of the Republican Indonesians in the Netherlands Indies and abroad contrar

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AR CHIEFEXFMPLAAR

CONFIDENTIAL

ACTlVITIES

of the Republican Indonesians in the Netherlands Indies and abroad contrar

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TRUCE AGREEMENT ~ ,

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THE EIGHTEEN RENVILLE PRINCIPLES

BATAVIA, September 1948.

P,inted by Reproduction Bmnch - Topogmphical Service - Batavia·C.

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Foreword

In the course of the negotiations between the Netherlands and the Republic of Indonesia, under the auspices of the United Nations' Committee of Good Offices, the Netherlands Delegation has Irom time to time feit the need of com-

binillg some of the pertinent facts relative to the activities of the Republican Indonesians, both in this Archipelago and abroad, in readily presentabie print.

The first booklet published· to th is end, covering the period trom the beginning of the negotiations up to the signing of the Truce Agreement on 17 January 1948, entitled "Doeuments submitted to the Committee of Good Offices by the NetherJands Delegation", was issued early in February 1948.

In May 1948 a seeond bookJet was published entitJed "Th ree months of Truce on Java and Sumatra", dealing with the period 17 January tiJl 30 April 1948.

The next issue followed earJy in JuJy 1948, under the titJe "MiseeJlaneous doeuments in connection with the Truce Agreement and the eighteen Renville Principles" .

The present issue shouJd be viewed as a continua ti on ol the booklet ,.Miscellaneous Documents", as it contains mainJy documentary evidence which has sinee become availabJe up to 31 August 1948. It has not been the intention to compiIe a record as to how the situation at present prevailing in these isJands has deveJoped, but rather to present a kaJeidoseope of recent activities of the Republican Indonesians.

Batavia, September 1948

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Agreement concluded between Suripno and the Soviet Union Minister at Prague and various comments thereon.

President of the Republic of Indonesia to all to whom these presents shall come, greeting:

Know Ve: That reposing special trust and confidence in the integrity, prudence and ability of

SURIPNO

Special Envoy and Minister Plcnipotcntiary of the Republic of Indonesia, I have investecl him with full anti all manner of power and authority for anel in the name of the Republic of I ndonesia to meet ancl confer with any person or persons duly authorized by the Governments in Eastern ancl Central Europe and of the U .S.S. R. being invested with like power and authority ancl with him or them la negotiate about the establishment of friendly relations between these Govemments anel the Governmcnt of the Repllblic of Indonesia, condude and sign any agreement or other acts adopted by said negotiation, the same to be transmitteel to the President and the Governmcn! of the Republic of Inelonesia for ratification.

Done at the city of Djocjakarta, th is twcnty fifth of December in the year one tholIsanel nine hlllldred and forty scven.

By the President:

Vice Minister for Foreign Affairs (signed) TAMZIL.

(signed) SUKARNO.

President of the Republic of Indonesia.

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Press reports of the 28th May 1948 stated that an agreement had been concludecl in Prague between the Soviet U nion and the Republic for an exhange of Consular Officers. The agreement is said to have been negotiated on behalf of the Indonesian Republic by Dr. SURIPNO. Although the Republican Government are reporled by Ihe press to know nolhing "officially" about the establishment of diplomatic relalions with Russia.

IJr. SURIPNO was barn at Klaten (Indonesia) in 1920 ancl describes himself as a "civil servant". At Ihe end of the war in Europe he was in Holland and was sent la Batavia at the end of 1946 or the beginning of 1947 as repTe- sentative of the PERHIMPOENAN INDONESIA (Indooesia Students'Move- ment in Holland).

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In January 1947 the INDONESIAN COMMUNIST PARTY magazine

"Bintang Merah" ("Red Star") announced the formation of a new committee which was called the Central Committee and was divided into four sections of which the most important was the Political Bureau. This consisted of five members,

(I) ALIMIN (11) SARDJONO

(III) MAROETO DAROESMAN

(IV) SOEPARTO ("Malay Communists") (V) SURIPNO

In 1947 SURIPNO was issued with apassport by the Ministry of Foreign Affairs, Djogjakarta and was one of the Indonesian delegates to the Pan Asia- tic Conference New Delhi, in March 1947. While in New Delhi he formed a group of representatives to coordinate international movements and was assis- ted by Maroeto Daroesman. In New Delhi he obtained a "short visit" visa dated 4th August 1947 for the United Kingdom. His travel documents show th at he was in the United Kingdom in transit for Prague between 9th August

and 11 th August 1947. .

Is is known that he visited London on the invitation of Dr. SOEBANDRIO, representative of the Republic there. It is also known that while in London SURIPNO was in touch with the Headquarters of the Communist Party of Great Britain.

Inddnesia Republic Representative, Prague.

Memo no. LP/l/48, Part 1.

Subject: Indonesia RepubUc-USSR relations.

Prague, 26 May 1948.- On Saturday 22 May 1948 at Prague, lelters were exchanged between M. A.

Silin, USSR Ambassador in Czechoslovakia, and us, which contained agreements to assume diplomatie relations and the exchange of Consuls between USSR and the Indonesia Republic. In this matter we act as the representative and in the name of the Government of the Republic of Indonesia using authority in accordance with artieles signed by the R.1. President on 25 December 1947. Mr. Silin acted in the name of the USSR Government after procuring full authority from his Governmenl.

The above result was duly notified by telegram to the Vice-President and the Prime Minister on 18th May, containing notification of a reply from the USSR Government on the request of !he R.1. Government for assumption of diplomatie contacts between us and the USSR. The reply stated that if we agreed the USSR Government would be ready and willing to assume contacts and exchange Consuls as the first step towards assuming wider relations. Our 2nd telegram of 22nd May notified of the above relation already accomplished.

Both the telegrams were despatched through the auspices of Dr. Soedarsono, the lndonesia Representative at New Delhi, India.

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Copy ol above letters are enclosed herein as enclosures and also copy ol press communique in English and Russian. We sent Our original letter to the USSR Ambassador al Prague in the Indonesian language, and that was acknowledged by the USSR Government vide document DH/I/4810 with copy, which we signed and in Russian vide document DRflI48/SR, whioh we sent 10 the USSR Am- bassador at Prague. The original lelter lrom the USSR Ambassador at Prague.

is deposited in our Archives, which lelter we intend to take personally with us to Indonesia lor submission to the President.

We are to repeat here our request, which we have also addressed to the Vice President and the Prime Minister in Our telegram of 22nd May sent through Dr. Soedarsono, for the purpose of obtaining ratification ol said agreement by the President and the R.1. Government, so Ihat the exchange of Consuls between the two countries might be speedily broughl lorward. We have alreadyasked the USSR Government 10 send immediately her Consul to jogjakarta without waiting for the departure ol our own Consullrom Indonesia.

