THE INDONESIAN CAPITAL CITY DJAKARTA, LIKE OTHER CITIES IN THE REPUBLIC, WAS IN FESTIVE MOOD FOR THE INDEPENDENCE ANNIVERSARY, AUGUST 17.

NATIONAL FLAGS FLUTTERED FROM THE STREETS AND HOUSES, THE NATIONAL "GARUDA" EMBLEM REMINDED PEOPLE OF THE INDONESIAN MOTTO "UNITY IN DIVERSITY", AND THERE WERE A NUMBER OF ANTI-DUTCH SLOGANS. "KICK THE DUTCH IMPERIALISTS OUT OF WEST IRIAN" SAID ONE SLOGAN EMPHASIZING INDONESIA'S CLAIM TO WEST IRIAN (WEST NEW GUINEA).

THE HIGHLIGHT OF THE CELEBRATION IN DJAKARTA WAS THE MASS RALLY AT THE MERDEKA (FREEDOM) PALACE.

PRESIDENT SUKARNO'S SPEECH AT THE RALLY WAS MARKED BY MODERATION.

SPEAKING IN DUTCH, THE PRESENT APPEALED TO HOLLAND TO TRANSFER WEST IRIAN TO INDONESIA VOLUNTARILY AND PEACEFULLY. HE SAID SOVEREIGNTY OVER WEST IRIAN WAS ALREADY LEGALLY INDONESIA'S. "FROM NOW ON WE WILL STRUGGLE FOR THE TRANSFER OF ADMINISTRATION IN WEST IRIAN TO THE REPUBLIC OF INDONESIA," HE ADDED.

PRESIDENT SUKARNO SAID INDONESIANS WERE EAGERLY WAITING FOR THE DAY WHEN THEIR RED-AND-WHITE NATIONAL FLAG WOULD FLY OVER WEST IRIAN - "AND GOD WILLING, THAT DAY WILL BE IN THE COMING YEAR."
THE INDONESIAN LEADER ADMITTED THAT PRICES OF ESSENTIAL COMMODITIES HAD "INCREASED CONSIDERABLY." HE SAID PEOPLE WERE QUEUING FOR RICE, SUGAR AND KEROSENE.

"SHALL WE LEADERS ASK THE PEOPLE TO BE PATIENT TILL DOOMSDAY? PLEASE RELEASE THE PEOPLE ARE PATIENT, BUT THE STOMACH CANNOT WAIT TOO LONG," HE SAID.

ABOUT 15,000 PEOPLE MARCHED PAST THE PRESIDENT, AT THE END OF THE RALLY.

PRESENT AT THE RALLY WERE THE VISITING HUNGARIAN PREMIER, MR. FERENC MUNICH; CHAIRMAN OF THE COMMUNIST CHINESE PEOPLES CONGRESS, MR. KUO MO JO, AND POLICE CHIEFS FROM AUSTRIA AND JAPAN. BUT THE FOREIGN OFFICE PROHIBITED TAKING PICTURES OF THE VISITING DIGNITARIES.

RESTRICTIONS FOR CAMERAMEN WERE STRICTER THAN USUAL AND NO CAMERAMAN WAS ALLOWED WITHIN 50 FEET OF THE PRESIDENT AND THE VIP GUESTS ON THE MAIN PLATFORM.