501.BC Indonesia/9–1449: Telegram

The Secretary of State to the Embassy in the Netherlands

secret   priority
niact

786. Ushic 12. [For Cochran:] Stikker has private appt with Sec Sep 16.

Dept desires your comments on portion draft briefing memo [for the Secretary] qtd below having to do with Indo settlement, in event Stikker raises this question.

“If Stikker raises specific issues re Indo and inquires concerning US attitude thereon, it is suggested you tell him frankly that we wld not want to make any binding commitments here, believing all of these matters can best be worked out in free negotiations at RTC. Our general attitude on them, however, is as fol:

Neth–Indo Union. US desires to do what it can to help make Neth–Indo Union a meaningful and mutually beneficial alliance.

Financial Aid to Indo. It appears to Dept that various econ issues to be negotiated at RTC, including in particular ques of assumption of debts, might be more easily handled if both Dutch and Indos know in general terms what might be expected from US in way of future Fin aid. You may wish to tell Stikker we are studying problem with view toward determining what we can do to ease the impact of transfer of sovereignty; but we are not yet ready to give any definite indication on subject, Beyond the expression of our intention to help. (For your info, Cochran’s position re resumption ECA aid to Indo is unchanged—i.e., he does not favor resumption at this time.)

Maintenance of the Truce. If Stikker raises ques of truce violations by Repubs, and possible Dutch counter-moves, you might wish to say we regard over-all effectiveness of truce as gratifying (Dutch sources report 75 percent reduction in casualties), that we trust truce infringements will not be allowed to interfere with rapid progress of conference. You may wish also to mention our continuing efforts to aid in maintaining truce.

Dutch Bases in Indo. If Stikker raises this ques, you may wish to say that US has always considered retention by Dutch of mil bases in Indo for purposes of external defense a highly desirable part of final settlement. Precisely what can be done in this direction seems to us a matter for negotiation between parties.

“In brief, it is recommended you be as responsive to Stikker as possible, while at same time preserving Cochran’s freedom of action in current negotiations.”

[Page 487]

Regret shortness of time, but request any comment or possible additional subjects.

Acheson