History oi USSR-Indonesla Republic Relations.

We deem it necessary to elucidate briefly here our relations with the representative of the USSR Government at Prague up to the time ol the signing of the agreement mentioned above.

Befare our appointment as official Republiean Representative with full power in October 1947, we heard unofficially th at the USSR Government would not take the initiative in the assumption of relations hetween USSR and Indonesia, although Russia looked upon the Indonesian struggle with the utmost sympathy. Nonetheless, it was hinted at the time that an initiative on the part of the Indonesian Government would meet with every response, thereby raising the prestige of the peoples ol Indonesia in the eyes of t·he New Democratic Eastern Europe.

Af ter our receipt of the letter from the President, dated 25 December 1947, delegating us with lull power, and the original in mid-january 1948. with instructions and other communications in the lorm ol telegrams and lelters Irom Or. Soedarsono and our office in Singapore, we immediately requested to interview the USSR representative in Prague at the time, P.T.S. Bodrov was the Chargé d' Affaires.

We interviewd Mr. Bodrov on 17 February 1948 inlorming him of our intention to have relations with USSR. Alter that meeting lurther contacts were made, at whieh opportunity we presented to him the politieal and other situa- tions in Indonesia.

We Iike to mcntion here that the ab avc meetine:s we re made after the signing ol the "Renville" agreements. ft is superfluous lor us to mention here, that the .,Renville" agreements were looked upon in loreign and progressive countries as "unsatislactory" whieh agreements were arrived at through pressure by the Duteh and the Three-Power Commission, with the latter sides apparently taking advantage of the chaos thcn ereatcd amongst the Indonesian nation through the downfall of the Sjarifuddin Cabinet.

We 'have na intention to express here Our views on the streng th and influence of the different parties and leaders, but we are to reaffirm th at the question of the unanimity ol our National Front is ol the utmost importance.

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We deern it necessary to have relations with USSR. We have to admit, however, that the attitude of USSR toward us is rather cautious, but Mr. Bodrov has undertaken to submit our case to Moscow, and we on our part are wilIing 10 give all necessary information.

The big problems that are now confronting us are firstly the question of acceptance of Dutch Sovereignty all over Indonesia, and secondly Ihe Repu- blic's relations wilh other countries. We fee I anxious lest by the "Renville"

agreements, the Republic wilI surrender her foreign contacts.

In Dur propaganda we affirm that the peoples of lndonesia are staking their all for complete Independence, and that Ihey wilI not be deceived by promises, and neither will they submil to force, but be decided amongst Ihemselves.

The cautious attitude adopted by the USSR was illustrated by the fact th at il was not until IBth May that some semblance of result was obtained, i.e. the USSR agreed 10 exchange Consuls wilh Indonesia.

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Message despatched Irom Djocjacarta on 8 June 1948.

Very urgent: For SURIPNO at Prague.

Vou are requested to come to Djocja, not to be accused of anything, but to give further inlormation as regards your service during all that time and to discuss our further attitude.

In this we do not wish to hurt the feelings ol the U.S.S.R. Therefore you are requested to find the best way ol supplying the U.S.S.R. Embassy at Prague with inlormation with regard to our difficulties and that it is clear that we do not at all wish to hurt the feelings of the U.S.S.R. I think th at it is quite pass i- bIe to find a modus vivendi for this.

We still need the support of foreign countries in oreler to obtain astrong positioll during the negotiations, but we are bOlmd to the ... recognition.

At this moment the foreign relations are not extended.

From Minister of foreign Affairs.

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A correspondent of "Fadjar" at Djocja reported as folIoIVs on June 10,1948.

"ft is conceivable that the Sajap Kiri hails the exchange of consuls with

Russia. The "Front Demokrasi Rakjat" stated that it demanded the maintenance and extension ol foreign relations as explained by the Committee ol Good Offices at Kalioerang. The people must demand from the Government that the Republic should enter into relations with countries defending and believing in frcedom, peace and democracy, such as, for instance, Soviet-Russia.

11 stands to reason that the Sajap Kiri profiteel by the "Pragua incident"

to accu se and blame the Government, which is now composcel of PNI and Masjoemi members. The F.D.R. leels that the time has now come to bring down the Presidential Cabine!. The Masjoemi, which had full confidence in the

"moral and material" support of America in the Neth.-Indon. Qllestion, is now being cornered by Moscow, The Hague, Djocja and Washington.

lf the Masjoemi accepts the recognition (by Rllssia) as a diploma tic vic- tory, this means a slap in the face of Prof. Graham and America, and it also means that the Masjoemi is abandoning the standpoint of the Islamitic faith, which, in principle, is the "greatest enemy" of commllnism.

lf it cloes nol accept Ihe recognition, this rejection means a slap in the face of its OWII Governmcn!. However the Masjoemi Headquarters at Djocja keep silence. In Ihe Illeantime the F.D.R., availing ilself of the Russia-qllestion, Con- tinues ils efforts to overthrow the Masjoemi anel its Cabine!. The "National Programme" whicll, on 31st May, last, was submitteel by the Sajap Kiri la tlle ,.Partai Ser ikat Indonesia", the P.N.I., the Masjoemi, the "Parkindo" anel the .. Partai KaUwliek Indonesia", contains, some principlcs on which agreement had already been reached wilh the above parties on 20lh May, last, viz:

I. cooperation on the basis of anti-imperialism;

L. foreign relations;

3. popular c\efence;

4. dClllocracy in every field;

5. better provision to be made by the Governmellt for evacuees, war vic- tims, thc retreating army and their families.

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The all-important question is now: What is America's standpoint with respect to Russia's intervention in the lndonesian question? Can America push the Netherlanders and the interest of the Netherlands aside in its political and diplomatie struggle in Asia (Washington-Moscow)?

Strikes are threatening the Republic ! On the instruction of the Executive Board of the "Sarboepri" the labourers in the textile works of Gelanggoe (Solo) have gone on strike. In the ultimatum of the "Sarboepri", Section of Solo, it was announced that this Section can influence the railway-men and can also involve the Army in the strike. And in the army there is considerable chaos on account of the "rationalization plan"!

Further, the labour organizations in the residency of Solo have declared to be in sympathy with the strikes at Gelanggoe.

The Republic and the Hatta Cabinet are in a critical situation: the whole of the Republic is menaced by an organized strike. And this situation has not been created by the Netherlands "enemies" !

In the newspaper "Se mangat Merdeka" of June IOth, appearing at Medan, there appeared an article by [rawan Pandu, in which the foIfowing was observed with regard to the opening of diplomatie relations between the Soviet Governmellt and the Republiek Indonesia:

What are Rl1ssia's rea I intentions?

