Office of the Historian

501.BC Indonesia/5–2848: Telegram

The Acting Secretary of State to the Consulate General at Batavia1

secret
Washington, May 28, 1948—7 p. m.

230. Dept considers early restoration operations oilfields now under Republic control as essential to recovery Far East and approves USDel approach in emphasizing US concern that NEI oil potential be fully utilized to help solve world oil shortage particularly for Far East needs.

[Page 193]

Re negotiations Dept suggests importance temporary compromise reopen fields immediately without prejudice to and pending settlement disputed points by negotiation.

Dept presumes Republic in position to enforce claim military control fields and priority right to petroleum for domestic civil and military needs. Negotiations regarding share exchange proceeds Djambi production and Pakanbaroe hectare tax should not preclude temporary settlement on basis suggested. USDel authorized endeavor secure acceptance reasonable agreement since increased NEI output vitally important.

Lovett
  1. This telegram was in response to telegram 419, May 21, 3 p. m., from Batavia, not printed.↩