INDONESIA: The Army's Middle Way

As the big and sprawling Republic of Indonesia—a nation of hundreds of islands and 80 million people—moves into its tenth year of independence, its existence remains precarious. Some 10,000 rebels still infest the outer islands. In Sumatra 14 rubber plantations have been put to the torch in a single month. The gold backing for the printing-press currency is down to 7.85%, although the legal minimum is supposed to be 20%. Factories and industrial plants are operating at scarcely 60% of capacity because foreign exchange is lacking for raw materials and spare parts.

Flying Dancers. Yet in some ways, though not out...

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