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The seemingly senseless struggle has cost both sides dear. In 1957 Sukarno brutally expropriated $1.5 billion in Dutch investments in Indonesia and expelled 50,000 Dutch residents. In addition, the Dutch government has had to sink nearly $30 million a year into New Guinea just to keep it economically afloat. Because of Indonesia's determination to regain its "lost" territory, Sukarno devotes a large part of his annual budget to arms, thus further wrecking the wobbly economy of his island nation.
Legal Cloak. At the U.N. last September, Foreign Minister Luns stated that "The Netherlands wishes irrevocably to terminate its history as a colonial power." He proposed handing over New Guinea to the U.N., which could then allow the native Papuans to determine their own fate. Indonesians view the Dutch move as simply an attempt to give a "cloak of legality" to an illegal act. In a speech to a mothers' meeting last week, in which he urged them to put their sons and daughters in uniform, Sukarno cried: "I call on the whole world not to bother trying to get us talking about self-determination for West Irian. We definitely reject that sort of self-determination."
Last week the U.N. appealed to both countries for a "peaceful settlement" of the issue. In The Netherlands, Foreign Minister Luns is propelled toward negotiation by the obvious reluctance of the Dutch to get involved in a pointless colonial war. A majority of the Cabinet also backs negotiations but a stubborn and potent minority, including Luns himself and Home Affairs Minister Edzo Toxopeus. wants Papuan self-determination guaranteed by the Indonesians before sitting down to the conference table. In Indonesia, Sukarno is restrained by the fact that an invasion of New Guinea is a far more risky military operation than was the Indian walkover in Goa. Should the invasion fail, Sukarno might well be overthrown as a consequence.