856D.00/4–250: Telegram

The Ambassador in Indonesia (Cochran) to the Secretary of State

confidential   priority

464. Attended closing session Union Conference April 1. Summary of communiqué cabled separately.1

Hatta told me relations cordial and outcome generally satisfactory. Said pensions matter had to be referred union court. Hatta, Roem2 and some RUSI Ministers accompanying Hirschfeld and Netherlands Ministers Goetzen and van den Brink visit East Java including some estates Sunday until Tuesday.

Lieftinck3 told me granting 200 million florin credit and consolidating 80 million so-called HG/HI [ HC / RI ?] credit. Said this still left gap which he hoped US could bridge.

Hirschfeld said conference accomplished more in better spirit than anticipated. Said at RUSI insistence date for report committee set up for NNG question advanced from July 31st to 1st; considerable work in economic field also left for further study by committees. Said battallion RUSI national troops leaving for East Indonesia with Jogja Sultan giving strict orders they not mix in politics and with Netherlands commander-in-chief ordering KL and KNIL keep quiet.

Gieben4 surprised at results accomplished five days. Said no tin pledge mentioned but some terms of security for Netherlands credits would be discussed later. Said Netherlands delegation pleased Indonesian delegation sought no deviation from RTC agreement even on troublesome point Netherlands civil servants but merely wanted find best way overcome problems.

Pringo,5 Secretary General Indonesian delegation, said aside from thorny NNG question principal difficulty on economic side and caused by disagreement between advisers.6

This cable drafted prior receipt Deptel 306.7 Will provide comment answer it and related messages tomorrow.8

  1. Telegram 465, April 3, from Djakarta, not printed (656D.56D/4–350).
  2. Mohammad Roem, Indonesian High Commissioner in the Netherlands.
  3. Professor P. Lieftinck, Netherlands Minister of Finance.
  4. Abraham H. C. Gieben, Netherlands Deputy High Commissioner in Indonesia.
  5. Abdul Gafar Pringgodigdo, Chief Secretary to Sukarno.
  6. In telegram 468, April 3, from Djakarta, not printed, Cochran reported that Djuanda told him that the arrangements made with the Netherlands at the Union Conference were “not as favorable to RUSI as would appear on surface” because of various financial stipulations. (856D.00/4–350)
  7. Not printed; it transmitted to Djakarta the text of telegram 384 from The Hague.
  8. See telegram 466, infra.