The Netherlands and the Netherlands-Indies come under the Marshall-plan.

lndonesia was recognized by Russia for the sake ol the balance in polities in south-east Asia. This action on the part ol Russia can be considered as the lirst warning to the capitalist and imperialist Iront ol the Americans and the Netherlanders in Indonesia not to sabotage the struggle for Ireedom of the Indonesians. Let us lully avail ourselves of this opportunity to bring pressure to bear upon the Netherlanders continually.

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Agreement between Republican Government and Matthew Fox of New York, N. Y.

AGREEMENT, MADE JANUARY, 1948 BETWEEN THE REPUBLIC OF INDONESIA, HEREIN CALLED "THE GOVERNMENT" AS PARTY OF

THE FIRST PART, AND MATTHEW FOX OF NEW YORK, N. Y HERE IN CALLED "FOX", AS PARTY OF THE SECOND

PART. WITNESSETH.

Preamble

T,he dispute Ibetween the Nelherlands Oovernment and the Oovernment of the Republic of Jndonesia has created a political crisis which has almost com- pletely cut off normal trade relations between the Oovernment and the rest ol the world, and in particular with the United States ol America. This conllict has also seriously retarded the restoration and expansion ol all phases of the Indonesian economy.

As aresuit, the people of Jndonesia have been dcprived of vitally needed consumers, goods and the economic benefits resulting from the adequate utili- zation of their resources. These unsettled conditions impose tremendous obsta- cies to the opening up of essential commercial relations because of the serious nature ol the hazards which they impose upon prospective traders and investors.

The Oovernment therelore believes it urgently necessary and in the interest of its people to make immediate arrangements with farsighted and sympathetic American business interests willing to undertake the risks involved in over- coming these obstacles, and for that purpose the Oovernment is entering into this Agreement.

The primary purposes sought to be achieved by the Oovernment in so doing are, so far as and as speedily as its resources and finances and as circumstances and conditions warrant and will permit, to attain the following ends:

I. Development Program. To procure the aid ol the Corporation (which is to be created by the parties as hereinafter set forth) to assist it (a) in achiev- ing economic stability and commercial expansioll by obtaining, when il and to the extent requested by it, technical, engineering, economic and financial assistance; (b) in lostering the rehabilitation, reconstruction and expansion of existing Jndonesian enterprises and facilities; (c) in developing the human, mineral, fishery, agricultural and all other Indonesian resources; and (d) in stimulating the industrialization of the Jndonesian Republic including manufac- turing, processing, transportation, communications, shipping, waterways, elec- trilication, public works and construct ion industries, banking, trading and other commercial activities. A basic factor in all these projects is to be a comprehens- ive program to provide for the technica I training of lndonesians in a,1I of the foregoing matters.

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These activities are to be undertaken to benefit . the Indonesian people directly by raising their standard of living by broadening their educational and cultural opportunities, and by otherwise enabling them to enjoy to the utmost the economic advanta.ges of their vast natural resources for the first time in their history. The consummation of th is program will make available the agricultural, mineral and other products of Indonesia to the urgently needed world- wide recovery.

2. Surveys. When, as and if and to the extent desired and requested by the Government, the Corporation is (a) to undertake an economic survey of the available products, resources and future developmental needs of the Republic;

(b) to consult with and assist in drafting an over-all plan for future development; and (c) to provide for facilities for training technicians, economists and skilled workers to carry out a balanced trade and development program, so that ultimately the Indonesian people will achieve economic independence through their own eflort and resources.

3. Stimulation of American Participation. To stimulate the widest possi- bIe participation by American industry and investors in trade and development of Indonesian resources. The purpose of so doing will be to secure for the Republic the most favourable possible arrangemcnts, and, at the same time, to create a large and diversified group of Americans having an important stake in the rapid achievement of Indonesian industrial independence.

The Government wil I, as herein set forth, give lull, adequate and complete assurances to safeguard such investments against conliscatory or excessive taxation, measures of expropriation, restrictions on transfers of funds and discriminatory regulations in general.

4. To constantly increase the Indonesian standard of living, to extend the scope of medical, health, social and cultural benefits, and to conserve natural resources.

5. Imports. To facilitate imports from the United States to Indonesia as rapidly as possible so as to supply both Indonesian short term critica I needs for finished and other goods and long ran·ge requirements. The Government recogn- izes that the quantity of imports to be made available to Indonesia is directly dependent upon the availability of exports and that two-way trade is indispen- sable. ft is expected that the Corporation wiII make available certain critical supplies so far as practicabIe at once so that practical benelits to the Indone- sian people will be forthcoming as promptlY as possible.

6. Exports. To facilitate exports from Indonesia to the United States to the greatest possible extent, and to dispose of such products in the United States for the greatest possible returns consistent with sound business judg- ement.

7. The foregoing preambles and recitals shall not Ibe deemed or construed as imposing any obligations, promises or engagements on any of the parties hereto, except as hereinafter expressly provided, but are intended merely as a statement of the Government's objectives and purposes w.hich it desires to a.ccomplish in the future as rapidly as possible and to the accomplishment of which it desires to enlist the active aid of the Corporation, and the only rights and obligations of the parties hereto in all such respects are as hereinafter in this Agreement expressed and as may be hereafter expressed in writing when mutually agreed upon.

Now, THEREFORE, IN CONSIDERATION of the mutual promises herein contained, the parties signatory hereto hereby agree as lollows:

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ARTICLE I.

1.01. The parties signatory hereto shall cause a corporation to be organized promptly under the laws of the State of Delaware, having such appropriate and necessary corporate powers as they may be advised and as they shall deem necessary for the purposes of this Agreement.

1.02. The Corporation shall have an authorized capita I stock consisting of 105,100 shares, of which (a) 5,000 shares thcrcof shall be designated as Class A stock, of the par value of $ 1.- per share, (b) 100 shares thereof shall be designatcd as Class B stock, of the par value of $ 1.- per share, and (c) 100,000 shares thereof shall be designa!ecl as Preferred Stock of the par value of $ 100.- per share.

1.03. The Certifica!e of Incorporation of the Corporation shall, alllong other things, provide that:

The Preferred Stock may be issued in such series, with such designations, preferences and relative, participating, optional or olher special rights, and qualifications, limitations or restrictions thereof, anel may be made subject to redemption at such time Or times and at such price or prices and the holders of any series thereof shall be entitled to receive elividends at such rates, On such conditions anel at such times payable in preference to, Or in such relation to the dividends payable on any other class Or classes of stock, which dividends may be cumulative or non-cumulative, and such holders shall be entitlèd to su eh rights upon the dissolution of Or upon any distribution of the assets of, the Corporation, and any Preferred Stock, or any series thereof, may be made con- vertible into, or exchangeable for, shares of any other c1ass or classes of any other series of the Corporation at such price or prices or at such rates of exchange anel with suoh adjustments, all as shall be stated and expressed in the resolution or resolutions providing for the issue of such stock adopted by the Board of Directors in accordance with law, and all subject to the provisions of the last paragraph of this Section 1.03.

