501.BC Indonesia/6–1349: Telegram
The Acting Secretary of State to the Consulate General at Batavia 1
324. Usgoc 381. Fol is synopsis conversation between Helb, Neth Emb, and Dept officers June 9.
Helb called on instr FonOff to seek info re Aneta press dispatch to effect that in recent letter from Dept to Matthew Fox re Amer–Indonesian Corp, Dept had stated that in view of deletion from contract of clauses which Dept considered monopolistic, Dept had withdrawn its objections to contract. In full discussion this matter, Helb was informed (a) that Dept’s objections to contract had been twofold; (b) that polit objection, based on fact that contract imputed to Repub of Indonesia powers inconsistent with its future status as member state federal USI, was overriding; (c) that in published reports Dept’s econ objection, namely monopolistic character of contract, had also been emphasized; (d) that Fox had on several occasions requested Dept’s views respecting monopolistic aspects of contract, with purpose of removing same in order relieve himself of charge of being monopolist; (e) that Dept considered Fox’s request in this regard reasonable, and had given him its views thereon, but only after clearest possible understanding with Fox that such changes as he might choose to make re monopolistic aspects of contract wld in no wise affect Dept’s political objections thereto, which still hold; (f) that Fox subsequently proposed to Soemitro changes in contract eliminating monopolistic features; (g) that Fox subsequently requested Dept’s recognition his action in this regard; (h) that Dept sent Fox a ltr on Apr 28, 1949 to effect that changes he had proposed in contract had met objections of Dept from monopolistic point of view, but had in no wise removed Dept’s objections from polit point of view; (i) that in this ltr Fox was authorized to make contents ltr public if he so desired, but he was advised Dept’s feeling that publicity on this question wld only make more difficult progress of negots; (j) that Fox had apparently refrained from making ltr public.
Helb was shown copy ltr from Dept to Fox. He readily admitted that this subj in certain Dutch circles generated more heat than light and stated his concern to minimize the heat. He seemed entirely satisfied with contents ltr. He was told that in view fact Fox himself had not made ltr public, it did not seem to us proper to give him copy, but only to acquaint him with content thereof in view of erroneous Aneta report.
In discussion involving possible transmutation of existing contract [Page 430] after formation USI to cover entire USI, and Dutch fears of such development as result good will toward Fox in certain Repub circles, Dept officers made certain observations. They stated that any new contract negotiated between USI and Fox wld in their opinion necessarily conform to all agreements reached at roundtable conference concerning commercial and econ matters. They further stated they personally felt it wld be improper for this Govt, or its nationals, to take unfair competitive advantage as result of changed polit status in Indonesia in which change this Govt had participated, and that they felt this attitude was shared by their colleagues working on problem. They concluded by expressing hope that this gen assurance, plus demonstrated fact that Aneta report referred to above was in error, wld suffice to prevent this matter becoming disruptive factor in present or future negots toward formation USI.
Helb expressed satisfaction with this exchange of views.
You are authorized to use above event this matter raised with you Batavia or Hague.
- Repeated as 506 to The Hague.↩