756D.5 MSP/2–1152: Telegram

No. 189
The Acting Secretary of State to the Embassy in Indonesia

confidential
priority

885. Re section 5 Embtel 1165.1 Your statement to Subardjo that he shld not mix Battle Act and UN embargo with MSA assurances correct. PNI entirely in error believing US wld construe Part 3 of para 1 to mean Indo wld have to contribute all exports US. Under Battle Act US expects Indo confine exports Title I items to free countries and if Title II items exported outside such area then only in return real quid pro quo and in limited quantities.

Since Indo note of Jan 23 wld cause unfavorable impression on US Cong if it were to be quoted as evidence that Indo Govt not giving all assurances required under MSA RI shld not use note in debate. While US was desirous receiving note indicating willingness Indo fully to cooperate in prohibiting export Title I items no formal US reply is contemplated on adequacy Indo note even though note not clear as to control measures applicable to Title I items. There is no question of terminating assistance Indo under Battle Act as long as Indo actions re Title I are believed to meet US policy objectives as set forth in Act. US has no reason believe [Page 266] Indo actions are not in accord with these objectives re Title I. US has not yet developed specific proposals re Title II.

Dept hopes authorizations contained in Deptel 8502 will prove acceptable to RI.

In event that alternatives contained in reftel are not adequate you shld keep open possibility further negot this point and report to Dept any further counter proposals.

Webb
  1. Document 184.
  2. Reference should be to telegram 856 (see footnote 2, Document 184); telegram 850, not printed, deals with New Guinea.