All dividends declared from the suplus remaining after the payment of full dividends on t.he outs tanding Preferred Stock fOr all previous dividend periods, or after adequate provision !herefor, shall be paid only to the holders of the Class A stock prorata and the holeIers of the Class B stock shall never be entitled to participate in any distribution of assets by the Corporation by way of dividends, or otherwise, or upon Iiquidation, whether voluntary of involun- tary, or otherwise.

In the event of any Iiquidation, dissolution or winding up of the Corpora- tion, after paymenl la the holders of the Preferred Stock of all amounts to whioh such holeIers shall be entitled, the holders of Ihe Class A stock shall be entitled, to the exclusion of the holders of Ihe Preferred Stock and of the Class B stock, 10 share ratably in al Ihe assets of the Corporation remaining.

The holders of the Class B stock shall exclusively possess voling power for the elect ion of directars and for all other purposes and the holders of the Preferred and Class A stock shall have no voting power whatsoever, except as otherwise expressly provided by law, nor shall the holders of the Preferred or Class A stock be entitled to notice of any meeting of the stockholders, except as otherwise expressly provided by law. At all elections of directors by the stockholders the holders of the Cia ss B stock shall have the rights of cumulative voting.

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The number of authorized shares of Class B stock of the Corporations shall not be increased, nor shall any additional class or classes of voting stock be authorized except upon the unanimous vote or wrillen consent of the holders of all the shares of Class B stock outs tanding and entitIed to vote.

1.04. The Government ag rees to purchase and pay for 2500 shares of the Class A stock and 49 shares of the Class B stock at a price of $ 1.- per share and Fox ag rees to purchase and pay for 2500 shares of the Class A stock and 51 shares of the Class B stock at a price of $ 1.-per share. Payment for such shares shall be made in cash by the respective parties aloresaid in the amount stated at the office ol Fox in New Vork, N.Y., as soon as suoo· shares are ready for delivery.

ARTICLE 11.

Funds and Credits.

2.01. The Corporation shall lend to the Governmen! the sum of

$ 100,000.- in cash, ol which $ 25,000 thereol shall be advanced on Or abou!

January 5, 1948, and $ 75,000.- thereol within ten (10) days aft er the effective date ol Ihis Agreement as hereinafter delined. Such loans shall be evidenced by the duly executed promissory notes ol Ihe Government, with shall be payable three (3) years af ter the date thereof unless sooner paid as here in provided.

2.02. The Government agrees that such advance of $ 100,000.- shall be secured by a valid and ·binding assignment to the Corporation ol the proceeds to the extent ol $ 500,000.-thereol, arising Irom the sale ol all exports, il any, hereafter made by it the United States, whether such sales are made or eflected by the Corporation as herein provided or otherwise, until such loan(s) shall have been lully paid as hereinalter provided. Such assignment shall be in lorm reasonably satislactory to and approved by the Corporation and shall be executed and delivered simultaneously with the making ol the lirst advance aforesaid.

The Government wiII, when, and il, requested by the Corporation, further secure the rcpayment of such loan(s) lby Ihe transfer to the Corporation of stocks ol goods, wares and merchandise owned by it, and at the time of the execution thereof available in Singapore and in Indonesia lor shipment to the United States, and having at the time ol such assignment an aggregate realiz- ab Ie dollar value ol at least 200,000.-.

In addition to the security above mentioned the Government \ViII, at the time ol making the laan of $ 25,000.-aforesaid and any other laan Or advance made prior to the effective date of this Agreement, as hereinafter defined, deliver to the Corporation duly executed assignment(s), in form reasonably satislactory to the Corporation of the proceeds of exports to the United States made prior to the date of th is Agreement, which assignment(s) shall be made to secure payment of such loans and advances and the expenses relerred to in Section 2.07 hereof; provided, however, that the assignment(s), referred to in this paragraph shall have na effect after the effective date of this Agreement.

In addition 10 the security above mentioned, the Governmenl will al the time 'of the making 'by the Corporation ol any advance to ven dors or shippers for the account of the Gavernment or incurring any obligations for or making any guarantees for the account of the Government, or extending any credit to or for the account of the Government with respect to the purchases to be made 10

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or the Iransporlation 10 he lurnished lor the Government hereunder, deliver to Ihe Corporation duly executed assignmenls, in lorm satislaclory 10 Ihe Cor- poration, ol Ihe proceeds, to Ihe exlenl ol twice Ihe amount ol any of the foregoing items, arising from Ihe sale of all exports, il any, hereunder made by Ihe Governmenl 10 Ihe United Slates until such items shall have been lully paid.

Wherever under Ihis Agreement provision is made lor the payment ol amounts due or 10 grow due to Ihe Corporation by Ihe applicalion ol a specilied percentage of Ihe proceeds of sales by Or for Ihe account of the Government, such percentage of such proceeds shall be deemed 10 be and are hereby assigned to the Corporation absolutely.

2.03. Such advances of $ 100,000.- shall be repaid by the Government by the applicalion of 25% of the proceeds arising trom the sale of all its exports to the Uniled States subsequent to Ihe date hereof to such repayment, and the Corporation shall and hereby is given full right and lawful authority to de duet such amounl(s) trom such proceeds and apply the same to the repayment of such advances -unlil such loan(s) shali have been fully repaid.

Recourse and resort 10 the security provided lor in Section 2.02 of Ih is Artic1e 11 may be had by the Corporation at ils eleclion upon failure of the Governmenl 10 pay Ihe loan(s), advances and expenses herein relerred 10

wilhin len (10) days after wrillen notice 10 the Governmenl by Ihe Corporalion, should Ihe Government fail 10 expo rl slock of ils goods, lVares and merchandise

10 Ihe Uniled Slales as conlemplaled Ihis Agreement. The Corporation shall nol, however, be obligaled 10 have recourse 10 such securily, and such recourse shall be a non-exclusive right. The Governmenl shall be and remain Iiable for Ihe deficicncy, if any, ol such loan(s), advances and expenscs, remaining after resorl 10 Ihe securily aforesaid, and Ihe Corporalion shall pay over 10 Ihe Governmcnl, or upon its order, the overplus, if any, remaining after repayment of the loan(s) aforesaid. The righl 10 prepay all, or any parI, of such loan(s) at any time is reserved to the Government.

