756D.5 MAP/8–1650: Telegram
The Ambassador in Indonesia (Cochran) to the Secretary of State
226. Tomap. Reference Embtel 218, August 15.1 I have delivered to Hatta note 119, dated August 15 in terms quoted in my 188, August 9. Hatta has handed me reply over his signature dated August 15 in text draft quoted Embtel 188 with following exception:
In paragraph 2 of his letter original Department wording “and such other applicable US laws as may hereafter come into effect” was restored. To meet his position on this point I initialed and left with him aide-mémoire dated August 15 as follows:
“The Ambassador of the United States of America is authorized by his government to provide the following interpretation of the use of the phrase ‘and such other applicable United States laws as may hereafter come into effect’”. In paragraph 2 of the reply dated August 15, 1950, by the Prime Minister or Acting Minister for Foreign Affairs of the Republic of the US of Indonesia, to the Ambassador’s note No. 119 of this same date:
“The purpose of including this phrase is to record that the governments of both countries know and understand that the Government of the US of America is bound by its own present and future laws in whatever aid it may undertake to furnish. If new laws involve conditions that the Government of the Republic of the US of Indonesia consider onerous, that government can reject any aid that the United States of America may possibly offer in the future. The wording cited above does not contemplate that future United States laws can retroactively bind the Government of the Republic of the US of Indonesia regarding aid already granted.” As reported in my 218, I agreed eliminate from paragraph 7 of Hatta’s reply references to export exemptions.
Matter of facilitating transfer of items needed by USA was taken care of in following exchange of letters. I wrote Hatta under date August 15, note 121:
“I have the honor to record that it is the understanding of the Government of the United States, of America that the Government of the Republic of the US of Indonesia undertakes, in accordance with Article 11 of the financial and economic agreement concluded at [Page 1052] the Round Table Conference at The Hague, to facilitate the transfer to the United States of America on reasonable terms, no less favorable than those provided to other countries or the nationals thereof, of materials in which the United States of America is actually or potentially deficient, giving due regard to the reasonable requirements of the Republic of the US of Indonesia for the domestic use and commercial export of such materials.”
Hatta replied in letter dated August 15:
[Here follows the reply stating that the understanding expressed in note 121 was correct.]
Hatta stated had consulted his most intimate Cabinet colleagues on matter secret oral undertaking. His colleagues advised him most firmly against any undertaking beyond that which he had agreed to previously. See Embtel 188 for text. Hatta and his colleagues feared any more formal and extensive undertaking would be used against himself and colleagues in RUSI Cabinet (he submitted all of their resignations night August 15) and against coming unitary government if latter should consider itself bound by such undertaking. He said I should know that Indonesian Government policy while officially “neutral” is in reality a policy against Russia and its satellites. Hatta said Indonesians did not intend to contribute resources to Russia which would increase strength of that country and its satellites and produce force which might be used aggressively against Indonesia. Said Indonesians realize Soviets desire upset RUSI or unitary government and dominate Indonesia. Mentioned Communist designation August 17, 1950 as “day of mourning”. He referred as he had yesterday (see Embtel 2172) to victory of moderate group in vote of provisional constitution, and meager polling of 16 Communist or pro-Communist votes. He said that following this poll of sentiment it will be easier for unitary government to take strong position against Communists in future.
Hatta recalled he had constantly told me Indonesia must be cautious vis-à-vis Communists until stronger internally. He feels adoption constitution in circumstances described and prospect unitary government will be moderate now will give opportunity for carrying out firmer policy. Again argued unitary Parliament with incorporation RUSI Senate and senior republicans from Jogja will make such body more conservative than original RUSI Parliament. Hatta anticipated Djuanda would continue as Minister Economy and that he would carry out economic policy of no exports to Soviet bloc. I am convinced that Hatta felt he was going limit possible in his undertaking with US.
Consequently Hatta made following oral declaration to me:
[Page 1053]“I undertake on behalf of my government not to sell war-potential materials except for delivery in Indonesia, and not to export war-potential materials to any enemy of the United States of America, either directly or through intermediary countries or channels.”
I answered in following terms which Department will note correct my original draft which had been based on garbled text from Washington: “I have been instructed to reserve the right of my government to bring up this question should, for example, significant amounts of Indonesian petroleum material appear in trade between Indonesia and the Soviet bloc”.
Hatta understood oral understanding was strictly secret. He hoped that for Indonesian political reasons it would not be necessary publish text of written documents exchanged, at least in near future. I thought publication could be postponed, but told him eventually revelation thereof required.
Full texts will be forwarded by pouch.3
- Not printed; in it Cochran reported that he had discussed the points of difference with Hatta on August 15 and that agreement was reached on all points except for the secret minute. The negotiation on that was long and Hatta had finally agreed to take under advisement a draft prepared by Cochran in light of the comments from the Department of State. (756D.5 MAP/8–1550)↩
- Not printed.↩
- The texts were transmitted as enclosures to despatch 130, August 21, from Djakarta, not printed (756D.5 MAP/8–2150).↩