Foreign Relations of the United States, 1952–1954, East Asia and the Pacific, Volume XII, Part 2

756D.5 MSP/7–1452: Telegram

No. 206
The Ambassador in Indonesia (Cochran) to the Department of State¹

secret
priority

Djakarta, July 14, 1952—5 p.m.

70. Section 1. Andrews and Cochran, accompanied by Provinse, Hagberg² and Hanna³ recd by FonMin Mukarto forenoon Friday 11th with Secy Gen Darmasetiawan, polit officer Rasjid and econ off Zain present. Cochran explained purpose of visit as set forth Emb note June 30 based on Embtel [Deptel] 1354.⁴

Indos sought categoric answers to effect that (1) US aid program for Indo automatically transferred to TCA as of July 1, (2) TCA quite outside of and separate from MSA, (3) No agreement required of Indos to receive TCA aid other than 1950 bilateral ECA.

Andrews explained Cong action which removed Indo from MSA field of operations since no defense support involved in program. He said US prepared to carry out through TCA commitments made 1951 and 1952 under ECA and MSA. It was made clear, however, that TCA was not being imposed unilaterally on Indo and that inception TCA functioning and initiation 1953 program thereunder dependent entirely upon answers and attitude Indo Govt following elucidation US position.

Andrews described TCA as instrument for carrying out Pres Truman’s original concept of Point Four aid. He said Act for Internatl Development was basic legis under which TCA operates. He said TCA comes within Mutual Security Program and Mutual Security Acts are omnibus measures for all types aid and appropriations therefore.

Cochran stated that no new basic bilateral agreement required to replace that of Oct 1950. He said some exchange of letters might conceivably be required to effect such amendments as developments warranted. He took this precaution since Indos cld look upon simplest exchange of notes as formal agreement requiring parliamentary ratification, and were being very persistent in endeavoring exact categoric statement that “no further agreement required”. Cochran also explained that assurances under Sec 511 of MSA Act 1952 legally required for grant assistance of any character whether under MSA or TCA. Andrews asked whether Indo Govt wld be embarrassed by requirements give assurances.

FonMin replied there now exists in Indo Parl, press and public so much adverse sentiment toward anything connected with Mutual Security Act that any ref to MSA wld constitute such insuperable obstacle to acceptance TCA that his govt wld not be willing to recommend it. FonMin said that while he himself favored US aid he cld not ignore psychological factors of Indo.

Section 2.

Cochran asked if this meant unwillingness to go along with informal approach Ali had made toward possibly seeking substitution of Burma type 511 (b) for 511 (a) assurances given by Indos. Darma said that Indo position had shifted just as US position has changed through legis necessitating transfer Indo from MSA to TCA operating field. Andrews stressed fact growing satisfaction many other sovereign states with TCA programs and their declining unhappiness over having been obliged give any assurances.

Zain proposed “neutral” form reply to US approach. He wished eliminate all ref to Mutual Security Act, Mutual Security Program, 511 (a) 511 (b) and so on, and confine himself solely to mention of UN as he said Burma had done. He thereupon read a draft note of which no copy was given. Note referred to recent conversations between US and Indo Govt officials and to agreement Oct 1950 which Indo Govt regarded basis for receipt of aid. It continued that Indo Govt reaffirmed its adherence to principles of UN Charter and its intention work through UN for preservation world peace and friendship. Zain asked whether such note wld be satisfactory to US Govt for continuation of aid.

Cochran replied that he wld submit to Dept for consideration whatever reply Indo Govt might care to give. He remarked that this draft made no reference to Emb note of June 30. He was not clear whether “conversations” were those held in Wash or Djakarta or both. He uncertain whether his govt wld accept such note in lieu separate communications, one of which shld constitute a formal 511 assurance of some type and the other a reply to Emb note of June 30. Cochran stressed his sincere desire find basis for working out useful aid program for Indo in such manner as to end mutual embarrassments.

Hanna pointed out that if such letter were accepted it wld have to be as an assurance under 511 (b) and so reported to Cong. This cld not be hidden.

FonMin said he wld have to clear letter with Cab. If cleared by Cab and accepted by US he wld be ready submit it to Parl for approval. Cochran reminded him that 1950 agreement still not ratified. FonMin said wld submit it well as letter.

Darma interposed to stress difficult political-psychological factors with which Indo Govt has to contend.

Andrews then inquired whether, speaking quite frankly, it was wish of Indo Govt, since program causing so much embarrassment, that it be stopped.

