43 and 44. Mr. Edward M. Taylorasked the Secretary of State for Foreign Affairs (1) what reply Her Majesty's Ambassador in Djakarta has received to the note delivered by him to the Indonesian Government on 25th February, in which that Government's attention was directed to the fact that no reply had been received to the note delivered on 1st December, 1964, regarding the Indonesian Government Decree of 26th November, 1964;
(2) whether British-owned commercial interests in Indonesia have been placed under complete Indonesian management and control; and what steps Her Majesty's Government have taken to ensure that adequate compensation is paid in accordance with international law.
§ Mr. PadleyThere has been no reply from the Indonesian Government to Her Majesty's Ambassador's representations. 139W The present position is that not only British, but virtually all foreign-owned property in Indonesia has been placed under Indonesian control and management. If, as seems probable, this Indonesian action amounts in effect to expropriation, we shall expect the Indonesian Government to honour their obligations in international law to provide prompt, adequate and effective compensation.
British firms affected are in close touch with the Foreign Office and are at present communicating individually with the Indonesian authorities. The outcome of their approaches and our continuing inquiries will enable us to decide soon whether expropriation has taken place.