856D.10/2–350: Telegram

The Secretary of State to the Embassy in Indonesia


135. For Jessup from Rusk. Dept shares your views re necessity US financial aid at this stage to help RUSI achieve stability and withstand Communism. We have recd several indications that ExImBank officials are viewing Indo application in same light.

As you have seen from recent tels to Jakarta, Indos have not yet stated dol credit requirements, but you may be assured Dept is prepared to emphasize ExImBank at appropriate time in immed future the considerations which change problem from banking investment to polit necessity not only for our objectives in Indo, but also for our objectives throughout Southeast Asia.

We believe Djuanda has been more than satisfied with treatment he has recd here, although at times, he seems to have been somewhat perplexed, a condition probably due in very large measure to fact current trip is his first visit to US. [Rusk.]