656D.006/3–1047: Telegram

The Acting Secretary of State to the Embassy in the Netherlands 34

confidential

125. Urtels 147, Mar 6,35 and 166, Mar 10.36 It seems possible from various oral observations made to you by FonMin and Director Political Affairs that FonOff may not have been properly informed by Neth Emb Wash and may in good faith believe that Isbrandtsen reed no assurances from Emb or NEI authorities in regard his transaction with Perseroan Bank. There may be some danger therefore that FonOff may base its eventual reply on incorrect appreciation of facts.

Following are facts re Neth Emb assurances:

James W. Ryan, representing Isbrandtsen Co, on or about Jan 21 asked Dept’s advice concerning proposed commercial transaction his Co and Perseroan Bank involving lifting cargo rubber, sugar, other commodities, Cheribon. Ryan advised at that time that owing uncertainty [Page 906] political conditions and owing Dept’s info that NEI anthorities opposed purchase commodities Indonesian ports on grounds uncertainty title, Dept considered proposed transaction premature, financially risky, and politically inexpedient.

On Jan 27 meeting was called in Dept to consider question with Ryan present. Dept’s views previously expressed to Ryan were reiterated. Dept’s approval of transaction, sought by Ryan, was not granted. Ryan then stated that in informal conversations with Van Kleffens,37 and Loudon,38 and Janssen, he was given to understand that Neth Govt had no objection to proposed transaction. On basis these statements, Dept agreed reconsider question and send Ryan telegraphic reply New York.

On same day (Jan 27) E. C. Zimmerman, Neth Indies Trade Commissioner, requested appointment to discuss matter and, in presence two Dept officials, stated that Neth Govt not only did not oppose proposed transaction, but favored it as implementation Linggadjati Agreement. Zimmerman suggested Dept interpose no objections to proposed transaction. When asked whether he represented Neth Emb in this matter, Zimmerman replied that he did. He reiterated to Dept assurances previously given Ryan, namely, that proposed transaction would not violate any existing NEI trade regulations.

After Zimmerman’s departure, Dept officer telephoned Neth Emb to make sure that Zimmerman spoke with authority Amb. Dept officer was advised by a First Secretary that Zimmerman had previously discussed whole matter thoroughly with Loudon and that he was presumably authorized speak for Emb on question.

Accordingly, on Jan 28 Dept advised Isbrandtsen as reported Deptel 57 Jan 31.39

Dept desires you, without awaiting FonOff’s written reply Deptel 114 Mar 8, inform Boetzelaer or Vredenburch orally of above, pointing out that, in view Emb assurances to Isbrandtsen and in view NEI Govt’s intention ship cargo to USA in Amer vessel (Deptel 122 Mar 1239), Dept considers discrimination against Isbrandtsen in favor member Batavia Conference would be unjust, unfair & inadvisable.

For your info, National Maritime Union, in tel to Dept, has formally protested alleged actions NEI authorities against members Behrman’s crew. Tel intimates possible reprisal action NMU against Dutch shipping.

Acheson
  1. Repeated to Batavia as No. 65.
  2. Not printed.
  3. Not printed; it reported oral observations in reply to the American note, to which a written reply was promised, and concluded that the apparent purpose of the Dutch authorities in the Indies was “to force Indonesian signature Linggadjati Agreement as price of aid to economic rehabilitation Indonesian controlled areas”. (656D.006/3–1047)
  4. Dr. Eelco N. Van Kleffens, former Netherlands Minister for Foreign Affairs.
  5. Dr. Alexander Loudon, Netherlands Ambassador to the United States.
  6. Not printed.
  7. Not printed.