Friday, May. 04, 1962
Pay Now, Fly Later
Indonesia's rabble-rousing, globe-trotting President Sukarno gets a kick out of meeting other heads of state--it boosts his prestige. But last week Sukarno summoned Britain's ambassador to Djakarta, regretfully called off a trip to London (scheduled for next week) to meet Queen Elizabeth. The British managed to control their disappointment.
Official reason for the cancellation was "rising tension" over West New Guinea (West Irian to the Indonesians), which Sukarno keeps threatening to "liberate" from Dutch rule. Actually, while Sukarno kept ranting, he managed quietly to postpone his deadline. Before, he had sounded as if an invasion of New Guinea were imminent, but now he shouted: "Whatever happens, before the sun rises on Jan. 1, 1963, West Irian will be ours. If the Dutch oppose peaceful means, we shall liberate with force." Before Jan. 1, 1963, Sukarno wall have plenty to preoccupy him at home.
Headlong military mobilization of Indonesia's slim resources has thrown the economy into chaos. The country's hard currency and gold reserves, estimated at $300 million, are exhausted. The black-market rate for U.S. dollars has climbed 100% in eight months. The price for once-plentiful rice has trebled in three months. In wide areas, famine is raging, and troop rations have been slashed to rush food to the people. Thousands of people were suffering from malnutrition, and near Djakarta 70 were reported dead of starvation.
Last week Sukarno installed a military-style "Economic Operations Staff" to deal with the situation. The governor of the National Bank became an army major general; the Chief Minister became a full general; the Foreign Affairs Minister became an air force vice marshal; the Distribution Minister became a rear admiral. The costume change will probably inspire a flurry of salutes at staff meetings, but as long as Sukarno keeps Indonesia on a war footing, the switch will be of little help.
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