Foreign Relations of the United States, 1955–1957, Southeast Asia, Volume XXII

182. Telegram From the Department of State to the Embassy in Indonesia¹

Washington, October 12, 1956—6:55 p.m.

585. Your 667² and 766.³ In view apparent Indonesian Government decision look to US for assistance in army modernization, believe first step in orderly approach should be establishment Indonesian eligibility military purchases. Even with clear understanding no commitments either side, detailed “technical explorations” could create undesirable premature expectations should, despite Ali’s optimism on assurances, difficulties develop in establishing eligibility.

Recommend therefore you propose to Ali following step by step procedure.

1) Indonesian Government provide US with assurances cited Deptel 15⁴ to establish Indonesian eligibility for purchase military equipment, materials and services.

2) Types, amounts military equipment desired by Indonesia be determined without commitment either side.

3) Questions of availability of equipment payment credit terms and an other matters relating to supply of goods and services then be raised in government to government discussions.

Re procurement American type equipment from Japan procedure Indonesia should follow is to approach Japanese suppliers. Japanese will seek US concurrence through US agencies Japan.

Begin FYI only. As outlined in letter to you from Howard Parsons August 17 US agencies in Japan in turn would request State Department approval. Approval appears likely but in view Indonesian preference obtain equipment from US, presume PM has purchase from Japan in mind only as possible fall-back arrangement if direct US-Indonesian arrangements not feasible. End FYI only.⁵

Hoover

1. Source: Department of State, Central Files, 756D.5–MSP/9–2656. Secret; Limit Distribution. Drafted in SPA; cleared with U/MSA, L, NA, MC,ICA, and OSD; and approved in FE.
2. Document 178.
3. Telegram 766 from Djakarta, September 26, reported that Ali told Cumming on September 24 that he was anxious to proceed with discussion of possible U.S. arms supply to Indonesia as quickly as possible. (Department of State, Central Files, 756D.5–MSP/9–2656)
4. Document 164.
5. Cumming reported in telegram 960 from Djakarta, October 20, that he had given Ali orally the substance of this telegram except for the final paragraph. (Department of State, Central Files, 756D.5–MSP/10–2056) Telegram 1064 from Djakarta, November 1, reported that Ali had told Cumming that instructions were being sent to Ambassador Moekarto to give the required assurances. (Ibid., 756D.5–MSP/11–156) Telegram 1484 from Djakarta, December 21, reported that in a conversation that morning, Ali had told Cumming that Moekarto had delayed executing his instructions, but would be instructed again to do so without further delay. Ali also asked Cumming to record that he had that day given him the required assurances orally. (Ibid., 756D.56/12–2156)