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ROUND TABLE CONFERENCE

RESULTS AS ACCEPTED IN THE

SECOND PLENARY MEETlNG

HELD ON 2 NOVEMBER 1949 IN THE

" RIDD ERZAAL" AT THE HAGUE

punLiSHED BY THE SECRETARIAT-GENERAL OF THE

ROUND TABLE CONFERENCE

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TABLE OF CONTENTS 1. Covcring Resolution

Page 7 Il. Draft Agreements:

I. Draft Charter of Transfer of Sovcreignty 2. Draft Union Statute .

Appendix 10 the Draft Union Statutc . Attached draft agreements:

(I. Draft Agreement between the Repllblic of the United States o[ Indonesia anel thc Kingdom of the Nctherlands 10 regulate their cooperation in the

9 10 16

field of foreign relations . 19

b. Draft Agreement for the implementation o[ articles

2 anel 2i of the Union Statute . 20

c. Draft Financial & Economie Agreement 23 Appendix 10 the draft Financial & Economie Agreement:

List of Trade- allel Monetary Agreements in which

Indonesia participates 36a

d. Drart Cultural Agreement between thc Rcpublic of the Unitcd Slates of lndonesia and the Kingdol11 of

the Nctherlands 37

3. Draft Agreement on Transitional Measures 41 Attached drart agreements:

ll. Draft Agreement concerning thc assignmcnt of

citizens 45

b. Draft Agreement conccrning the position of the Civil Governmenl Officials in connection with the

transfer oC sovereignty . 50

Appendix to thc Draft Agreement concerning the position of the Civil Government Officials in con- nection with the transfer of sovereignty 52 Draft Agreement on rendering assistance with regard to personnel by the Kingdom of the Nether- lands on behalf of the civil services of the Republic of the United States of lndoncsia and vice-versa 54 c. Draft Regulations on militaryaHairs 55

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Page 1. Regulations on the Netherlands naval forces in

Indonesia after the transfer of sovereignty . 55 Attached map naval base Surabaja . . 60a ]1. Regulations on thc land forces in lndonesia

lIntier Netherlands command aFtel' the transfer

of sovereignty . 64

11 L Rcgulations on thc air forces in lndonesia under Netherlands command aft!f the transfer

of sovereignty 77

lIl. Excha nge of Letters:

A. conccrnillg the draft Charter of Transfer of Sovercignty:

Exchange of Ictters with regard 10 article 2 of the draft

Charter of Transfer of Sovcreignty 79

B. concerning the draft Union Statutc aod the attached draf! agreements:

a.

Exchange of letters on the acting of the Netherlands as Union partner in allel on bchalf of the Kingdom

of the Netherlands . 81

b. Exchange of letters on the traeing of graves of those who feil and matters connccted therewith as weil as

on the flelds of honour . 83

c. Exchange of letters on the exchange of Military

MIssions , 85

d. Exchange of letters on the maritime contribution to be made by the Netherlands 10 the Republic of thc United Statcs of lndonesia on the basis of articJcs 4 and 5 of the draft Agreement for the implementa.

tion of articles 2 and 21 of the draft Union Statute 99 e. Exchange of letters attached to tbc draft Financial

& Economic Agreement on six points of a financial

and economie nature 101

Appendix referred to in point 5 of the letters

exchanged 103

r ·

Exchange of letters on the annulment of the tin agreement contracted between the body·corporate State of the Netherlands and the body·corporate Indonesia and on an arrangement to safeguard Ihe

Nctherlands against risks 110

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Page g. Exchange of letters on nmwal consultation on the

legislation on natlonality . 112

11. Exchange of letters on provisions in the legislation on nationality or the partners with regard to the service of nationals of anc partner with the other

partner 114

i. Exchange of letters on the rights concerning civil

procedure 116

j. Exchange of letters on the exchange of High Cam·

missioners I) 8

k. Exchange of letters on the provisions in articlcs 8 and 8 of the draft Agreement on Transitional Mcasures and institution of the Offices of the High

Commissioners 122

C. conccrning the draft Agreement on Transitional Measures and the attached draft Agreements:

Exchange of letters on the institution of two prepara- tory committees fOf

I. the withdrawal or reorganization of the air farces under Netherlands comrnand and

2. the execution of the provisions or the Naval

Agreement 125

Enclosurc:

An English translation of the Constitution of the Republic of the United Stales of Indoncsia which as a draft in the Netherlands language has been brought to the knowlcdge of thc Delegation of the Kingdol11 of (he Netherlands by the Indonesmn Delegatiolls.

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COVERING RESOLUTION The Delegations of:

I. The Kingdom of the Netherlands,

2. Thc Governmcnt of the Republic Lndonesia, 3. The Fcderal Consultative Assembly,

Considering that lhey have assem bied al thc Round Table Con- ference to achieve al the earlicst possible time, an appropriate and lasting solution of thc Indonesian conflict by rcaching agreement between thc participants on thc way of transferring real, complete and unconditional sovereignty 10 the Republic of the United States of Jndonesia. in accordance with the Rcnville-principles;

Considering that this aim has been achieved in good coopcration;

Considering lhat the United Natiolls COl11mission for Jndonesia has. givcn valuable assistance:

Have reached the following decision:

I. the results of the Round Table Conference are embodied in draft agreements and in letters, which documents are attached to th is resolution.

11. A. The draft agreements are the following:

I. the draft Charter of Transfer of Sovereignty:

2. the draft Union Statute including appendix and special agreements on the principal subjects of fulure coopcra- tion;

3. the draft Agreement on Transitional Measures Încluding special agreements on thc settlement of those subjects, which requirc provision as a result of thc transfer of sovereignty.

B. Thc Delegations have expressed their respective points of view on a nllmber o( separate issues in an exchange of letters.

Hl. The documents enumeraled under A and Bare drawIl up in the Netherlands and in Ihe Lndonesian languages. Both texts have equal valuc.

The ollicial English lext wil! prevail in case of divergent inter- pretation of the Netherlands and Indonesian texts.

IV. The acceptance of Ihis resolution by the Kingdom of Ihe Netherlands on the one side and thc territories acceding to thc Republic of thc United State5 of Jndonesia on the other side wil! be considered Ihe ratification of lhe documents attached to Ih is resolution. The ratification by party will loose validity, if any other party does not ratify this resolution.

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V. The agreements referred to under 11 wil! cOlTIe Înto force at the moment of the transfer of sovereignty which wil! take place at a (ormal ceremony at Amsterdam, to be held not later than 30 December 1949.

VI. The United Nations Commission [or lndonesia or all ot her United Nations Agency shalJ observe in Indoncsia the imple- mentatien ef the agreements reachcd at tr.c Round TabJe Cenfereïce.

w .

DREES

Tlte Chairman of rhe Rof/tu/ Table Conference

M. J. PRINSEN Tlte Secre/ary General of tlte

ROUI/d Table Conference

The Delegatioll of/he Federal COlIsultatil'C Assembly

HAMID

Cltairman. Tlte Delegation of the Kingdom

of fhe Nerherlands J. H. VAN MAARSEVEEN

Chairmall.

Tlte Delega/ion of tlte Governmellt of rite Republic Jndoflesia

MOHAMMAD HATIA Clrairman.

