501.BC Indonesia/9–748: Telegram
The Consul General at Batavia (Livengood) to the Secretary of State 1
us urgent
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761. Gocus 367. By Gocus 3662 USDel transmits its draft political agreement wherein it has taken cognizance Netherlands draft act for interim period and endeavored preserve as much of Netherlands draft political agreement as possible. US-Aus working paper as revised by Department drawn on importantly. In addition USDel draft includes our experience and observations in light developments since leaving Washington.
We have not opposed in past and will not block in future any move made by either party to advance its own plan of settlement. We have avoided letting it be known we expected to put forward a USDel draft plan since this would prejudice the chances of acceptance of any plan put forward by either party and since there has been some reason to believe NethDel wished to put forward a Netherlands draft plan whatever its chances of acceptance. Having now seen Netherlands draft plan (Gocus 364)3 we believe Republic and AusDel would react so strongly to it that chances of later acceptance of USDel draft plan would be seriously prejudiced since our draft incorporates some Netherlands ideas.
USDel urges Department consider Netherlands draft and USDel draft in light foregoing. If Department can persuade Netherlands [Page 323] Government not to present Netherlands draft at all then we will discuss USDel informally with both parties as soon as we have received Department’s comments on USDel draft. If NethDel should present Netherlands draft, USDel will await Republican reaction thereto before informally presenting USDel draft (including any amendments Department may wish to make) to parties and to GOC.
It will not be possible initially to discuss draft informally with both parties simultaneously since parties now geographically separated. Presentation. USDel draft informally to NethDel and to Republic would be as close together as possible and reference then made to GOC without losing much time to consider parties’ initial reactions.
USDel hopes Department may provide by machine code to Consulate General Batavia its comments on USDel draft by night Friday, September 10. Scott going to Batavia 6th to file Gocus 366 containing USDel draft, pick up any new instructions from Department or additional material from NethDel and return Kaliurang 8th. Cochran and Scott will both go Batavia 10th and await Department’s reply. They would then present USDel draft agreement informally to Neth Del. Present idea would then be return soonest Jogja and show draft informally to Republic.
USDel’s considered opinion is that action should be quick as possible since we are convinced situation will deteriorate further unless overall political agreement reached. Developments past week strengthened USDel’s conviction that Communists have been using nationalism as cloak in Republic and gaining strength as time passes, as no agreement consummated, as Soviet infiltration becomes more active, as Communist character of Sjarifuddin confirmed by fusion leftist political parties and as Communist-led youth groups get out of hand.
In addition AusDel at Kaliurang renewed its recommendation that GOC make early report to SC on recent developments. Frustrated in this today, we believe Critchley is encouraging Republic to make its own report direct SC with resultant obligation on GOC and NethDel to comment thereon.
Finally, in discussion with Cochran September 3 Sukarno and Hatta led him believe they feel seriousness their position sufficiently to tempt them agree to best overall offer USDel or GOC can get for them. They appear to believe they can still muster enough political support for acceptance by Republic of just plan. In conversation with Hatta September 5 as well as conversation with Pringgo Digdo same day, USDel gained impression present Republican leaders most anxious have early submission overall settlement and will not quibble over details.
USDel believes its draft offers Netherlands Government best assurances of law and order and opportunity for maintenance thereof as [Page 324] well as extension most beneficial relationship with Indonesia that can be negotiated. When Cochran solicited at Hague any views on settlement that might be provided it was understood these would primarily set forth Netherlands desiderata and that counterproposals in consideration Republic interests and any other helpful ideas on question would be welcomed by Hague in turn. Consequently Cochran thinks Netherlands position subject to much modification in spite Netherlands draft prior approval by Cabinet.
USDel would appreciate Department’s approaching Netherlands Government in support USDel draft if Department finds it acceptable in light foregoing observations. Department might stress that USDel feels that no chance of any plan more favorable to Netherlands being accepted either by RepubDel or AusDel and that further delay in reaching settlement or leaving Republic out of federation plans would lead to more dangerous situation, spread of communism, costly chaos and fighting. As matters stand, economic situation of Republic in present boundaries and circumstances is weak; economic plans of Republican leaders are visionary; economic future of Republic as permanently partitioned unit would not be promising. Cochran would not recommend partitioned Republic as loan risk and realizes Netherlands credit must necessarily suffer while Indonesian question remains unsolved. Foreign loans which would be needed by both parties to union statute could be justified only if peaceful settlement is achieved. It is presumed Eugene Black has given Department benefit his views in this specialized field. This connection it would help much if USDel could tell Republic that we would favor financial help in which all states of peaceful federation would share according to their needs and dependent upon their capacity utilize shares of loans efficiently and as sound borrowers.
To both parties and also to GOC we should like to be able to say that USDel draft has Department’s support. We believe this to be essential to parties favorable consideration of draft.
Livengood concurs. Signed Cochran.
- Repeated in telegram 427, September 9, 11 a. m., to The Hague.↩
- Telegrams 756, September 6, 7 p. m.; 757, September 6, 8 p. m.; 758, September 6; 759, September 6; 760, September 6, 11 p. m., none printed. These were received between September 6, 5:15 p. m., and September 7, 3:09 p. m.↩
- Telegram 742, September 1, not printed, but see footnote 1, p. 313.↩