107. Telegram From the Embassy in Indonesia to the Department of State1

450. My telegram 430.2 To any American who has lived through the two years of the Ali government with its usually correct but always cool attitude towards United States and US policy, its catering to Indonesian left wing elements and especially in past few months to Communist China, and its subservience to the demands of a highly emotional nationalism, the alterations of last forty-eight hours in the political climate are little short of breathtaking. A few illustrations are:

1.
At first Cabinet meeting adoption definite attitude towards solution October 17 affair and acceptance resignation Bambang Utoyo will not only gain positive support of army but will impress country with Cabinet’s vigor.
2.
Promises of economy and efficiency in government administration are already beginning be fulfilled; Sumitro tells me he has already blocked expenditures by four unnamed ministries pending thorough audit their apparently non-existent accounts, number of ministries including Finance have issued stringent orders observance official working hours (previously a joke) with penalty dismissal high officials, all large Cabinet official cars to be returned to government pool for re-sale immediately after Independence Day celebrations and to be replaced by small, second hand cars to extent available. Sumitro also tells me it is his firm policy, backed by Prime Minister, to restore full authority of Auditor General, corresponding in powers and duties to US Comptroller General, who under Ali government because [became?] political creature rather than responsible autonomous official reporting only to Parliament.
3.
Anak Agung confirmed to me “as For Minister” what he told me “as director United States Division Foreign Office” his policy and that of Prime Minister to build warm relations with US without departing from independence foreign policy.
4.
Anak Agung also told me he would personally handle all American matters and asked “unofficially” whether in next few [Page 182] weeks I would be prepared resume discussions of a “treaty of friendship, commerce and navigation”.3 He smilingly repeated word “friendship”.
5.
At airport reception yesterday for Egyptian Vice Prime Minister, Prime Minister insisted my joining and remaining with group consisting of himself, Foreign Minister and Acting C/S Lubis.
6.
At state banquet last night, contrary my past experiences, entire Cabinet made a point of singling me out for warm and friendly attentions, leaving Red Chinese Ambassador noticeably outside circle. At Foreign Office reception this morning, Labor Minister remarked “under Ali Government Indo China [Indonesia] was for sale; now China will have to pay a high price for every concession”.
7.
I was only Chief of Mission called out by President for private conversation which lasted several minutes.

While foregoing incidents, great and small, are, I believe, an indication of new Cabinet’s general attitude, we must, of course, also bear in mind that implementation of independent foreign policy slanted towards the West will be extremely difficult and perhaps slow, and will require very delicate handling by US. I also am quite aware that we are seeing the first burst of exuberance of a new government determined as far as possible to break with policies of its predecessor.

Cumming
  1. Source: Department of State, Central Files, 756D.13/8–1655. Secret.
  2. Telegram 430 from Djakarta, August 15, contained Cumming’s preliminary comments on the new cabinet, which he considered “far more conservative and responsible” than its predecessor. (Ibid., 756D.13/8–1555)
  3. The United States proposed such a treaty in March 1954, but the Ali government had expressed a preference for a treaty that omitted the word “friendship” from the title and preamble. Telegram 1169 from Djakarta, April 10, 1954, reported that Abu Hanifah told Cumming that the omission was intended “to anticipate objections from anti-American groups in Parliament”. (Ibid., 611.56D4/4–1054; also telegrams 1073 and 1157 from Djakarta, March 24 and April 9, 1954; Ibid., 800.05156D/3–2454 and 611.56D4/4–954, respectively) A U.S. draft treaty, which substituted the word “amity” for “friendship”, was given to the Indonesian Foreign Ministry on September 8, 1954. (Despatch 125, September 10, 1954; Ibid., 611.56D4/9–1054)