Tlte Unired Nariolls Commissio"

for Jndonesia R. HERREMANS

Cltairman of tlte week.

H. MERLE COCHRAN lvfember.

Th. K. CRlTCHLEY Member.

F. A. ROMANOS

PrinCÎpaJ Secrelary.

NOfC. In the English lext the covering resolulion has been signed rirst by the Chairm:ln of thc Dclcgation of the Federal Consultative Asscmbly, in the lndoncsian language it has been signed fiTst by thc Chairman of the Delcgation of the Governnlcnt of the Republic Indonesia, and in the Netherlands lext it has been signcd first by the Chairman of the Delcgation of lhc Kingdom of lhe Netherlands.

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DRAIT CHARTER OF TRANSFER OF SOVEREICNTY Article I

1. The Kingdom of the Ncthcrlands unconditionaJly and irrevocably transfers complete sovereignty over Indonesia to the Republic of Ihe Unitcd Statcs of Indonesia and thereby recognizcs said Republic of the Unitcd States of Jndonesia as an independent and sovereign State.

2. Thc Republic of the Unilcd Suites of Indonesia acccpts said sovereignlyon tbc basis of the provisions of ils Constitution which as a dran has been brought 10 the knowledge of the Kingdom of the Netherlands.

3. The transfer of sovereÎgnty shall take place at the latcst on 30 Deccmber 1949.

Article 2

With regard lO the residency of Ncw Guinea it is decided:

a. in view of the fact lhat it has not yet been possible to reconciIe the views of the parties on Ncw Guinea, which remain, therefore, in dispute,

b. in view of the desirability of the Round Table Conference con- c1uding successfully on 2 November 1949,

c. in view of the important factors which should he taken ioto account in settling the question of New Guinea.

d. in view of the limited research that has been undertaken and completcd with respect to the problems involved in the question of New Guinea,

e. in view of the heavy tasks with which the Union partners wil!

initially bc confronted, and

f in view of thc dedication of the parties to the principle of rcsolving by pcaceful and reasonabJe means any differences lhat may hereafter exist or arise belween lhem,

that the status quo of the residency of New Guinea shall he maintained with the stipulation that within a year from the date of transfer of sovereignty to the Republic of the United States of Indooesia the question of tbe political status of New Guinea be determined through negotiations between the Republic of Ihe United Statcs of Indonesi.

and the Kingdom of the Netherlands.

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DRAFT UNI ON STATUTE

The Kingdom of the Netherlands and the Republic of the United Statcs of Jndonesia,

having resolved on a basis offree will, equality and complete independ- ence to bring about friendly cooperation with each ather and to create the Netherlands lndonesian Union with a view 10 effectuate th is future cooperation,

have agreed 10 lay down in Ih is Statute of thc Union the basis of their mutual relationship as independent and sovereign Statcs,

thercby holding thaI nothing in this Statute shall be construed as excluding any form of cooperation not mentioned therein or cooperation in any field not mentioncd therein, the need of which may be feit in the future by bath partners.

CHARACfER OF THE UNION Articlc 1

I. The Netherlands Jndonesian Union cffectuates the organizcd cooperation between thc Kingdom of the Netherlands and the Republic of (he United States of rndonesia on tJle basis of free will and equality in status with equal rights.

2. The Union does not prejudice the status of each of the two partners as an independent and sovereign State.

PURPOSE OF THE UNION ArticJe 2

I. The Union aims at cooperation of the partners for the promotion of their common interests.

2. This cooperation shall take place with respect to subjects Iying primarily in the field of foreign relations and defence, and as far as necessary, finanee, and also in regard of subjects of an economie and a cultural nature.

ArticJe 3

1. The two partners undertake to base their farm of governrnent on the principles of democracy and to aim at an independent judiciary.

2. The two partners shalJ recognize the fundamental hurnan rights and freedoms enumerated in the Appendix to this Statute,

PROCEDURE OF THE UNION ArticJe 4

All decisions in the Union shall be taken in agreement between the two partners.

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2. The members of the Court shall be appointed fOf a period of ten years. They shall resign in <lny case once they reach the age of sixty five years.

3. The chairman shall be elccted, every ycar a Netherlander and an lndonesian in turn, by and from amongst thc members of the Court.

4. Prior to taking up their oflke, tJ,e mcmbers of thc Court shall.

before the Hend of the Union, take the oath or make thc promise in accordancc with their religious raith, that they shall rulfi! their office honestly, scrupulously and impartially and shall comport thcrnseJves in the excrcise of their duties as befits a good member of thc Union Court of Arbitration.

ArticIc 15

I. The Union Court of Arbitration shall decide by majority of votes.

2. Tn case voles are equally dividcd the Court shall, unless the lwo partners otherwise request, call upon the President of the International Court of lustice or upon all other international authority, 10 bc desig- nated by majority of vatcs, with the request ta appoint a person of an olher nationality as special member of Ihe Union Court of Arbitra- tion, who, ha ving the rights of an ordinary mcmber, shall take part in a renewed consideration of the dispute and in the decision thereon.

Articlc 16

Furthcr provisions conccrning the rules of procedure, the organization and regulation of Ihc activities of Ihe Union Court of Arbitration shall be established in a joint regulation. As long as such a joint regulation does not cxist. thc Court ilsclf shall determine its rules of procedure and the organization and rcgularion of its activiti,s, paragraph 2 of the preceding art iele being applicable if no agreement can bc reached in th is matter.

Artic1e J 7

The two partners undertake to comply with the decisions of the Union Court of Arbitration and to implement such decisions under their own authority and responsibilîty each within his own territory.

Article 18

In case of conflict between provisions of the !aw of the partners and of the public bodies within their jurisdiction on the onc side and the Union Statutc or any agreement between the partners or a joint regulat- ion on the other, the latter category of provisions shall prevail.

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ArticJe 19

Thc two partners reserve all their rights under international law or btherwise 10 solicit the decision of an international court or arbitrator in cases where bath partners consider the Union Court of Arbitration incompetent or in cases where thc Court declares itself incompetent.

FOREIGN RELATIONS ArticJe 20

Provisions concerning the cooperation between thc partners in the field of fafeign relations are set forth in the agreement attached to the present Stalutc.

DEFENCE ArticJe 21

Provisions concerning the cooperation bctween thc partners in the field of defcnce are set forth in the agreement attached to the present Statute.

FINANClAL AND ECONOM[C RELAT[ONS ArticJe 22

Provisions conccrning thc coopcration bctween the partners in the field of tinancial and economie relations are set forth in the agreement attached to the present Sta tu te.

CULTURAL RELATIONS

ArticJe 23

Provisions concerning the cooperation between the partners in the cu Itural field are set forth in the agreement attached to the present Statute.

NAT10NALlTY Articlc 24

I. Without prejudice to the provisions made or stiJl to be made in special agreements between the partners, with regard to the exercise of political and other rights by nationals of one partner within the jurisdiction of the other partner, the foIIowing shall apply:

a. the nationality of one partner shall not constitute an objection against serving omcially within the jurisdiction of the Ol her partner, except for:

1 a. offices, the hol der of which is responsible to a reprcsentative body, unJess the law should provide otherwise;

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20. those political, authoritative, judicial and leading offices which are specified as such by law;

b. with regard to the exercise of civil rights and social activities, each partner shall always fully appreciate the special interests within his jurisdiction of the nationals and corporate bodies of the other part- ner, and therefore shall make no appreciable discrimination between their respective nationals and corporale bodies, without prejudice to the power of either p<:lrtner to establish regulations required for the protect- ion of their national interests or for the protection of cconomically weak groups.

