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Latest result of the Calcutta conference has been Moscow-trained Muso Suparto's proclamation of an Indonesian "People's Republic" and his seizure of Madiun, Java's third city. Production of Indonesia's rubber, tin and oil and their distribution throughout the world was the basis of Holland's prewar prosperity. If the Communists succeed and choke off revival of this trade, it will take more than Marshall Plan aid to keep The Netherlands afloat...
...spice trade. Hoorn had been made useless when the North Sea Canal was cut to Amsterdam in 1876. From the town square, an imposing statue looks down at the idle harbor. It is Jan Pieterszoon Coen, Holland's great governor of the East Indies, who had pushed into Java to found an empire. Graven on the base of the monument, for Dutchmen to read, is his terse motto: "Desespereert niet" (Do not despair...
Stalling? Republican leaders suspected that the Dutch were stalling to avoid any kind of settlement. In their "police action" last summer, Dutch troops seized the biggest towns and richest lands of Java, deprived the republic of rule over two-thirds of Java, parts of Sumatra and all of Madura. Meanwhile the Dutch have maintained a naval blockade of the Republican area. Republican leaders suspected a Dutch scheme to whittle down the republic's size and staying power until they could impose their rule throughout Indonesia, through Dutch-controlled governments. One measure of their good faith would be the speed...
...correspondent in Java had cabled TIME, offering a future story on truce negotiations, outlining the terms of the still confidential U.S.-Australian proposal. TIME did not print the information. By complaining about its "publication" in TIME, the Dutch not only put every other correspondent in Indonesia on the track of the story-they admitted that somebody was snooping into correspondents' outgoing cablegrams, a violation of confidential communications which many a government practices, but which no polite government likes to admit...
Like Tiltman, William Costello of CBS had sent critical reports on General MacArthur. Costello, who planned a trip to Java, got the same notice as Tiltman. McGraw-Hill's Alpheus Jessup wanted to visit Malaya and Burma. Ex-General Frayne Baker, MacArthur's P.R.O., ruled Jessup would have to take his wife, who is expecting a child in a month, with...