INDONESIA: The Startled World

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Amazed and alarmed at the violence of Indonesia's reaction, The Netherlands government ordered Dutch naval forces in Indonesian waters (one destroyer, one frigate, a few patrol boats) to stand by for action, dispatched additional warships to the Far East. The Netherlands' Permanent Representative Eelco Van Kleffens called an emergency meeting of the NATO Council in Paris to plead for diplomatic support against Indonesia.

At week's end. tempers seemed to have subsided. Information Minister Sudibjo was still threatening stern punishment for Dutchmen who disobeyed orders given by the Indonesian Workers' Committees of the seized companies, but hinted that Sukarno was having second thoughts about expelling every last Dutchman. Only some 8,000 Dutch unemployed would have to leave immediately, said Sudibjo. Dutch technicians, particularly those in positions for which there are no Indonesian replacements, would remain on the job—in fact, would be forced to stay on the job.

Sobering Advice. Sukarno had been listening to some sobering advice from able Financial Expert Sjafruddin Prawiranegara, president of the Bank of Indonesia. "Disaster may befall Indonesia because of the reprisals against the Dutch," said Sjafruddin flatly. He pointed out that The Netherlands' $1.5 billion capital investment in Indonesia is the base of 70% of the country's industrial production. Sukarno himself already knew that the anti-Dutch seizures had touched off a heavy run on Indonesia's banks ($3,000,000 U.S. in two days from one bank alone).

Only Sukarno knew whether Indonesia would continue its reckless and blatantly illegal grabs. In Djakarta, observers predicted that though Indonesia was still determined to expel the hated Dutch forever, it would not do so precipitately and thereby run the risk of self-destruction. Many Dutch in Indonesia deplored The Netherlands government's refusal to negotiate the question of West Irian. To them, the steaming jungles and matted mountains—however much wealth they may hold—seemed scarcely worth the loss of The Netherlands' rich investments in Indonesia itself. Even the U.S., if forced to a choice, would be reluctant to take sides. Said one top Washington diplomat: "Choices like this are often hard political choices. There isn't much chance that The Netherlands will go Communist over an issue involving colonial holdings. But there's a strong chance that 82 million Indonesians will."

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