2. On no account shall the nationals and corporate bodies of either of the partners receive within the jurisdiction of the othcr partner treatment lcss favourablc lhan nationals and corporale bodies ora third State.

SPECIAL PROV1SIONS Article 25

To further the interests of the partners within each ot he r's territory the Governments of the partners shalJ appoint High Commissioners.

These shall have the status of diplomatie representatives with the rank of ambassador.

Article 26

I. Unless otherwÎse agreed each partner shaIJ bear onc half of the expenses of the Union.

2. Further provisions in respect of the expenses of the Union shaU be established by joint regulation. As long as such a joint regul"tion does not exist, thc conference of ministers shall make the necessary provisions.

Article 27

I. All onlcial doculllcnts, issued by the conference of ministers or by other Union organs shall be in thc Netherlands and Indonesian languages.

2. Both texts shall be equally authentic.

Article 28

The Union Statute and the agreements pertaining thereto as weil as the joint regulations and future agreements may be presented to the Secretariat of the United Nations for registration in accordance with article 102 of the Charter of the United Nations.

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APPENDIX TO THE DRA FT UNION STATUTE

Thc fundamental huma" rights and frcedoms recognized by thc partners in virtue of article 3 of the Union Statute and which everyone is cntitled 10 excrcise and to enjoy without discrimination of any kind on thc ground of race, colour, sex, language, religien, national or social origin. property or birth, are:

I. (1) Everyone is recognized as a person before the law.

(2) All are entitled to equal treatment and equal protection of the law.

(3) All are entitled 10 equal protection against any discrimination and against 3ny incitement 10 such discrimination.

2. All persons within thc territory of the State are entitled to equal protcetion of person and properly.

3. (I) Everyone has the right 10 liberty of movement and residence within the borders of the State.

(2) Everyonc has the right to leave the country and - being citizcn or resident - to return 10 his country.

4. No Dne shall be arrested or detaincd exccpt upon the orders of the officer authorized thereto by law and În the cases and in the manner as established by law.

5. (I) Everyone's home is inviolablc.

(2) No premises or home shall be entered against the will 'of its occupant except in cases provided for by a law applicable 10 that Dccllpant.

6. Thc frcedom and secrecy of correspondence are inviolable, excepl by order of the jlldiciary or officers authorized by law in the cases defined by law.

7. Everyone has the right to freedom of thought, conscience and religion. This right incJudes freedom to change his religion or belief and freedom, either alone or in community with others and in public or private, 10 manifest his religion or belief in teaching, practice, worship aDd observance of the commandments aod prescriptions and by educating the children in the faith or belief of their parents.

8. Everyone has the righl 10 freedom of opinion and expression.

9. Thc right of the residents to frecdom of peaceful association and assembly is recognized aod as far as ncccssary guaranteed by law.

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10. (I) Everyone has the right to own property alone or jointly with ot hers.

(2) No one shall he arbitrarily deprived of his property.

11. (I) Everyone, according to his ability, has lhe right la available work, lo free choice of employment and to jusl conditions of work.

(2) Everyone who works has the right to just remuneration ensuring for himself and his family an existence in accordance with human dignity.

12. Everyonc has the right to form and to join trade unions for the protection of his interests.

13. (I) Teaching is free, subject to the supervision 10 be exercised by public authorities in accordance with the law.

(2) Thc choice of education is free.

14. The State sha1l promote social security to the extenl of its ability, in particular by ensuring and guaranteeing favourable conditions of employmenl and of work by preventing and checking un- employment and by promoting reasonable old age provisions and care for widows and orphans.

15. (I) The raising of the prosperÎty of the population is an object of continuous concern of the State, the aim of which shall be that everyone be ensured a standard of living ror himself and his family in accordance with human dignity.

(2) Except whcre lhe law imposes limitations which are in the general interest, opportunity to take part in the development of the sourccs of prosperity of the country shall, to lhe greatcst possible extcnt, be ofTered (0 all on an equal footing in accord- ance with character, disposition and ability.

16. Thc fami1y has a right to protection by society anel by the $."te.

17. (I) The State shall promote as much as possible the spiritual and physical development of the population.

(2) Thc authorities provide where nccessary for public education to he given on a basis of tolerance and equal respect of every- one's religious convict ion and with the opportunity, during school hours, for religious teaching accoreling to the wishes of the parents.

(3) The pupils ofa private school which complies with the standards of efficiency imposed by law on public education shall

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have the same rights as those accorded to pupils of public schools.

(4) The freedom is recognized to perform social and charitable work, to set up organizations therefore as weIl as for private education and to acquire and own property to these ends.

J 8. The promotion of public hygiene and pubJic health are an object of eontinuous concern of the State.

19. The State shall graat equal protection to all reeognized reljgious communjties and organizations.

Each partner shaU maintain within his jurisdiction the free exercise ofthe fundamental human rights and freedoms set forth in this appendix, and shall observe the international treaties and internationally aeknow- ledged principles of law concerning the exercise thereof.

The exercise of the rights and freedoms set forth in this appendix, may be restricted for no otber rcason than to consider the rights and freedoms of others, morals, public order and the general welfare in a democratie constitutional order.

IS

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DRAFT AGREEMENT BETWEEN TUE REPUBLIC OF TUE UNITED STATES OF INDONESlA AND TUE KINGDOM OF THE NETHERLANDS 1'0 REGULATE THEIR COOPERATION

IN THE FIELD OF FOREIGN RELATIONS

The Republic of the United States of lndonesia and the Kingdom of the Netherlands inspired by an equal desire to achievc cooperation in the field of their foreign rclations,

have decided to conclude [he following agreement to rcgulate such cooperalion.

Article 1

The Netherlands Indonesian Union shall effectuate cooperalion in the field of foreign relations.

Where bath partners feel t.hat il is in their interest and sa decide, the conference of ministers may provide for joint or common representation in international intercourse.

Article 2

On the primary consideration of the principle that each of the partners conduets his own foreign relations and determines his own foreign policy, tbey shall aim at coordinating their foreign policy as much as possible aod at consulting each other thereon.

Article 3

Neither partner shall conclude a treaty, nor shall he perform any other juridical act in international intercourse, involving the interests of the other partner, unlcss afler consultation with said partner.

Arlicle 4

ln case anc o[ lhe partners has not accrediled a diplomatie representation in a foreign country. he shall have his interests represented by preference by the diplomatie rcpresentation of the other partner to said foreign country.

Anicle 5

rn case one of thc partners requests technicalor other cooperation for the conduct of his foreign relations, thc other partner shall extcnd sllch coopcration to thc best of his ability.

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DRAFT AGREEMENT FOR THE IMPLEMENTATION OF ARTICLES 2 AND 21 OF THE UNION STATUTE The Kingdom of the Netherlands .nd the Rcpublic of the United States of lndonesia,

"in pursuance of the provisions contained in articles 2 and 21 of

the Union Statutc, have ag reed as follows.

Article I

Each of lhc partners shall bear (uil responsibility for lhc deCence of his own territory.

