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

756D.5 MSP/7–1452: Telegram

No. 207
The Secretary of State to the Embassy in Indonesia

secret
priority

Washington, July 15, 1952—7:15 p.m.

70. Dept appreciates Emb’s delineation Indo Govt’s dilemma with regard to contd acceptance Amer econ and technical aid (Embtel 70 Jul 14 sec 4). Emb’s report of conversations between TCA Administrator and Amb Cochran with Indo FonMin and other high officials throws into sharp focus Indo Govt’s desire for contd Amer econ and technical aid, as contrasted with that Govt’s real polit difficulties in mtg concomitant conditions such as compliance with sec 511. Dept strongly concurs in desirability, stressed by Amb to Indos, of finding “basis for working out useful aid program for Indo in such manner as to end mutual embarrassment” (reftel sec 2).

Dept tentatively agrees with Andrews and Cochran (Embtels 70 and 66 Jul 14)¹ that helpful program of assistance in FY 53 cld be provided amounting to approx $3.1 million. Chief polit liability faced by Indo Govt in this connection appears to derive from widespread belief that acceptance of Amer aid means acceptance of tie with US. For this very reason discontinuance of Amer aid, whether primarily on Indo or Amer initiative, wld be equally widely regarded as weakening of ties between Indo and US. Dept therefore hopes that any break in continuity Amer economic and technical aid program in Indo will be avoided.

Acheson

1. See footnote 6, supra.