Foreign Relations of the United States, 1949, The Far East and Australasia, Volume VII, Part 1

501.BC Indonesia/8–2949: Telegram

The Secretary of State to the Embassy in the Netherlands

secret
niact

Washington, August 29, 1949—7 p. m.

748. Ushic 10. Dept has adopted following general criteria and procedures for issuance of export licenses for arms to Neth: “That Policy Committee on Arms authorize issuance of export licenses to and transfers to Neth, on same basis as that which applies to other Brussels Pact countries; provided that:

Pending successful outcome of current negots looking toward a settlement of the Indo question, concurrence of all interested offices shall be obtained prior to issuance of export licenses or approval of transfers or retransfers in cases where application or surrounding circumstances indicate use or possibility of use in Indo. Requests accompanied by satisfactory evidence, including assurances from Neth Govt as to end-use, that the arms or other military equipment are required for Brussels Pact or North Atlantic Treaty defense arrangements, shall be considered as requests for material which will not be used in Indo.

Prior to transfer of sovereignty in Indo the Dept may approve transfers or retransfers, or the issuance of export licenses for material destined for Indo only where the proposed shipment to Indo will be consistent with maintenance of cease-hostilities agreement and negots looking toward final settlement of Indo dispute under UN auspices.”

Dept does not wish to implement above, which would include notification to Dutch, until receipt of comments from you as to timing thereof in relation to RTC.¹

There are at present on file with Dept a number of requests for export licenses which we will forward to you separately² for your comments. Meanwhile, however, there are two requests of an urgent nature upon which we request your comments immediately in that they involve Neth credits in U.K. which expire Aug 31. These two requests are for US consent to transfer by U.K. to Neth of 39 M–24 tanks and 630,000 cartridges 50 cal. of U.S. Lend-lease origin to be paid for by pounds 70,000 Neth credit in U.K. Equipment not for use Indo. Army Dept has no objection these transfers. Emb London has recommended favorable action earliest on basis such transfer consistent with most effective disposition U.K. surplus and reserve stock. U.K. Reps on W.U. Mil Supply Board have emphasized need for action. Dept will approve these two cases immediately unless you perceive serious objection.³

Acheson

1. Mr. Cochran’s reply (telegram 745, Hicus 15, August 30, 1 p. m.) did not favor notification at “this stage RTC”.
2. This was done in telegram 800, Ushic 17, September 17, 1 p. m., not printed.
3. Mr. Cochran having assented, the Department notified the British authorities on September 2 of its approval. As no unfavorable reaction was evident at the RTC, the Department planned to approve two further cases (out of nine) and to await developments before approving additional cases. (Memorandum of October 3 to the Department of Defense) Telegram 882, Ushic 27, October 11, 6 p. m., to The Hague, informed Mr. Cochran that three cases had been approved (501.BC Indonesia/8–3049, 10–349, and 10–1149).