Provisions to this effect shall be made byeach of thc partners.

Article 2

Tbe joint regulations referred to in art iele 12 of thc Union Statute shall be implemented independently by ca eh of the partners within his own area of jurisdiction.

Article 3

Without prejudice to the provision of article 2, lhc cooperation may find expression in assistance 10 be givcn by Qnc partner to the other, if sa requested, in 50 far as in thc former's opinion the assis·

tance applied for is compatible with his capacity and his own needs.

and in particular with the interests of his own dcfcnce.

Article 4

The assistance referred to in article 3, may inter alia consist of:

a. training and higher training of officers, non·commissioned officers, speciaJized military personnel anel civilian auxiliary per·

sonnel;

b. making personnel available;

c. making materiel available;

d. offering facilities and rendering assistance for the maintenance and repair of materiel of the olher partner.

ArticJe 5

Should one of tbe partners request to make available in his area of jurisdiction units of tbe armed forces of the ot her partner, the partners may conclude an agreement to this effect.

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Article 6

1f, in pursuance of articles 4 and 5, ane partner renders assistance 10 the ot her, thc expcnses involved in reodering such assislancc shall.

unless otherwisc agreed in special cases, be borne by thc partner who has applied f or said assislancc.

Artic1c 7

Thc partners shall exchange military missiOllS. Thc conditions lImler which said exchange shall take place, thc composition alld thc terms of reference of these missions, shall be regulated by lhc Governments of Ihe partners in mutual consultation.

A partner, contemplating 10 invite Or receive a military mission of a third power, shall prcviously consult thc other partner in th is respect.

Article 8

Thc two partners shall consult wilb one another in the event of threat of aggression to bath partners or to anc of the partners.

Article 9

lf a parlner wishes to procure materiel (or his armed (orces (rom olltside his own territory he shall consult the ot her partner as much as possible as 10 the manner in which they mayassist each other in Ihis respect.

Article 10

J( a partner givcs information concerning his de(cnce to the other partner, the latter is - also in regard of an ally - committcd to secrecy, unless he is explicitly exempted [rom th is obligation by the former partner.

1f persollIlei of one partner, by reason of t-he cooperation visual- ized in lhis agreement, is admitted to the area of jllfisdiction or -to organizations of the ot her partner, tbe [ormcr partner shall do his lItmost in order that said personnel maintain secrecy on all dcfcilce matters o[ the other partner which may co me to thcir knowdledge.

Article 11

The partners shall effect an arrangement on the law on military penal procedure, tbc military penal law and the law on military discipline, to be applied to military personnel of a partner, which personnel, by reason of the performance of duties arising out of the coopcration bet ween the partners, is within the area of jurisdiction o[ the ot her partner.

In ef(ecting said arrangement the partners shall take into con·

sideration similar arrangcmcnts in other countries.

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ArticJe 12

Unless the partners agree otherwise, merchant vessels and civil aircraft under tbe flag of a partner may, jE one of the partners is illvolved or is in danger of becoming involved in a war, be requisit- ioned or miLitarized only by the latter and not by the former. irres- pective of the location of said ships and aircraft.

The former partner however shall in this case consult the athef partner iE the merchantmen or the civil aiTerait is within the latter's area of jurisdiction.

ArticJe 13

The partners shall make arrangemcnts concerning the Tules which shall apply, when naval units or military aircraft of ane partner afC present in or near the area of jurisdiction of the ather partner and call at ports or airports in said area of jurisdiction.

ArticJe 14

Pending an arrangement between the partners concerning tbe compuJsory military service of their respeclive subjects, thc sub- jects of one partner shall not be compelled la serve in thc armed forces of the other partner.

As long as any resident of either partner shall have thc right of option in respect of his future nationality, under the provisions accepted at the Round TabJe Conference, th is person shalL not be ca lied for military service by one of the partners.

Artielc 15

This agreement shall not prcjudice upon the rights and obligations of the partners under the Charter of the United Nations or under international arrangernents based thereon.

Article 16

As soon as possible the partners shall consult with one another on t-be elaboration of the principles contained in the foregoing articles, and undertake such measures as may be considered useful by the Governments concerned in mlltual consultation for thc correct achievement of the aims of the Union Statute and of the present agreement on defence matters.

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DRA FT FINANClAL & ECONOMIC AGREEMENT The Kingdom of the Netherlands and the Republic of the United States of Indonesia guided by the desire 10 rcgulale the IlCW relatiolls in the financÎal and economie field created by the transfer of SQver.

eignty and 10 rcach cooperation in this field;

In consideration of articlcs 2 aod 22 of the Union Statute;

Have resolved 10 conclude the following agreement.

SECTION A

RIGHTS, CONCESSJONS, LlCENCES AND OPERATJON OF BUSINESS ENTERPRISE

Articie I

I. .In respect of the recognitÎcl!1 and restoration of the rights, con- cessions and Licences properly granted under the law of the Nether- lands Jndies (Indonesia) aod still valid on the date of transfer of sovcreignty, the RepubJic of the United States of Indonesia will adhere 10 the basic principle of recognizing such rights, concessions and licences. The Republic of the United States of Indonesia also recognizes, in so far as this has not yet been done, that the rightful claimants be reslored to the actual exercise of their rights under the proviso referred to in the following paragraphs of this article.

2. The Republic of the United Stat es of lndonesia reserves the right to conduct all investigation in respect of important rights, con- cessions and lieences granted af ter 1 March 1942 which may in- flucnce the economie policy of the Republic of the United Stales o( Jndonesia, for the purpose of considering whether Ihe application of article 2 is desirabie.

3. Account shall be taken of:

a. The situation resulting [rom the fact that, during the Japanese occupation and the subsequent period of revolution, estate grounds, on which the crops were removed for the benefit of food-cultivation or to l11ake way for hOllsing, were occupied by the population - with ihe approval of the Japanese authorities during the occupation - and that in certain cases the removal of the poptliation concerned from these grounds without fmther consideration and the return of slich graunds ta the cstates concerned would create too much tlnrest

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and that slich a return is of ten impossible. Each casc shall be judged on its own merits and a sol ut ion shall be soughl acceptabJe for all parties cOllcerned.

b. The necessity that cerlaÎn private properties remain (are) tem- porarily requisitioned against indemnity for govcrnment service in the interest of the country.

c. The withdrawal under the Undang·Undang Rcpublik lndo- nes la 1948 Nr. 13 of the convcrsiotl rights in thc rcsidcncies of Jog- jakarta and Surakarta which was nccessit:ltcd by changed conditions in general :!l1d changcd views of the population in particular. In this case, thc Republic of the United States of Indonesia will arrange for the legal provisions rcquired to cnsure thc cnterpriscs concemcd tbe greatest possible security in respect of the acquisition of the lands req uired (or these enterprises.

4. The possibility that public utilities, such as privately owned rail- and lramways and powerplants (gas and clcctricity) wiIJ be nationalized by the Republic of the United States o[ Indonesia which will be carried out by way of expropriation C.q. "naasting", shall bave no influcnce llpon the reinstatemenl of the rightful claimants in the aClltal excrcisc of their rights. In th is lcgal restoration, account may be taken of the form of managcment of the rail- and tramways at thc time oC transfer of sovereignty.