2.04. Fox ag rees 10 make the sum of $ 100,000.- aforcsaid available 10

Ihe Corporation in apl lime 10 provide Ihe Corporation wilh the funds nccessary

10 enable it 10 make the loan(s) aforesaid to the Government and agrees 10

make available 10 Ihe Corporation an additional sum of $ 250,000.- for Ihe purpose of providing working funds for maintaining its organizalion, for ad- minisIralive and for olher corporale purposes, within 30 days after Ihe effeclive date of th is Agreement. Such sums may be made available by Fox to the Cor- poralion in Ihe form ol loan(s) 10 il 10 be evidenced by its ninely (90) days promissory nOle(s) which shall be repaid by il, al any lime, or from lime 10

time, in whole or in part, as promptly as its financial resources will permit wilhout affecling Ihe abilily of Ihe Corporalion 10 conlinue ils business as conlemplaled herein. Unlil repaymenl of such nole(s) may be made as herein provided such nole(s) shall be renewed from lime 10 lime for Iike pcriods and subjecl to Iike condilions respecting Ihe payment Ihercof.

Fox shall also have the righl 10 cause such sums of $ 100,000.- and

$ 250,000.- aforesaid 10 be made available to the Corporation in whole or in part rhrough Ihe issuance and sale by Ihe Corporation of its authorized Prefer- red sloek.

2.05. Separate and aparl from Ihe funds 10 be made available 10 the Corporalion as aloresaid, Ihe Corporation, within ninety (90) days after the effective date of this Agreement, shall have in hand or available for its general 11

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corporate purposes the further Sum or credits ol $ 1,000,000. -. Such sum shall be deemed available for the purpose of this Agreement if the aggregate of (a) the proceeds of loans made or available to it, and (b) bank or commercial credits established or available for the purchase of commodities, as hereinafter defined, for the account of the Oovernment as contemplated hereunder, and (c) goods, wares and merchandise on hand for shipment or theretofore shipped, and (d) the value of shipping and transportation charges made available, and (e) the proceeds of sale of Preferred stock of the Corporation, shall be in the amount of $ 1,000,000.-. The Corpora ti On shall use sum aforesaid for the purpose of making purchase and providing transportation for the Oovernment as provided in this Agreement. The Corporation shall not, however, oe obligated to continue to mallltain or have available for its general corpora te purposes the sum of $ 1,000,000. -aloresaid il not used, for reasons beyond the control ol the Corporation, within six months af ter the eflective date ol th is Agreement, or after it has been used or expended lor the purposes of this Agreement.

In the evcnt the Corporation makes any advanccs to vendors or shippers for the account of the Oovernment, or incurs any obligations lor or makes any gllarantees lor the account of the Oovernment, Or extends any credits to thc, or for the account ol Oovernment, with respect to the purchases to be made or transportation to be furnished for the Oovernment pursuant to this Section 2.05, or any other purchases or transportation to be made or furnished for the 00- vernment hereunder, the Corporation shall ,have the right to apply 50% ol the proceeds arising from the sale of all exports of the Oovernment to the United States subsequent to the date hereof to the repayment thereof and the Corpo- ration is hereby given full right and lawful authority to deduct such amounts from such proceeds and apply the same to the repayment thereof until the same shall have been fully repaid; provided, however, that the Corpora ti on shall be entitled under this paragraph to apply only 25% of the proceeds for the foregoing purposes if at the same time it shall be making the deductions provided for in the first paragraph of Section 2.03 hereof.

2.06. Neither Fox nor the Corporatioll shall be in any manner liable to the Oovernment or otherwise, in the event th at the sum(s) aforesaid are not available to the Corporation within the time and in the manner and in the form hereinabove provided, but, in such event, the Oovernment shall have the right, within one hundred and twenty (120) days alter the effective date hereol, but not thereafter, to terminate th is Agreement. In the event of termination under the provisions of this section, neither Fox nor the Oovernment nor the Corpo- rat ion shall be liable to the other, except that the Oovernment shall be and remain liable to repay the loan(s) aforesaid and any advances theretolore made to it or lor its account, and all sums due to the Corporation as commissions hereunder or otherwise; and except that, upon request of the Oovernment, Fox . shall transfer and assign to it or upon its order all shares of stock of the Cor-

poration owned by him, other than shares of Preferred Stock.

2.07. In the event that Agreement is not approved and authorized by the Working Committee of the National Convention of the Oovernment as hereinafter provided, the Oovernment shall neverlheless be anel remain lia'ble to repay the advance ol $ 25,000.- aloresaid and such other sllm(s), if any, as may have been advanced to or lor the account of the Oovernment, and in addition thereto, the Oovernment shall be liable to reimburse the Corporation for such amount, not in excess of $ 25,000.-, as shall have been paid Or incurred by the Corpora ti on for its casts and expenses, all of such sums aforesaid to be paid by the Oovernment on or before September I, 1948.

12

(19)

ARTICLE 111.

Imparts and Exports

3.01. The Government hereby makes, constitlltes and appoints the Cor- poration its sole and excillsive agent for the term specified in Section 7.04 hereof:

(a) for the sale by the Government of its commoelities in the United States or for delivery therein Or to American firms or interests; and

(b) for all purchases of commodities made by the Government in the United States Or from American firms or interests; and agrees that, dllring sU0h term, it wil I make no pllrchases or sales in the United States (or from or to any American firm or interests) of commodities as hereinafter defined, except throllgh the Corporation and pllrsllant to the terms hereof.

3.02. The Corporation, by its assumption of this Agreement as hereinafter providcd, shall be deemed to have accepted the agency aforesaiel alld the agency created by ArticJe IV hereof, and shall carry out, comply with and Derform all the obligations of the Corporation herein contained on its part to be carried out, complied \Vi th and performed as su eh agent.

3.03. The Corporation shall establish and mailltain such offices and facilities and employ such personnel as may be necessary, adequate and proper to carry out its fllnctions as contemplated by this Agreement.

3.04. As lIsed in th is Agreement:

(a) the term "United States" shall mean the United Statcs of America, its territories and possessions; and

(b) the term .. commodities" shall mean goods, wares, merchandise, mach i-

nery, equipment, coml11odities, mineraIs, agricultural products, raw or

refined materials and all other materials alld products of all and every killd and character \Vhatsoever alld franchises, conccssions, distributor- ships, sales agencies, licenses, anel similar rights by \Vhatever name desigllateel, patents, patents Iiccllses and agreements in respect thereof or in relation thereo, leases, royaJties and agreements in respect thereof or in relation thereto, copyrights and all other rights of every kind, nature or character which can or may be granted by or to the Government, but shall not include developmental enterprises for which special provision is made in Article IV hereof.

