1939: Netherlands Indies

Netherlands Indies, an island-chain of the East Indies, are situated in the Indian Ocean, stretching across the equator, between Southeastern Asia and Northwestern Australia from 6° N. lat. to 11° S. lat. and from 95° to approximately 141° E. long. The islands have a total area of 735,268 sq. mi. The total estimated population in 1938 was 67,400,000 inhabitants, composed largely of natives, Orientals from Asia, and a minority of Europeans. The capital of the colony is Batavia, located on the Island of Java.

Sugar, coffee, tea, maize, rice, corn, tobacco, and cassava were the chief crops. Spices and medicinal herbs are exported, principally cinchona, pepper, and condiments. Groundnuts, agaves, palm oil, cacao, and sweet potatoes are also grown. Livestock-raising is an important occupation. The principal minerals are tin, coal, oil, natural gas, diamonds, gold, and silver. The tropic forests provide timber, rubber, and rattan. Over 16,457,000 acres were harvested by natives in Java and Madura during 1937. Total exports in 1937 were valued at 1,009,844,000 guilders; total imports, chiefly of manufactured goods and machinery, at 516,292,000.

The colony is administered by a governor-general, assisted by a council of 5 members, and a Volksraad or general assembly elected in part by the voters. Total governmental revenues in 1939 were estimated at about 591,000,000 florins; expenditures at 634,700,000 florins. The florin averaged 55 cents. In 1940 a deficit of 40,000,000 florins is expected, owing to defense expenditures.

In 1939 the Government of The Netherlands began to make elaborate plans for the defenses of the Indies, owing to the agitation during the months of February, March and April over a readjustment of the colonial situation more favorable to Germany and Italy. The most serious threat to the safety of the Netherlands Indies came in February, however, when Japan seized the island of Hainan, bringing her influence into the sphere of French Indo-China and much nearer the rich oil deposits of the Dutch Indian islands. In April the return of the United States fleet to the Pacific was seen as a protection against any serious Japanese aggression and the tension was relieved. After the outbreak of the War in Europe, the extremist army party in Japan advised steps which would eventually bring Netherlands Indies under Japanese control, should the Netherlands be drawn into the European conflict.