Article 2

The rights, concessions and liccnces refcrred to in article 1, paragraph I, may be infringed upon only in thc public interest, in- c1uding the welfare of the pcople, allel through amicable settlement with thc rightful c1aimants, and if the latter can not be achievcd, by expropriation for the public bcnefit such in accordance with the provisions of anicle 3.

Article 3

Expropriation, nationalization, liquidation, compulsory cession or transfer of propenies or rights, shall take place exclusively ror tbe public bencfit, in accordance with the procedure prescribed by law and, in the absence of an agreement between the parties, against prcviously enjoyed or guaranteed indemnity to be fixed by judicial decision at the real value of the object involved, slIch in accordance with provisions to be prescribed by law.

The conditions of previously received or previollsly guaranteed in- demnity due do not apply in cases whcre war, threat of war, insur- rection, rirc, floods, earthquake, volcanic eruption or other emer- gencies require immediate seizure.

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Article 4

On bchalf of existing and new enterprises and estatcs, the possi.

bility wil! be made availablc for an extension, a renewal or the granting of rights, concessions and licences required for their oper·

ation. This will take place at such conditions, and ror a period and at a time so as to enable the enterprises remaining or being opera led on a sound business basis and the law[ul Qwncrs bcing guarantced a eontinuity rnaking possible the investmcnts required [or normal long term business operations, exccpt in those cases whieh are in con·

travention with the public interest incJuding the general economie poliey of thc Republic of thc United States of Indonesia.

Artiele 5

Thc enlcrprises and estates wil! eoopcrate with and enable participation of lndonesian capital subject to this being justified (rom a business point of view.

Article 6

The Rcpublic o( the United States of lndoncsia will make the provisions required 10 safeguard thc law[ul owners excrcising their rights, concessions and licences referred to in artiele I, first para·

graph, 10 proll1ote resurnplion and lastingness of economie activity.

In lhis respect, however, it shall be borne in mind Ihat the general economie policy 10 be pursued by the Republie of the UnÎted Statcs of lndonesia shall in the firsl plaee be focused on the economie buil- ding up oF the Indoncsian community as a whoIc, in thc scnse that the interests and malerial and spiritual progress of the I ndoncsian people as a wholc are best served by ereating a maximum o[ cffectivc purchasing power and raising the stanclard of living of the people.

Article 7

In regard LO all rights. conccssions and liccnses referred 10 in art iele I, paragraph I. which could not be excrcised as a rcsult of thc war, occtJpation Jnd the subscqucnt abnorm31 conditions, the possibility will be made avail3blc that at the request of the Iawful owners, these

1 igh15, conccssions and licenccs be extended for a corrcsponding period cxcepl in those cases whcre sueh an cxtension is in contravention wilh thc public interest induding the general economie poliey of thc Rcpublie of lhc Ullited States oC Indonesia.

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ArticJc 8

The burdcns imposed on business as a consequence of fiscal meas- ures and social and other rneasures customary in a modern country wiU be kepI wilhin such reasonable limits that under normal circum- stances business can be carried on, permitting normal replacements, depreciations and reserves and permitting a reasonable profil for the capital invested in the enterprises.

ArticJe 9

The manner of operating enterprises and the freedom of commerce, enterprise and monetary intercourse can be restricted by law only.

Arlicle 10

Parties acknowledge the necessity of aD independent [iscal judiciary.

They wil! make regulations to prevent double taxation.

Arlicle 11

NetherJands nationaJs, corporale bodies, products, vessels aod other objects enjoy na Jess favourable treatment in lndonesia thao that accorded to any third country.

Foreigners of aU flaltoos will have equal rights in the participation o[ trade with Jndonesia and in the economie activity and industrial dcvelopment of thai country. The Repllblic of thc United States of Jndonesia however recognizes that the special interests of Nelherlands nationals and corporale bodies within lndonesia wil! be [ully taken into account and further that no discrimination wiJl take place in respect of the interesIs referred 10, without prejudice tot the right of the Republic of the Unitcd States of Indonesia to make such reguJa- tions as are necessary for tbe protection of national interesIs or ecollomically weak groups.

The provisions made in this article on behalf of the Netherlands apply mutually bet ween the Netherlancls and Indonesia.

Artiele J 2

I. Apart frol11 the general obligation that employers in respect of their enterprises have to submit to the laws of the country, the enlerprises (estates) shall - in the interest of sociaJ peace and order and ror the improvemcnt of social conditions - cooperale in applying provisions such as:

a. aiming at the institution of organized consultation between employcrs and employees in thc entire field of labour relations:

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b. promoting graduaJly the achievement of joint interests between the employers and labourers. c.q. Jandowners, in order that the interests to be purslled will grow logether and that these Jabourers anel landowners attain a higher standard of living;

c. improvemcnt of housing and other social welfare arrangemcnls for labourers;

d. the inclllsion within the earliest possible period of cligible Indonesians into the directÎon (and management) and staffs of the enterprises. and cooperation in establishing training courses with the objective that af ter areasonabie period, the predominant part of the leading staf( personnel of thc enterprises wil I consist of Indo- nesian nationals;

e. the residing in Jndonesia of organs vestcd with ruil power of those enterprises which main field of operations is jn lndonesia.

2. Employers, on matters referred to under a- d inelusive, also shall display jniliative on the understanding however that the Govern- ment requirements in this field in respect of fareign investments shall not go beyond those stipulated for Tndonesian enterprises of a similar nature and size.

Article 13

In the event of any alteration in the existing agrarian rcgulatiol1s in the public interestj the interests of the lawful owners and in particular the security of enterprise wiJL be taken into account.

SECTlON B FINANClAL RELATlONS

Article 14

The Nctherlands alld the Republic of the United Statcs of ]n- clonesia shall each aim at a sound monctary system based on the principles cxprcssed in the Bretton Woods agreements. This requires, inter al ia, that in each country a single circulationbank shall opera Ie.

The monetary pOlicy of each of the two countrÎes shall 3im at achieving and mêlintaining a stabJe internal and extcrnal vaJue of the currellcy and shall aim at promoting free convertibility of ex- change.

Article 15

As long as the Republic of the United States of fndonesia has not yet acquired membership to the International Monetary Fund, the Republic of the United States of lndonesia shall ad here to the mIes 10 be observed by a member of the Fund.

27

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Furthermore consultations shall be held bctwecn the Netherlands and thc Republic of the United States of Indoncsia to enablc tbc lalter lO become at the earliest possible date a membcr of the Inter- national Monetary Fund.

Arlide 16

Prcvious consliltation shall be held betwcl!n thc two countries conccrning any altcration of thc rate of exchange of thc currency of thc Netherlands nnd of thc Republic of the Unitcd Statcs of ]n- doncsia.

Arlide 17

As long as the international or interna I circul11stances necessitate foreign exchange contral, thc Netherlands and the Republic of the Unitcd Statcs of lndonesia shall consult cach other on foreign ex- change pollcy in respect of matters which arc of real importancc

to thc other party.