3.05. In effecting any sales for the Government hereunder, the Corpor- ation shall use its best efforts to procure the best lawful price obtainable therefor.

3.06. The Government ag rees at all times to keep the Corporation fully and promptly informed and advised of the commodities which are available for sale by it and the quantities, grades, character and specifications thereof.

3.07. The Government now has on hand certain stocks of commodities Dresentiy available for export to the United States and will, from time to time, during the term of the agency created by this Artiele lIl, purchase or otherwise acquire additional stocks thereof which it will make simiJarly available.

13

(20)

The Oovernment shall also, from time to time, use its best efforls to ship commodities to the United States in advance of sale or for stock piling to facilitate future sales thereof.

3.08. The Corporation agrees that unless otherwise instructed, all purchases made by it for the Oovernment hereunder shall be made by it at the market price(s) thereof, if there be a market price for the commodity involved, or. if there be no market price for the commodity in question, then at prices first approved by the Oovernment Trade Commissioner in the United States, or in his absence from his office, by lIis designee in charge of such office at such time(s).

It is understood, however, that certain critical commodities and services are difficult to obtain at list or market prices and that the Corporation may purchase the same at such prices as in its best judgment may be neeessary to purchase same.

3.09. (a) In effecting any contra ets with vendors or vendees under the terms hereof the Corporation shall be, and be deemed to be, only the agent of the Oovernment and shall not be guarantor of the performance of any such contract(s) and it assumes na responsibility ot any character in connection with the performance thereof by the parties there1o. The Oovernment agrees to indemnify and save the Corporation wholly harmIess from any and all such responsibility or Iiability. The provisions of this paragraph are without prejudice to the obligations of the Corporation under Section 2.05 hereof and without prejudice to its obligations as agent hereunder.

(b) The Oovernment may, trom time to time, ship commodities to the United States in advance of the sale thereof or for stock piling in the United States to facilitate future sales thereof, or for other purposes. Any and all such commodities w,hether or not consigned to the Corporation, shall be shipped, stored and handled for the account and at the expense and risk of the Oovern- ment. The Oovernment shall reimburse the Corporation for any costs and expenses incurred by it in connection therewith, including but not Iimited to the costs of storing, handling, insurance, customs duties and the Iike, all of which casts and expenses shall .oe deemed incurred for the account of the Oovern- ment.

3.10. Wherever practicabIe, purchases shall be made by the Corporation from existing primary sourees of supply.

3.11. The Oovernment shall prompt/y supply the Corporation with a priority list of such products as it now urgently requires, in sufficient desciptive detail, including quantities, la permit purchase commitments la be made by the Corporation in its beha/f as rapidly as possible. and will furnish the Corpo- ration from time to time with /ists of the commodities which it desires to purchase and wilh sufficient descriptive and detai/ed specifications thereof to enable the Corporation to make proper purchases thereof. No purchases or eommitments therefor will be made for the Oovernment unless aut·horized by it in writlng.

3.12. The Oovernment shall have the right, trom time to time, la change, modify, alter or amend the Iists of commodities sa supp/ied in any particular(s), and the Corporation after due receipt by it of written notiee of sueh change, shall not make any commitments tor the Oovernment except in accordance

IA

(21)

with the modified list; provided, however, that any eommitments made by the Corporation prior to the aetual reeeipt by it of wrillen notiee of any sueh change shall be binding upon and honoured by the Government upon the terms thereof.

3.13. As eompensation for its services under this Article, the Corporation shall receive and the Government agrees to pay to the Corporation a sum equal to

7Y2 %

of the total invoice price thereof on all of the Government's purchases and sales in the United States and to or from American firms and interests during the term of agency created by this ArticJe lIl.

Where any commodity or right is granted or sold to or oy the Government on a rental, royalty, license, fee or other similar basis, the Corpora ti on shall be entitled to a commission of 7

Y2 %

of the considerations, rents, royalties, license fees and the Iike paid by or to, or the account of, the Government.

The term "invoice price", as used in this section, shall, in the case of sales for the Government, be deemed to mean the sale price of the commodity sold including items of cost such as cartage and freight, insurance, packing, marking and processing, warehousing and customs <luties and the Iike, where the same or any of such or similar items are payable by the vendee as part of or in addition to the sa Ie price.

The term "invoice priee" as used in this section, shall, in the case of purchases, be deemed to mean only the purchase priee of the commodity purchased by the Government.

The Corporation shall, with respect to any sale for the Government hereun·

der, be entitled to commissions at the rate aforesaid only On the amount of the proceeds of such sale collected by or for the account of the Government.

Anything in this Section contained to the eontrary notwithstanding, the Corporation shall not be entitJed to compensation under this Section with respect to developmental enterprises, for whieh special provisions are made in Artiele IV hereof.

3.14. On all purchases made for the Government, the Corporation shall have the right to add, Or to cause the ven dor thereof to add to the invoice priee thereof, the anlOunt of its commissions with respect to stlch transaction(s) and to cause sueh vendor to remit the amount of stleh additional sum to the Corpo- ration uron the reeeipt thereof by the vendor.

3.15. On all sales made for the Government hereunder, the Corporation shall, and is hereby authorized to, require as a part of the provisions for such sale(s) that the purchasers remit, or eause to be remitted, the proceeds of stlch sales to Ihe Corporation for the account of the Government. On all sales made for the Government where the proeeeds thereof are paid 10 or reeeived by the Corporation, the Corporation shall have Ihe righl 10 deduct from sueh proceeds the commissions due to the Corporation in respect thereof, and on all such sales where the proceeds thereof are not received by the Corporation, it may deduct and retain for its own use the am ou nt of such commissions from other funds of the Government coming into its hands.

3.16. In view of the costs and expenses which will be incurred by the Corporation in connection with its organization and its early operations, and the relatively low volume of business which may be anticipated during that period, the Government agrees as hereinafter provided to reirnburse the Cor-

15

(22)

poration in an amount, not in excess of the sum of $ 150,000.- equal to its losses during the twelve months, period next succeeding the effective date of this Agreement; su eh losses are to be determined <by the Corporation's accoun- tants in accordance with accepted principles and practices of accounting. In determining such losses, the cost of office furniture and fixtures and organization costs shall be amortized in accordance with accepted principles and practices of accounting, but irrespective of su eh principles and practices such items shall be amortized over a period not in excess of ten years.

