Indonesia: The Sukarno Method

Indonesia's Sukarno likes to observe the forms of international law the better to violate them. Since expropriation of foreign property is very bad form indeed, Sukarno has worked out his own method of laying hands on other people's valuable plant and equipment.

First the Communist workers in foreign-owned plants rally and riot, demanding that the management be thrown out and the factory given to the workers. Then Sukarno steps in to take over the management on behalf of the Indonesian government to "protect" the plants and estates from the angry workers. Formal nationalization is apt to follow. The Dutch, Belgians and British have all been victims of the Sukarno Method in recent years.

Last week it was the Americans' turn: Indonesia announced it was taking over the management of the $80 million rubber plantations in North Sumatra owned by the U.S. Rubber Co. and Goodyear Tire & Rubber Co. Sukarno's spokesman insisted that U.S. ownership rights would of course continue to be "recognized." Of course.