501.BC Indonesia/5–2148: Telegram

The Acting Secretary of State to the Consulate General at Batavia

secret

224. Usgoc 101. Dept favorably impressed analysis situation and proposed program set forth Gocus 275, May 21 and commends your initiative and resourcefulness. It is evident that 7-point program to achieve provisional Federal Govt can be put into effect only if agreement has been reached between parties on 4 issues identified in 3rd unnumbered para Gocus 275. Dept agrees with you that first 3 these issues should be resolved in general as you have suggested. Dept does not have at its disposal sufficient info concerning union court plan to request Dutch to drop proposal as suggested by you. Accordingly, pls telegraph immediately fullest possible details of court issue as presented by both sides. In this connection, it would be helpful to have your views regarding degree of protection to US interests which Dutch [Page 187] proposal for union court would provide and possibility development of effective alternative device for protection of American interests other than arrangement such as US-Philippine Economic Agreement.

It is not clear whether “political agreement” referred to in numbered para 1 is to include specific agreements on steps to be taken to carry out program envisaged in remainder numbered paras. Dept’s tentative view is that agreement on substantive details of procedure set forth in paras 1 to 7 together with dates on which events are to transpire should be included in the body of “political agreement”.

Numbered para 3 implies that “political agreement” will not make express provision for delineation of states, but that this issue would still be subject to negotiation after signing of “political agreement”. Pls clarify.

Pending info requested foregoing Dept will postpone discussions program recommended by you with Neth Emb Wash.

Sent Batavia as 224; rptd The Hague as 213.

Lovett