The payment, if any, to be made to the Corporation under this Section, shall be made by the application of 25% of the proceeds of sales' made for the account of the Government and the Corporation shall have the right to deduct the same !rom such proceeds at the ra te aforesaid; provided, ho wever, that the Government shall not be liable for any deficiency it su eh proceeds are insuffi- cient, when so applied, to pay such amoLlnt in full; and provided, further, th at the Corporation will not make such deduction from the proceeds of any sale, if the deduction provided for in the first paragraph of Section 2.03 shall have been made from the proceeds of such sale.

3.17. In additioll 10 the exclusive agency hereby created, the Corporation may act as Ihe agent for the Government on a non-exclusive basis in effec!ing purchases and sales elsewhere than in the United States and in such event(s) the Corporation shall be entitled to the commissions provided in Section 3.13 of this Article 111 on all such purchases and sales so made.

3.18. The Corporation shall use its best efforts and endeavours to procure transportation and shipping for the commodities sold to and by the Go- vernment hereunder and shall have the right to select such shippers and carriers and procure such insurance on vessels and cargoes as it may deem desirabie.

T.he Government ag rees to cooperate fully with the Corporation and lend and extend its active aid and every assistance in arranging transportation and shipping for sLlch purposes.

3.19. The Corporation shall render monthly statements to the Govern- ment rellecting all transactions made by it for the account of the Government in the preceding month and shall, on or belore Ihe 25th day of each month, pay to the Government, or L1pon its order, or 10 any party or parties designaled by il trom time to time, Ihe nel amount due la il for Ihe preceding calendar month, af ter all proper credils and deductions due 10 the Corporation have been made. Such payment shall be made by the Corporation in the currency in which it was received by it.

Until payment to Or for the account of the Government as above provided, the Corpora ti on shall keep all moneys received by it for the account of the Government in a special bank account or accounts separate and apart from its other funds, for the sole use and benefit of the Government, subject, however, to the right of the Corporation to make thercfrol11 the deductions and charges provided herein and pay the same to itself.

3.20. The Corporation shall have the right to effect sales of purchases for the Government, or market commodities sold by it, through such of its wholly or partially owned subsidiaries 0 raffiliates as it may cause to be organized for su eh purpose (s) ..

16

(23)

3.21. Wherever reference is made in Ihis Agreemenl 10 purchases Or sales by or lor Ihe accounl of Ihe Governmenl, Ihe lerm "Government" shall also include any agency instrumenlality of governmenlal subdivision of the Govern- ment and any corporalion or similar entily conlrolled by Ihe Government.

3.22. It is cxpressly underslood and ag reed thai Fox and/or his associates may have a personal interest, as principal or otherwise in any purchascs or sales made for the Government by the Corporation hereunder and that the Cor- poration may make purchases anct sales for the Government hereunder from and to Fox and/or his associates and/or any person, firm or corporation in which Fox and/or his associates may be interested.

ARTICLE IV.

Development Projects and Financing Representation.

4.01. The Corporation is hereby constituted as the sole and exclusive agent of the Government for the term of this Agreement for negotiating with American interests (1) any and all arrangements by with such interests may undertake to carry on any developmenlal enterprise owned or operafed, or to bc owned or operated by the Government or over which it has or may exercise elleclive dominalion or control or 10 exploil any resources owned by the Go- vernment or over which it has or may exercise effeclive domination or conlrol and (2) any and all arrangemenls lor oblaining loans or raising lunds by sale ol securilies or olherwise for the Government whelher for financing any of such developmenlal enlerprises Or otherwise; the term "Government" as uscd in the foregoing sentence includes any agency, instrumelltality or governmental subdivision of the Government and any corporation or similar entity controlled by the Govcrnment. This Governmcnt agrees that among the projects and business 10 be carried on by it exclusively are communications, hydroelectric, railroads, highways, sanitation and public works programs. Is is recognized that there are certain areas of activity in which private interests will function, such as the aircraft industry, air transportation, shipbuilding and shipping operations, but to the extent th at such ac ti vi ties are subject 10 effective Con trol or domination by the Government, they are included within the scope of the Corporation's exclusive representation of the Governmcnt hereunder. In conducting such negotiations the Corporation shall work in close cooperation with such representatives of the Governmenl as may be duly accredited for Ihe purpose and shall keep such representatives lully informed as to the progress ol such negotiations. The Corporation is not authorized to make any agreemcIlI(s) on behal! ol the Governmcnt wilh respect 10 any ol Ihe foregoing unless and unlil such agreemelll(s) shall firsl be approved by the Governl11ent lor execution.

4.02. With respect to arrangemenls consummated Ihrough the negotiations of Ihe Corporation, the Corporation shall be entitled to such compensation for its services and reimbursement of ils expenses under this Artcle IV as may be expressly agreed between Ihe Corporalion anel the Governmenl, provided, however, thai the compensalion of the Corporalion shall always be lair and reasonable.

The Corporation is authorized to arrange, il the circumstances permit, that compensation for its services and reimbursement of its expenses shall be paid in whole Or in part by the partieular inleresls involved in any such transaclion 17

(24)

and in cases in which the interest involved agrees to pay the Corporation's entire compensation the Government shall not be obligated to compensate the Corporation.

4.03. In conducting the negotiations aforesaid, the Corporation shall use its best efforts to procure for the Oovernment the most favourable terms obtainable.-The Corporatioll shall have the right to participate as principal to such ex tent as may be agreed upon between it and the Government ió any projects which it is negotiating. It is expressly understood and agreed that Fox and/or his associates may have a personal interest, as principal or otherwise, 10 such extent as may be agreed to by the Government, in any developmental enterprise or financing herein referred to, and that the Corporation may negotiate with respect to any such developmental enterprise of financing with Fox and/or his associates and/or any person, firm or corporation in which Fox and/or his associates may be interested.

4.04. The Government agrees thai all inveslmenls in Indonesian enterprises, made as a result of the Corporation's efforts and activities will be fully and adequately safeguarded against all confiscatory or excessive taxa ti on, measures ol expropriation, restrietions on transfers of funds and discriminatory legislation Or regulation of every kind and character.

4.05. The services of the Corporation in making surveys, rendering engineering services and giving economie, commercial and financial advice and consultation if requested by the Government so to do are to be fairly and reasonably compensated for and such compensation together with the reasonable costs and expenses of the Corporation in connection therewith, shall be reimbursed to the Corporation in accordance with thc agreement made by the par ties at the time of undertaking same.

4.06. In addition to the exclusive agency created by this Artiele IV the Corporation may act as agent for the Government on a nOI1-exclusive basis for negotiating elsewhere than in the United States or with other than American interests with respect to developmentaI enterprises and financing of the character described in Section 4.01 hereof, its compensation therefor to be subject to agreement as provided in Section 4.02 hereof.

ARTICLE V.

Arrangements with Private Persons.