Arlide 18

I. Subject to thc proviso referred to in paragraph 5, the Republic oC the United Stales of lndonesia allows transfer to the Netberlands:

ll. for enterprises constituting an active Netherlands investment, of:

I. Ihe cxpenditures required in the Netherlands on behalf of the enterprise in lndonesia;

11. the contributions 10 pensionfullds, or funds [or invalids, widows and orphans and other social provisions for personnel to tbc extent that the premiums and conlributions arc rcquired to cover payments to Nctherlanders;

11.1. interests and contractually (ixcd amortization of loans com- mittcd in the Netherlands on bchalf oC the enterprise in Indonesia;

IV. annual profits and depreciations in accordance with sound business practice;

b. of dividends concerning passive investmcnts from tbe Nether- lands;

c. for premiums to life insurance companies and for contribut- ions 10 pensionfunds, and funds for invalids, widows and orphans and other social provisions, by employer as weil as employee, re- quircd to cover paymcnts to Nctherlanders;

d. to Ncthcrlanders working or having worked in lndonesia, for their savings and for slims destined for the support of persons

2&

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residing olltside Indonesia for whese alil1lcntation they are bound legally or morallYi

e. for Nctherlanders working or having worked in Indonesia C.q. their surviving relativcs, residing outside Indonesia, for pensions, leave allowances and ether similar periodical social payl11cnts inasfar as thcy arc not covcrcd by the funds rcfcrrcd to under a and c;

f. of interest and amortizatiOl~ on dcbenturc loans issued and private Joans ('"ondershandse leningen") contracted by lower public bodies or by olher corporale bodies sel up on high Hlilhority as far as payment of said interest and amortization are 110t or will Ilot be lawfully sllspended in connection with the finanCÎal posilion of public bodies anel ether corporale bodies referred 10.

2. Thc provisions of the first paragraph call be furthcr workcd out by the contracting parties for special cases or groups of cases.

3. Without prejudicc to the provisions of the first anel second paragraphs thc Republic of the United States of lndoncsia shall allow transfers to thc Netherlands and other cOllntries abroad in accordance with thc Articles of Agreement of the International Monetary Fund.

4. To enterprises operating partJy with lndoncsian capital in Jndonesia, the provisions rdcrrcd 10 in the preceding paragraphs will apply inasfar as actual eircumstances demand.

5. ]n respect of the transfer of money referred to in the first paragraph, tlle Repllblic of the United Stal es of ] ndonesia reserves the right to impase such restrictions as it deems Ilecessary in view of its foreign exchange position. These restrictions are subject 10

previous consultations between the Republic of thc United States of Indonesia and thc Netherlands whieh consultations wil! take place through a technical committee to be set lip at a later date 11llless the Govcrnlllent of the Republic of the United Statcs of Indonesia and of the Netherlands agree othcrwisc.

6. The transfer of interest and anlOrtization resulting from the liabilities assllmed by the Republic of the Uniteel States of lndonesia at the transfer of sovereignty is governed by the agreements made or to be made rcgarding these liabilities.

7. Thc provisions of thc preceding paragraphs are correspondingly applicable to the transfers from the Netherlands to Indonesia.

8. In case of expropriation, nationalization, etc. C.q. "naasting" thc Republic of the United Statcs of Indonesia allows transfer of the in·

demnity C.q. compensation ("'naastingsprijs") within the period of three years af ter the right to indemnity C.q. compensation ariscs. In case

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lhe Republic of the United States of lndonesia deems it impossibie to transfer within three years tbe indemnity C.q. compensatien, the Republic of the United States of lndonesia shall make this fact known be(ore taking steps teward expropriation, nationalizatioIl, etc.

An arbitratioll committee consisting of a representative of tbc Rcpu- blic of the United States of Indonesia. a representative of the rightful clairnant and a third member to be appointed in mutual consultation by both the two abovemeotioned representativcs sh311 give a binding dec is ion on the q ucstion of whether an exception can be made to said term of three years and to what extent.

111 case immediate transfer does oot take pi ace, the indemnity c.q.

compensation expressed in lndonesian currency shall be credited in the currency of the country from which the invested capital originates at th.e rate of exchange on the date the right arises.

ArticIe 19

1. As long as the Republic of tbe Unjted States of Jndonesia has liabilities toward the Netherlands inc1uding tbc gllarantees given by the Netherlands on bebalf of the Iiabilities of Indonesia, the Republic of the U nited States of Indonesia shall consult the Netherlands in advance. bath regarding intended alterations in the Coinage Act and lhe Java Bank Act prevailing at the time of transfer of sovereignty and regarding a new coinage act and circulation bank act to be enacted by thc Republic of the United States of Indonesia and possible alterations 10 be made therein.

Furthermore. lhe Republic of the United States of Jndonesia shall.

as long as the liabilities referred to exist, consuJt the Netherlands in general should the former consider taking important measures in the monetary alld financial field insofar as the interests o( the Nether- lands are concerned.

2. Thc liabilities and guarantees refcrred to in paragraph 1 are those Iiabilities c.q. guarantees which exist at the transfer of sovereignty.

3. Thc Rcpublic of the United States of lndonesia shall until the new circulation bank act becornes effective consult the Nether- lands regarding tbe appointment aod discharge of thc president and managing directors of tbe circulation bank aod regarding credits to be provided to the government by the circulation bank.

4. 10 order that the coosultation referred to in the first paragraph cao be implemented as smoothly as possiblc, the Netherlands Gavern- ment wiJl attach to the staf{ of the High Commissioner in Indoncsia.

an adviscr appointed by the NClherlands Government on matters in the field of monetary system alld circulation baoking.

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SECTION C

RELATIONS IN AND COOPERATION IN TRA DE POLICY

Article 20

J. Jn accordance with the principles of independence and sover- eignty. the Govcrnmcnts of the Netherlands and of the Rcpublic of the United Stales o[ Jndonesia shall bear the ultimatc responsibilily for their own trade poliey, both domestic and foreign.

2. 8ased on these principles, voluntary cooperation betwecil the two countries in their foreign trade relations cao be of mutual benc[it. This cooperation will be promoted by close contact and continuOlIS consultation betwecn the two countries rcgarding the various aspects of foreign trade. As far as it is considered profitable and beneficiailo both parties joint action shall be taken. Each of the two parties shall take into close account the economie interests for which the other is responsible.

3. It should be borne in mind that economicaUy, geographically and politically the Netherlands belong to the European sphere and lndonesia 10 the Asiao sphere. Historically close economie relations have exisled alld up la the present day exist between Europe and Asia in general aod betwecn tbe Netherlands aod Indonesia in particlllar. As a result of history, the Netherlands have considerable economie anel financial interests in Jndonesia. The Republic of the United States of Indonesia wiJl take due account of such interesIs.

Article 21

I. The foreign trade relations of the Netherlands with other countries shall be regulated anel supervised by the Netherlanels Governl11cnt or by its appropriate agencies, on its or their exclusive allthority.

The rareign trade relations of ] ndonesia with ether countries shalJ b~ regulated and supervised by the GOVCnll11CIlt of the Republic of the United Statcs of lndonesia or its appropriate ageneies on ils or their exclusive authority.

2. Wilh regard 10 the countries of Europe, the Netherlands and the Republic of the United Statcs of Jndonesia shall cooperate in the field of trade poliey. In the last quarter of 1950 ncw consultations shall be held in eonnection with the continuation of this eooperation and the way in which il shall be effectuated. both partics being free 10 determine their stand points anew.

