Foreign Relations of the United States, 1950, East Asia and the Pacific, Volume VI

761.5/5–2450: Telegram

The Acting Secretary of State to the Embassy in Indonesia

secret

Washington , May 24, 1950—6 p. m.

478. There fols text of draft bilateral agreement for RUSI for mil Assistance:¹

“preamble

The Govts of USA and RUSI:

Considering that the Govt of USA has enacted the Mutual Defense Assistance Act of 1949 which permits the furnishing of assistance by the USA.

Desiring to set forth the understandings which govern the furnishing of assistance by the Govt of the USA under the Mutual Defense Assistance Act of 1949, and the receipt of such assistance by RUSI:

Have agreed as follows:

article i

1. Such assistance as may be made available by the USA pursuant to this Agreement will be furnished under the provisions, and subj to such terms, conditions and termination provisions of the Mutual Defense Assistance Act of 1949 as affect the furnishing of such assistance, and such other applicable US laws as may hereafter come into effect. The two Govts will, from time to time, negotiate detailed arrangements necessary to carry out the provisions of this para.

2. The Govt of RUSI undertakes to make effective use of assistance recd pursuant to Para 1 of this Article for the purposes for which such assistance was furnished, and that Govt will not, without the prior consent of the Govt of the USA, devote assistance so furnished to purposes other than those for which it was furnished.

3. The Govt of RUSI undertakes not to transfer, without the prior consent of the Govt of the USA, title to or possessions of any equipment, material, or services which are received pursuant to Para 1, or, which are substitutable for, or similar in category to the equipment, material, or services so received.

article ii

1. Each Govt may take appropriate measures consistent with security to keep the public informed of operations under this agreement and will, at appropriate intervals, consult with the other on the measures to be employed to this end.

2. Each Govt will take such security measures as may be agreed between the two Govts in order to prevent the disclosure or compromise of classified articles, services or info furnished by the other Govt pursuant to this agreement.

article iii

The Govt of RUSI will, except as otherwise agreed to, grant duty-free treatment and exemption from internal taxation upon importation or exportation to products, property, materials or equipment imported into or exported from its terr in connection with this Agreement.

article iv

1. The two Govts will, upon the request of either of them, consult regarding any matter relating to the application of this Agreement or to operations or arrangements carried out pursuant to this Agreement.

2. The Govt of RUSI will accord, to duly authorized US reps, facilities freely and fully to observe the utilization of assistance furnished pursuant to this Agreement.

article v

1. Each Govt agrees to receive such personnel of the other govt as may be required to discharge in its terrs the responsibilities of the latter Govt under this Agreement.

2. Such personnel will in their relations to the Govt of the country to which they are assigned, operate as part of the Emb under the direction and control of the Chief of the Dipl Mission of the Govt which they are serving, and will enjoy the same privilege and immunities accorded other accredited personnel of that Embassy.

article vi

1. The Govt of RUSI will make available to the Govt of the USA rupiahs for the use of the latter Govt for its administrative expenditures within Indo in connection with assistance furnished by the Govt of the USA to the Govt of RUSI under this Agreement.

2. The two contracting Govts will initiate forthwith discussion with a view to determining the amount of such rupiahs and agreeing upon arrangements for the furnishing of such rupiahs.

(Note: The amount of local currency and the arrangements for furnishing same wld be recorded in annex to the main bilateral doc.)

article vii

The Govt of RUSI will facilitate the production, transport, export, and transfer to the Govt of the USA for such period of time, in such quantities and upon such terms and conditions as may be agreed upon, of raw and semi-processed materials required by the USA as a result of deficiencies or potential deficiencies in its own resources, and which may be available in RUSI. Arrangements for such transfers shall give due regard to the reasonable requirements for domestic use and commercial export of Indo.

article viii

1. This Agreement shall enter into force upon signature and will continue in force until three months after the receipt by either party of written notice of the intention of the other party to terminate it.

Done in duplicate, in the English and Indo languages at Djakarta, Indo, on this date day of month 1950. The English and Indo texts shall have equal force, but in case of divergence, the English text shall prevail.

In witness whereof the respective reps, duly authorized for this purpose, have signed the present Agreement.”

It is also contemplated that understanding be achieved on the fol clause, which wld not be the subject of an actual agreement, and therefore not a part of the registered bilateral.

“The two Govts recognize their mutual interest, consistent with objectives of mutual security and econ stability, in effective controls over the export of war-potential materials equipment, and, insofar as practicable, technical data; and the two Govts will consult with a view to taking measures for the accomplishment of these ends.”

Webb

1. In the immediately preceding telegram Coehran had been informed that a draft bilateral agreement and proposed secret codicil were being transmitted for his comments both as to text and as to the manner of their negotiation. Telegram 477, May 24, to Djakarta, not printed (701.5/5–2450).