Even if they did restore Netherlands, officially, would it be considered independent enough the British woulld allow the East Indies to be transferred? Would the Dutch in DEI accept that Amersterdam rule?
Well, at least by my understanding, the fact that the Dutch government decided to abandon the country was instrumental in keeping the colony in the war; if such a peace was signed, I think the situtation would be mixed. In Batavia, opinions would probably be divided between those who would argue that the colonial authorities would have to live with the new status quo in order to prevent any further erosion of their power in the area and those who would consider the treaty unacceptable and would try perhaps to break the East Indies away from the new government's control.
Instrumental in this scenario are two things:
1. Do the British keep supporting any governments-in-exiles or do they expel them for a peace with Germany?
2. Does Queen Wilhelmina accept the new arrangements and return to the Netherlands?
The Dutch in the East Indies were fiercely Orangist and actually tried to get Wilhelmina to move from London to Batavia, which she refused. I disagree with
@Tanaka did nothing wrong about the divide in the colony though. The biggest fear in dealing with the new situation was that the colony would be forced to be
Indochina'd if it would be aligned with Germany (and thus/or Japan).
Personally I think this part of the discussion is moot. The UK is never going to accept peace if it means that the Germans can keep control over the Benelux, let alone France. The Germans would be foolish to demand that though, as Western Europe has a very good chance of turning Fascist/Fascistoid and German-aligned if the German troops leave. In which case the colonials would certainly follow.
