501.BC Indonesia/1–2948
Memorandum of Conversation, by the Assistant Secretary of State for Political Affairs (Armour)1
| Participants: | Mr. Norman J. O. Makin, Australian Ambassador |
| Mr. Norman Armour, Assistant Secretary of State | |
| Mr. Alfred Stirling, Counselor, Australian Embassy | |
| Mr. Arthur Richards,2 BC | |
| Mr. William S. B. Lacy,3 SEA |
The Australian Ambassador called at his request. He said that his Government had requested him to ask the United States to use its influence to the end that the Good Offices Committee continue its operations in Indonesia during the “interim period”, during which time the final agreement between the Netherlands and the Indonesian Republic would be reached. I replied that it was my understanding that the political principles accepted by both parties as an agreed basis of a final political settlement provided that the Good Offices Committee should so continue.
Mr. Makin continued to say that his Government had requested that he ask the United States Government to use its influence to the end that the Indonesian Republic be placed in control of its own foreign trade, of foreign exchange resulting from such trade, and of its internal finances. Mr. Makin said that it was the view of his Government that the Indonesian Republic should enjoy the fruits of its own labors and that foreign exchange arising from the sale of commodities which they produced should be available to them and not to the Dutch, and that they should be permitted to use such foreign exchange in any way they felt desirable. I asked Mr. Makin if his remarks were directed to the position of the Indonesian Republic alone or whether his Government had in mind the United States of Indonesia of which the Republic, under the agreement, was one state. At this point Mr. Makin read his telegram of instructions which left no doubt that his Government had reference to the Indonesian Republic and not to the United States of Indonesia.
It was pointed out to Mr. Makin that the territory presently controlled by the Indonesian Republic was in fact a deficient area in respect of every exportable commodity with the exception of sugar, and that other products ordinarily moving in foreign trade were produced in territories now controlled by the Netherlands. Mr. Makin replied that he considered this situation should encourage the Dutch to be even more lenient with the Indonesian Republic.
[Page 86]I asked the Australian Ambassador to provide the Department with a note embodying his Government’s views on the foregoing matter. Mr. Makin agreed to do so.4