5.01. The Corporation and/or Fox and/or his associates, and any person, firm or corporation in which any of thcm may be interested, shall be entitIed to act for its, his or their own account, either as principal or agent, in import and export trade with and developmental activities and financing with or on behall of private persons and firms.

5.02. The Government will loster, encourage and assist Stleb business relationships between the Corporation and such private interests provided that stlch relationships are considered by the Government to be in the best interests of the Republic ol Indonesia. The decision as to whether they will enter into such relationships must rest with the private interests involved. Among other things, the Government will facilitate contacts between such interests and the Corpora ti on in order to encourage sueh business and \ViII advise them ol the opportunities available to the Corporation for carrying out such activities.

18

(25)

ARTICLE VI.

Management <lnd Stock Deposit.

6.01. Fox and the Corporation agree that he will accept the position ol Chairman ol the Board ol Directors ol the Corporation and that, during the term of this Agreement, he will take an active part in the management ol the Corporation, provided that he is physically able 50 to do. He shall not, however, be required to devote his lull time to the business ol the Corporation, but only such time as he, in his discretion, may deem necessary.

6.02. The Corporation agrees Ihal Ihe salaries to be paid to the executives and officers including Fox, of the Corporation shall not exceed from time to time the sum(s) agreed to between tlle Corporation and the Government;

except, however, that the Corporation may, trom time to time without such agreement, employ executives or officers (other than Fox whose compensation will be the subject of agreement as above provided) deemed by it la be "key men" provided the compensation to be paid any such "key men" does not exceed by more than 15% the salary received by him prior to employmcnt by the Corpora ti on.

6.03. The Government shall have the right to suggest for employment bv the Corporation as members of its executive staf! such substantial, although not major, number of competent Indonesians as it and the Corporation shall from time to time hereafter mutually determine. The Corporation ag rees to employ such Indonesians as the Government may suggest in the number aforesaid upon such terms and conditions as the Corporation may fix aml determine.

The Corporation shall endeavour to train the Indonesian personnel for the performance ol their respective duties with it.

6.04. Fox ag rees that 51 % of the shares ol Class A stock and all of the shares of the class B stock ol the Corporation to be purchased by him as herein provided shall be deposited by him under an appropriate deposit agreement which shall provide that the same shall be held by the depositary for the term of this Agreement and that, during such period, stlch stock shall not be red eli- vered to him without the written consent of the Government being first had and obtained. Similarly, the Government shall deposil all ol the stock ol the Cor- poration to be purchased by it as here in provided under the same deposit agreement and stlch stock may not be delivered during the term ol this Agree- ment except with the consent of Fox.

Such deposit agreement shall provide lurther for the issuance by the depositary of appropriate receipts for the shares deposited thereunder. Neither such

receipt(s) nor any interest in the stock represented thereby, may be assigned or transferred except upon the terms expressed in the deposit agreement. Such agreement shall further provide that (a) if the Corporation shall default in making payment of any sums due Fox and such default shall continue for a period of ten days after writlen notice thereof to the Corporation Or (b) if the agency created by Article lil hereof or the agency created by Article IV hereo!

shall have terminated by expiration of the term herein provided there fOT or by agreement between the Corporation and the Government, the shares deposited thereunder by Fox may be withdrawn from such agreement and delivered to

him. .

19

(26)

The certificate of Fox as to such default or termination, as the case may be, shall be sufficient to authorize the depositary to rely thereon and to deliver such shares to Fox.

Such agreement shall further provide that if the Government shall have terminated tnis Agreement pursuant to the provisions of Section 2.06 hereof, the shares deposited thereunder by Fox and the Government may be withdrawn by and delivered to the Government.

The certificate of the Government that this Agreement has been so term in- ated, shall be sufficient to authorize the depositary to rely thereon and to deliver such shares to the Government.

The deposit of shares of stock 'as aforesaid shall not affect the right of the registered holders thereof to vote the shares so deposited nor the right of su eh holders to receive dividends or other distributions made by the Corpora- tion with respect thereto, except dividends or distributions made in capital stock of the Corporation.

6.05. At the time ol the issuance of the shares of the Corporation to be purchased by the Government as here in provided, the Government shall execute and deliver to Fox lts proxy irrevocably appointing Fox its attorney and proxy, for a period of fifteen years arld six months for the purpose of voting or con- senting with respect to all shares of Class B stock of the Corporation owned by it on (a) proposal (s) to Iiquidate and dissolve the Corporation and to surrender its corporate privileges and Iranchises, which power and autohority may be exercised by Fox at any meetings of the stockholders of the Corporation or otherwise as permitted by Law but only (a) if the Corporation shall default in making payment of any sums due Fox and such default shall continue lor a period of ten days after written notice to the Corporation; or (b) if the agency created by Artiele 1lI hereof or the agency created by Artiele IV hereof shall have terminated by expiration of the term herein provided therefor or by agreement between the Corporation and the Government.

ARTICLE VII.

Approval and Tenn of Agreement.

7.01. This Agreement shalJ not be binding on the Government exeept in the respects otherwise herein expressly set forth, unless and until the same has been approved and authorized by the Working Commlttee of the National Con- vention of the Republic of Indonesia on behalf of the National Convention.

7.02. The effective date of th is Agreement shall be the date upon which an executed copy of th is Agreement shall be delivered to Fox, together with a Certificate of the Minister of Justice of the Republic of Indonesia certifying that this Agreement and the execution thereof have been duly approved and authorized by the working Committee aforesaid; that the persons and each of them, who executed th is Agreement on behalf of the Government are officials thereof duly authorized to execute and deliver the same; that all legal requirements of the Constitution and Iaws of the Republic ol Indonesia upon the terms hereof have been complied with; and that th is Agreement is a valid and binding obligation of the Republic of Indonesia upon the terms hereof.

7.03. The obligation of Fox and the Corporation hereunder, except as otherwise provided in section 2.01 hereof, are subject to the express condition precedent that this Agreement shall become eflective as above set lorth not later than March I, 1948.

20

of the Republican Indonesians in the Netherlands Indies and abroad contrar

AR CHIEFEXFMPLAAR

ACTlVITIES

of the Republican Indonesians in the Netherlands Indies and abroad contrar

. .

to the " .:,..~ -Y"'f:

*'

TRUCE AGREEMENT ~ ,

fJ

d "-~ -/

an " ",_ .. -;-

THE EIGHTEEN RENVILLE PRINCIPLES

,

...

Foreword

Contents

•

"

Agreement concluded between Suripno and the Soviet Union Minister at Prague and various comments thereon.

** *

*l

** *

Agreement between Republican Government and Matthew Fox of New York, N. Y.

IA

7Y2 %

Y2 %