished: (1) the roduction of military forces on both sides; (2) the restoration of Dutch properties in Republican territory to their formor ownors: (3) the reconciliation of the foroign trado policies of the Nothorlands Indios Government and the Indone-- sian Republic; (4) the political organization of the portions of the Indies which lie outside the Republic; and (5) the control of the foroign rolations of the Republic. In the rosolution of those issues, the bargaining positions of the Netherlands and the Indonesian Republic are noarly balanced in political, economic, and military terms. The rosultant delays in negotiations are leading the Dutch to consider an attempt to reach a decision by military force. This, in turn, will aggravate anti-Wostern sontiment throughout the Far East and might lead to a considcration of the dispute by the UN Secur- ity Council. - 1 -

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    "ocrText": "CENTRAL INTELLIGENCE GROUP\n2430 E Street, N. W.\nWashington 25, D. C.\nORE 20\n9 June 1947\nCOPY NO. 1\nBASIC DUTCH-INDONESIAE ISSUES\nAND\nTHE LINGGADJATI AGREEMENT\nSUMMARY\nThe signing of the Linggadjati or Draft Agreement between the rep-\nresentatives of the Netherlands and the Indonesian Republic on 25 March 1947\nclimaxed nearly fourteen months of difficult negotiations. Remaining dif-\nferences in interpretation of the agreement, however, are so deep and fun-\ndamental that orderly progress toward final adjustment of Dutch and Indo-\nnesian aspirations in the islands cannot be expected.\nThe fundamental conflict is between the Dutch view that the Nether-\nlands will continue to be the sovereign power in the Indies until the United\nStates of Indonesia (USI) is formed, and the Republic's view that Netherlands\nsovereignty does not extend over Republican territory in the interim period.\nThis difference impedes the process of mutual adjustment and jeopardizes any\neffort of cither party directed toward the formation of the USI and the es-\ntablishment of a durable rolationship botwoen the Nothorlands and the Indo-\nnesian Republic. Stemming from this basic issue and tho mutual distrust\nwhich it has engendered are the following issues which must be adjusted in\nthe next two years before the USI can be ostablished: (1) the roduction of\nmilitary forces on both sides; (2) the restoration of Dutch properties in\nRepublican territory to their formor ownors: (3) the reconciliation of the\nforoign trado policies of the Nothorlands Indios Government and the Indone--\nsian Republic; (4) the political organization of the portions of the Indies\nwhich lie outside the Republic; and (5) the control of the foroign rolations\nof the Republic.\nIn the rosolution of those issues, the bargaining positions of the\nNetherlands and the Indonesian Republic are noarly balanced in political,\neconomic, and military terms. The rosultant delays in negotiations are\nleading the Dutch to consider an attempt to reach a decision by military\nforce. This, in turn, will aggravate anti-Wostern sontiment throughout the\nFar East and might lead to a considcration of the dispute by the UN Secur-\nity Council.\n- 1 -"
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