In practice, government control concerns agriculture as well as industry. Paddy rice which is to be milled is purchased by the government which contracts with private firms to have it milled at a price set by the government. The rice is then sold at the govern? ment price.(16> In addition, the sugar industry has been placed under state control. Apparently there has been some deviation from the policy of state con? trol rather than ownership. It was announced on December 10, 1946 that the damaged and run-down railroad system, now operating on only forty percent of prewar trackage, would be nationalized. Full implementation of Article 33 has undoubtedly been limited by the desire not to alienate Western nations having important investments in Indonesia. For the leaders of the Republic clearly realize that credits and technical help from these countries, the Netherlands included, are absolutely necessary.<17) The Government of the Indonesian Republic has officially declared: