501.BC Indonesia/12–3049: Telegram
The Secretary of State to the Ambassador in Indonesia (Cochran)
672. For Cochran: On Dec 28 Matthew Fox, with his counsel Robert Nathan, discussed his Indo relationships with UnSecy, who was unacquainted with details this matter and referred him to Butterworth, who explained in general terms difficulties we find with contract. UnSecy later saw Nathan without Fox present and explained to him, as counsel, that he entertained greatest doubts that Dept cld ever approve any kind contract giving exclusive and preclusive rights; that Dept fundamentally believed such contract unwise for Indo Repub and also for Amer industry. He suggested Nathan endeavor find formula which wld give best protection Fox interests but not go beyond framework of kind of relationships Dept cld approve and remaining substantially similar relationships obtainable other Amer businessmen, particularly removing monopolistic features. Nathan expressed desire serve both his client and Govt by finding some formula or arrangement along above lines and is working on this problem.
Meantime, Fox states Hatta has requested him visit Indo and expects leave US Sun. He urgently desires meet you and at suggestion UnSecy, Nathan has submitted fol request:
“Am writing this letter on behalf of Matthew Fox with whom I have been working for past two years on Indo. As you know, Mr. Fox has a contract with the Repub of Indo providing for establishment of the Amer–Indo Corp. At invitation of Premier of the new US of Indo, Mr. Hatta, Mr. Fox is proceeding to Jakarta on Sunday, Jan 1. There he will discuss relationship of this contract with US of Indo.
“Mr. Fox is anxious to establish a relationship with the Indos which will in no way conflict with Amer commercial and fon policy. He is more than anxious to establish his arrangement in such way as to coincide fully with objectives of our Govt and to maximum benefit of Indo people. As you have been advised, he has devoted two years and substantial resources on behalf of Indo people and, frankly, he feels he [Page 590] is warranted in being given fullest and friendliest ear by our Govt offcials as wld be afforded any Amer business enterprise. On other hand, he does not request Govt approval nor Govt assistance in his economic undertaking.
“Mr. Fox wld like very much to see Amb Cochran in Jakarta. Again, his purpose in desiring meeting with our Amb is not to secure his assistance or his approval but rather to be able undertake full and frank discussion of his relationships with the Indos and to avoid any misunderstanding and any inconsistencies with Amer policy.
“Mr. Fox and I wld be most appreciative of your assistance in transmitting this requests to Amb Cochran.”
In view attitude Nathan find mutually acceptable formula and Fox’s stated desire adjust his differences with Dept, believe it desirable you at least listen to his statements along this line. Fox had opinion you had stated both in Wash and to Indo officials your opposition his contract and that this was your personal view. UnSecy forcefully informed him your expressions of views were those of the Dept and completely official.
Pls advise if you are willing receive Fox.