Section 3.

Zain summarized situation thus:

1. So far as Indo Govt concerned, 511 (a) agreement still valid.

2. On Amer side program now shifted from MSA to TCA, thus introducing new factor into situation.

3. Projects are already underway in Indo. Program, he said can continue. What is necessary now is some polit maneuvering.

Andrews remarked he was interested in program of tech coop and wished it cld be removed from politics. He stated for such program to work, two nations must work together. It was case of working together or dissolving program.

Zain said program cld proceed, or if US Govt preferred, it cld stop program for time being and await developments.

Andrews stated US Govt prepared to carry out all its commitments or it was prepared to stop program “as of today” depending upon expression of desire on part Indo Govt.

Cochran inquired whether he cld expect hear further on subj prior to departure Andrews on Tues morning 15th. He inquired whether matter wld be submitted to Cabinet for decision prior 15th.

FonMin Mukarto said it was impossible Cabinet shld reach decision so soon, but Cochran wld receive some indication of attitude prior to Andrews’ departure, since Mukarto wld consult at least with PriMin. Perhaps he could consult with Cabinet. Zain said in any event Indo Govt wld give it reply whether program shld continue or not under present circumstances.

Cochran was called to FonOff forenoon 14th and recd by Darmasetiawan with Zain present.

Darma said he was speaking on behalf of FonMin. He said “FonMin reviewed our conversations of 11th with PriMin. PriMin supported FonMin’s opinion that it wld be hard to accept even 511 (b). This will be sense of FonMin’s report to Cabinet. Question still open was to sending letter of neutral type as drafted by Zain.” Cochran told Darma he would forward promptly to his govt such communication as he might receive after Cabinet decision. Cochran had with him Deptel 52 and recounted discussion of points raised in conversation between Allison and Indo Amb on US econ aid to Indo.⁵ Cochran asked Indo views on publicity with respect Andrews visit. Darma said his Min had told press who attended mtg 11th and wld announce today that Cochran had been asked to return for “further clarification.” Darma asked that Andrews and USIS give out nothing further. Darma’s desire is to leave “situation entirely open”.

Section 4.

Indo Govt faces dilemma of following character. It anticipates early attack on Parl on ground it is still accepting US aid under MSA terms which contributed to downfall predecessor govt. Furthermore it is faced with question whether it shld now accept TCA if this cannot be shown to have no connection whatever with Mutual Security Program Act or assurances. Govt will likewise face attack if it repudiates US aid in situations of extreme internal insecurity for which at least police equipment urgently needed and in situation declining economy which cld be somewhat alleviated by US technical assistance now being proffered. Even if letter such as Zain suggested shld be accepted by US it wld undoubtedly be seized upon sooner or later by Indo press and govt opposition as indicating continuing effort weak govt to fool country and US wld be charged with connivance therein.

Cochran and Andrews are instructing country TCA mission leave 1953 TCA program in abeyance pending clarification above issue of letters, ratification of accords, decision on allocation of funds and receipt Wash’s pertinent instructions.

With respect Deptel 52, Andrews and Cochran agree that US Pres shld not be asked declare that application 513 MSA Act 1952 to Indo justified on basis of importance to security of US. Such application with respect either to waiving all assurances or to granting funds wld leave Indo Govt open to charge by opponents that it is still pledging defensive support to US.

Andrews and Cochran both believe helpful program of pure technical assistance for fiscal year 53 be provided Indo for $3.1 million⁶ and request no exceptional treatment for Indo. They think fixing of this figure shld be announced soonest.

Cochran

1. Transmitted in four sections.
2. Eric Hagberg, Deputy Chief of the MSA Mission in Indonesia.
3. Willard A. Hanna, Attaché at the Embassy in Indonesia.
4. Document 205.
5. During the conversation on July 10, Ambassador Ali accepted for his government the expressed intention of the Department of State to hold the discussions on a new MSA Agreement in Djakarta. He also expressed disappointment at the possibility that economic aid in fiscal year 1953 might be cut from $8 to $5 million and asked if section 513 of the MSA Act of 1952 could be applied to Indonesia for purposes of increasing economic aid to his country. Allison expressed doubt that this could be done. (Telegram 52, July 11; 756D.5 MSP/6–3052)
6. This conclusion was communicated to the Department of State in telegram 66 from Djakarta, July 14. (890.00 TA/7–1452)