APPROVED FOR RflEASE
Suggest Uefcrnent Ql Talks on Western Aid to iddonaa la
id discussions with US officials in Tba Haguea program of Western economic aid toigh official of the Dutch Ministry of Finance indicated that he did not know whether tbe Netherlands would
The Dutch official pointed out that Indonesia had stopped payments on external debts to tbe Motherlandsnd had subsequently nationalised Dutch properties without He said that the Netherlands Government hoped that, esult of the West New Guinea settlement, attitude would change and that it would expressto discuss the matter of dobt payments and compensation for nationalized properties. Until Djakarta did so, he noted, the Netherlands felt lt would be undesirable even to holddiscussionsgovernment aid to Indonesia.
The Dutch Government appears to bearder line on this question than are private business and commercialid the Netherlands, some of whom are prepared to forego compensation for capital seized by Indonesia. They insist, however, that tbeof diplomatic relationsrerequisite to tho re-establishment of economicsince Indonesia took the Initiative in breaklDg the former In
KIM Royal Dutch Airlines Is one of the commercialmost active in prossur-lng tbe government to restore relations. Oneputy director of the airline left for Djakarta to discuss "civil aviation."
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