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UNCLASSIFIED
2
SECRET
ing from the Netherlands to Indonesia for pos-
ernment against Dutch investments is forbid-
sibly several years. During this reconstruc-
den by treaty but an anticipated increase in
tion period the Netherlands Government will
government controls, higher wages, and con-
probably continue the extension to Indonesia
tinued sporadic lawlessness will make it more
of such credits as are necessary to maintain
and more difficult to attract Dutch capital.
financial and commercial relations between
The reduction of Dutch military commit-
the two countries. The return of Dutch civil-
ments in the Far East will not immediately
ians and troops from Indonesia is proceeding
increase Dutch military capabilities in Europe,
rather rapidly, and the need for manpower
as the latter presently depend more upon the
is such that no unemployment is antici-
provision of equipment and instruction than
pated. There will be a very sharp decline in
personal remittances to the Netherlands from
upon manpower. The Netherlands Army per-
sonnel returned from Indonesia will be uti-
Indonesia. The cancellation by the Nether-
lands of 2 billion guilders of the Indonesian
lized largely in reserve units. Comparatively
debt will result in another sizable loss of
few of the former members of the Netherlands
income.
Indies Army and Air Force are likely to enter
The major long-run economic effect of Indo-
the Dutch metropolitan forces. Since an
nesian independence will be the loss of an at-
over-all reduction in navy personnel has been
tractive field for the investment of Dutch cap-
taking place, repatriation will have little effect
ital. Discrimination by the Indonesian Gov-
on Dutch naval strength.
SECRET
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- Type
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Document data
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Context sent to Scholar
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"ocrText": "UNCLASSIFIED\n2\nSECRET\ning from the Netherlands to Indonesia for pos-\nernment against Dutch investments is forbid-\nsibly several years. During this reconstruc-\nden by treaty but an anticipated increase in\ntion period the Netherlands Government will\ngovernment controls, higher wages, and con-\nprobably continue the extension to Indonesia\ntinued sporadic lawlessness will make it more\nof such credits as are necessary to maintain\nand more difficult to attract Dutch capital.\nfinancial and commercial relations between\nThe reduction of Dutch military commit-\nthe two countries. The return of Dutch civil-\nments in the Far East will not immediately\nians and troops from Indonesia is proceeding\nincrease Dutch military capabilities in Europe,\nrather rapidly, and the need for manpower\nas the latter presently depend more upon the\nis such that no unemployment is antici-\nprovision of equipment and instruction than\npated. There will be a very sharp decline in\npersonal remittances to the Netherlands from\nupon manpower. The Netherlands Army per-\nsonnel returned from Indonesia will be uti-\nIndonesia. The cancellation by the Nether-\nlands of 2 billion guilders of the Indonesian\nlized largely in reserve units. Comparatively\ndebt will result in another sizable loss of\nfew of the former members of the Netherlands\nincome.\nIndies Army and Air Force are likely to enter\nThe major long-run economic effect of Indo-\nthe Dutch metropolitan forces. Since an\nnesian independence will be the loss of an at-\nover-all reduction in navy personnel has been\ntractive field for the investment of Dutch cap-\ntaking place, repatriation will have little effect\nital. Discrimination by the Indonesian Gov-\non Dutch naval strength.\nSECRET"
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