31

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3. Each o[ the two parties retains the ultimate decision in such cooperation as weil as the ultimate decision on the disposal of its

OWll produets with respect to foreign trade. Each of the lwo parties determines what produels and what quantilies it desires 10 offer and the compensation it expects. This implies that in a specific case, anc of the parties cao take a small part only or even no part at all in a spcciflc trade agreement; in the latler case the other party will nevcrtheless be entitled ta conclude 3n agreement in view of its own interests. The non-participating party howevcr shall refrain from scparatcly concluding a trade agreement with the third country involved. Onee a joint trade agreement has been concIudcd, neither of the parties shall make alterations therein without previous con- sliltation witht the other.

4. In (he negotiations with third countries Ihe Nctherlands and the Republic of the Uniled States oi lndonesia, though forllling two separate delegations, act in coordination vis-à-vis the third country.

PreviolIs Illutual agreement shall be attained on a joint poliey.

5. The trade agreements wil! be signed by or on behalf of the Goveflllllent of the Netherlands, by or on bchalf of the Government of the Republic of the United Stat es of Jndonesia on the one hand.

<tnd by thc third country eoncerned on the ot her hand.

6. ft shall be prcviollsly decided who wil! act on behalf o[ the coordinated delegatians. The gUJding principle will be that the ehairmall be appointed from the delegation having the greater interest in thc discussions concerned.

7. Thc trade- and monetary agreements in force at the transfer of sovereignty shall, as far as these agreements concern Indonesia, be taken over and implemented by the Governml.!nt o[ the Republic of Ihe United Stat es of Indonesia. An enumeration of these agree- menls is contained in the auaehed list.

Article 22

I. With regard to trade intercourse bclwecn the Netherlands and Indonesia, bath eountries are prepared la eonsider a system of fllutual preferential treatment. Sueh a system will be 10 Ihe advan·

lage of bath parties aod shall not be in contravention with inter- national agreements.

2. Bolh parties act upon the principle that they shall not pay each alher higher prices than prevail elsewhere under like con- ditions for like produets.

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3. With regard to imports into bath countries, thc Republic of the United States of Indonesia as weil as the Nctherlands will rcs- peclively draw up lists of import requiremenls, 10 accordance wilh the needs of either country of consumer goods and of goods (or rehabilitation and rcconstructÎon and based on the foreign exchange aV3ilablc. With regard to exports from bath countries thc NeIher- lands and the Rcpublic of thc United Slates of lndonesia will reserve and alJocdte export goods to the other country.

4. Based on thc first and third paragraphs o( Ihis article thc two parties shall at reglliar times for a pcriod to be ag reed upon. coo- dude agreements for mlltual trade. Thc modus vivendi (now to he ca\\ed trade agreement) for the peri ad I October [9-19- 1 October 1950 is provisionally accepted by both parties. In thc lïrst quartcr of 1950 disclissions shall bc held between the twa parties as ta thc

implcll1~ntatjaJ1 and possiole alteralians of Ih is agreement.

5. Ouring thc period for which certain quotas prcvail, in prin- ciple no import-, export- or foreign exchange licenccs shall be rcfused. inasfar 3S thcy concern a transactiol1 agreed upon bel\veCn {:-tc buyer and Ihe seller, falling within thc scope of thc quoIas ag reed upon. If special cireumstances necessitatc clcviation from this principle. prcvious consultation w:th thc other party shall be held.

6. With regard 10 trade intc:·course anel m~l1eïS connectcd thercwith. the Nelherlancls and Indo1esia may call u!)on ('ach other for assistancc anel cooperation. Both p:nties agrc;;! that elch shall render $uc!1 assistancc if anel whcn requirej ancl considcrcd advi- sablc.

7. In case a1terations or amcndmcnts in the qllot<\s agrccd up::>n be deemed nccessary. both parties shall decidc 10 !his effect. in n111tllal consultation.

Artic1e 23

I. Thc rcglJlation existing between the Nctherhlnds allel Indo- nesia, according to which paymcnts between the two countries and paymcnts with a number of other cOllntries are effcctualed as l11uch as neccssary via a commercial account (called C-account ncw stylc) rcmains provisionally in force af ter the transfer of sovcrcignty.

2. At thc discussions to be held in thc first quarter of 1950 (see article 22, paragraph 4) between the two countries, consultation shall be held if and 10 what extent alterations are desired in lhe prevailing system.

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As far as possible alteralions ean be arranged betwecn the Nctherlands and the Republie of the United States of lndonesia, these shal! comc into effect as soon as possible; a~ far as they concern the relations with third countries, consultation shalt be held withiu the framework of the existing agreements.

Artiele 24

1. It is recommended that the Netherlands appoint a trade representation with the Netherlands High Commisioner in Indonesia to represent its Government, 10 maintain close contact with the economic agencies of ,the Governmentof the Republie of t'he United States of 1ndonesia and to render assistance if and when required or considered advisable. It is recommended that the Republic of the United States of Indonesia appoint a trade representation wilh the 1ndonesian High Commissioner in the Netherlands to represent i15 Government, to maintain close contact wlth lhe economie agencies of Ihe NetherJands Government and to render assistance if and wh en required or considered advisable.

2. The administration of the import- and exportquotas and the foreign exchange-licences pertaining thereto in the Netherlands is vested in the Netherlands Government and 111 the ageneies designated

10 this effect; the same administration in 1ndonesia is vested in Ihe Governmcnt of the Republic of the UDited States of Indonesia, and in the agencies designated to this effect.

SECTION D SETTLEMENT OF DEBTS

Artiele 25

The Republic o[ the United States of lndonesia shall assume the folJowing debts:

A. The following consolidated loans, calculated as of Decem- ber 31, 1949:

1. The Nelherlands-Indies Laan 1935 bearing interest at the rate of 3t

% ,

issued under the Netherlands-Indies Laan Act 1934 (Staars- blad no. 558) j'. the Netherlands-Indies Conversionlaan Act 1934 (SllIatsblad no. 425), as amended by Act of 1 November 1934 (Stants- blad no. 559). Amount outstanding as of 31 December 1949, f 36 650000.- . Remaining duration 21 years.

34

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2. The Netherlands-lndies Conversion-Ioan 1937 bearing inte- rest at the rale of 3

% ,

jssued under the Nelherlands-lndies Conver- sionloan Act 1934 (Staatsblad no. 245). Amount outstanding as o[

31 December 1949 [90000000.-. Remaining duration 18 years.

3. The Netherlands-tndies Loan 1937 A bearing interest at the rale of 3

%.

issued under the Netherlands-Jndies Conversionloan Act 1937 (Staatsblad no. 904). Amount oUlstanding as of 31 De- cember 1949 f 616250000.-. Remaining duration 25 years.

4. lndonesia's share of the Netherlands NationaJ Consolidated Oebt 1896 bearing interest at the rale of 3

%

(Act of 30 December 1895, Staatsblad no. 236). Anlount outstanding as oC 31 Deccmbcr 1949, f 3 300 000.- . Rcmaining duration 3 years.

5. The 3 % IndoneSian Loan 1962- 1964 (Agreement of 19 May/

8 June 1949) bcing Indonesia's share converted under paragraph 2, articJe 4 of the Agreement of 8-14 April 1938. in the 3- Jt % Netherlands Oovernment Laan 1938, which laan was converted under the Conversionlaan Act 1948 (Staatsblad no. I 115) and the Loan Act 1946 (Sftlalsblad no. G 143), amcnded by the Acts of 23 November 1946 (Staatsblad no. G 333) "nd of 12 February 1948 (Staatshlad no. 152). Amount outstanding as of 31 December 1949, f 79 912 000.- , which amount mllst be redeemed in full on 1 June 1964.

