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

856D.00–TA/9–1250: Telegram

The Acting Secretary of State ¹ to the Embassy in Indonesia

confidential

Washington, September 15, 1950—7 p. m.

271. Urtel 365, Sep 12.² Dept appreciates Emb’s reports of activity of Fox and Fox interests and agrees with Emb would be undesirable if Fox succeeded through exploiting Indo’s nationalistic aspirations and ambitions his Indo friends in achieving arrangements with monopolistic characteristics which would be inconsistent with US comml policy objectives and might prove harmful to econ development Indo and US-Indo relations.

While Fox’s methods of operating may be questionable from standpoint above consideration Dept does not believe that it can police commercial jockeying between various US commercial interests in Indo nor question business practices any individual unless evidence clearly indicates such practices will restrain competition. Up to present time it is not clear that Fox and Fox interests will attain monoply position in any particular endeavor. However Dept realizes that conditions are such that this group might easily do so. In evaluating developments in this fluid situation Dept continues dependent flow full info from Emb on Fox operations.

While opinion expressed Deptel 259² that meeting with Fox at this time wld not be profitable, Dept prepared to reconsider when more definite info available Indo Service Corp re stock ownership, Fox relations to co and proposed activities of co.

Webb

1. Secretary Acheson was in New York to attend a meeting of the NATO Council and the Fifth Session of the U.N. General Assembly.
2. Not printed.
2. Not printed.