501.BC Indonesia/12–1247: Telegram

The Acting Secretary of State to the Consulate General at Batavia

secret

373. Urtels 531 and 532 Dec 12.77 Dept unable at present comply Indo request US Govt lend its offices to secure American economic adviser since Dept believes Dutch would regard such action as compromising neutrality US during negotiations GOC. At same time Dept desires maintain Republic confidence in US and would comply Republic request if Dutch-Indo differences composed.

Dept suggests you convey to Tamzil pleasure US Govt at this evidence Republic confidence in US, recalling US Govt’s interest in rehabilitation Indo economy and readiness to supply material assistance and technical advice for this purpose when Dutch-Indo political settlement achieved; and emphasizing desire US Govt avoid any action which might derogate neutral position US as member GOC.

For your info Dept believes Republic reps US could not obtain in present employment circumstances here a suitable economic adviser from private business in sufficient time to contribute to alleviation conditions described Tamzil’s memo while negotiations in progress.

Dept suggests in conveying foregoing you impress Tamzil urgent importance recovery Indonesia not only to Indonesians but to world economy, fact that such recovery depends upon settlement dispute and necessity Republic’s recognition its obligation to make promptly its full contribution to amicable settlement dispute.78

Assume you will apprise Graham foregoing.

Lovett
  1. Neither printed; they reported the Indonesian desire to obtain from U.S. private business circles an economic expert to serve in advisory capacity in regard to economic policy (856D.50A/12–1247).
  2. Telegram 570, December 24, 1 p.m., from Batavia, reported that the reply was given Tamzil on December 23 and that he understood the matter (501.BC Indonesia/12–2447).