6. Loans contracted with "De Nedcrlandsche Bank" and "De Javasche Bank" bearing interest at the rale o[ 3

%

(Agreements of 14 and 16 January 1932, amcnded on 28 December 1932) against collatcral of Netherlands Treasury Bills set at the disposal of Indo-

ncsia under the Act of 25 July 1932 (Staatsblad no. 393), amt:nded by the Act of 15 March 1933 (Staatsblad 110. 99). Amount out- standing as of 31 December J949, total f 44 624 775.- . Remaining duration 13~ years.

B. The dcbts to third countries, calculatcd as of 31 December 1949:

l. Loan Export-Import Bank on behal[ of Indonesia within the framcwork of the E.e.A. aid (Agreement of 28 October 1948).

Amount outstanding as of 31 December 1949 U.S. $ 15000000.- . Remaining duration 24 years. Interest at the rale of 2+

% .

as from 30 I une 1952.

2. A !ine of credit granted by The United Statcs Government 10 the Netherlands lndies Government for the purchase of United States Surplus Property (Agreement of 28 May 1947). Amount out- standing as o[ 31 December 1949, U.S. $62550412.- . Remaining duration 3tt years. Interest at the rale of 2

%.

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3. Loan from Canada (Agrc;;orr.ent of 9 October 1945). Amount oublanding as of 31 December 1949. Can. S 15452 188.21. Re- maining duration 6 years. Interest at Ihe ralc of 2+

%.

4. Settlement between the Government of Australia and the Governmcnt of Indonesia (Agreement of 17 August 1949). AnlOunt olltstanding as of 31 December 1949, A. ! 8 500 0001-1- . Remaining duration 10 years. Frec of interest.

C. The following ciebts to the Kingdom of thc Netherlands, cal- culated as of 31 December 1949, up to the maximum amounts spccificd hereunder:

I. Imionesia's share in the swing providcd in the British Monetary Agreement, ad f 5 000000/- / - (153500000.- ).

2. A swing to the C-accou;1t of

r

-+0 000 000.- .

3_ The dcbit balancc on the HG. Hl-account of f 1:)0 000 000.- . 4. The debit balance on the Brctton Woods accounts, of f 95 000000.- (opposite thi3 is an aSSl;':t of the same amaunt as parti- cipation in Interfund allu Jnterbank).

D. All intcrnal debls of Indonesia al thc date ai transfer of sovcreignty.

Article 26

The Govcrnmcnt of the Republic of the Uniled Slales of Indonesia assumes responsibility for payment of both interest and amortization of lhe debts rcferred to in the prevÎous article and aCQllires as regards the debts under C the rights lInder the existing agreements.

Article 27

The rcmaining debts of the Body-Corporale of lnuoncsia to the K ingdom of the Nctherlands at the date of transfer of sovereignty shall be deemed cancclled af ter the debts of the Kingdom of the Netherlands to the Body-Corporate of Indoncsia at the same date have been offset, which involves a reduction or the extern al debt due to the Netherlands by the sum calclllated as o( 31 December 1949, or 2000000000 Netherlands guilders.

SECTION E FINAL PROVISrON

Article 28

The provisions of this agreement as far as the Kingdol1l of the Netherlands is concerned, shall have reference ta the Netherlands exclusively.

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LIST OF TRAD&. AND MONETARY AGREEMENTS IN WHICH INDONESIA PARTICIPATES

Counlries Trade Agreements I

Term

Monetary Agreements Term

I. The Argcntincs 2. BeJgium ... . 3. Bulgaria ... . .f. Denmark ... . 5. Eastern-Germany ...

6. Western-Germany.

7. U nited Kingdom ..

8. Finland ... . 9. France

10. H ungary 11. Israël 12. Italy 13. Yugo·Sla via 14. Norway 15. Austria

16. Poland ... .

17. Portugal ... . 18. Russia ... . 19. Spain ... . 20. Czcchoslovakia ... . 21. Sweden ... . 22. $witzerland ... . 23. Brazil ... . 24. Uruguay ... . 25. Turkcy ... . 26. Canada.

I· 4·'48-31·12·'52 I· 7·'49- 30· 6·'50 I· 1·'49- 31·12·'49 I· 7·'49 - 30· 6·'50 I· 7·'49-30· 6·'50 I· 9·'49- 31· 8·'50 I· 1·'49- 31·12·'49 I· 6·'49-31· 5·'50 I· 8·'49 - 30· 6·'50 I· 1·'49- 31·12·'49 I· 2·'49- 31· 1·'50 I· 4·'49- 31· 3·'50 6·'49-31·10·'49 ') I· 1·'48- 31·12·'49 4·12·'48 - 7· 2·'50 I· 1·'49- 31·12·'49

I· 7·'49 - 30· 6·'50 10· 6·'48 - 10· 6·'49 ')

I· 6·'49 - 31· 5·'50 10· 5·'49- I· 5·'50 I· 3·'49-28· 2·'50 1·10·'49- 30· 9·'50 15- 7-'48 - indefinite 6· 9·'49 - I· 7·'50

- - -

I· 4·'48 - 31·12·'52,

21-10-'43 - indefinite; termiDabie from 1-1-·.f9 on the lst January of each year.

I· 1·'49 - 31·12·'49 irnplying yearly renewal.

31· 1·'46 - indefinite.

I· 7·'49 - 30·6·'50.

I· 9·'49 - 31·12·'50 implying six monthly renewal.

7· 9·'45 - 7·9·"50.

1- 6-'49 - indefinite.

9- 4-'46 - indefinitc.

1- 1-'49 - 31-12-·.f9 with a onc-ycar rencwal subject 10 notiee.

I· 2·'49 - 31·1·'50.

30- 6-'48 - indefinite. 3)

1- 2-'48 - indefinite (notiee ean bc giwn bcfore 1-2-'51).

6-11-'45 - 1 year implying indefinite rcnewal.

3-12-'46 - inddinite.

1- 1-'49 - 31-12-'49 implying renewaJ.

1- 3-'46 - 1 year implying rcnewal.

10- 6-'.f8 - indefinite.

21-10-'46 - ÎDdefinite.

15-11-'46 - jodeEinite.

30·11· '45 - 31·12·'49, unless olherwise agreed.

24-10-'45 - for 3 years, thereaftcr irnplying yearly renewal.

1- 9-'48 - indefinite; provisional agreement.

12- 6·'.f7 - 1 year implying rencwal.

6- 9-'49 - 1-7-'50 subject to implying renewal.

28- 1.'48 - indefinite. 3)

I) Negotiations on a new treaty are now being held.

:) Pending future negotiations tbe commodity quota's continue indcfinitely.

I Term of

2 years 3 montb 3 mODth 2 month 3 monlb 6 rnoDth 3 month 3 month 3 rnonth I month 12 month 3 month the en each ~

3 rnoDth 3 month 6 month 2 rnonth 3 monlh 3 mODth 2 month 3 month 3 month

(36)

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