756D.5 MSP/7–3052: Telegram
No. 210
The Secretary of
State to the Embassy in
Indonesia
priority
152. 1. Indo Amb Ali Jul 28 delivered note same date to Asst Secy Allison pursuant Ali’s oral undertaking May 23 to present written expression Indo Govt position re Amer aid so that US reply thereto may “establish basis for negots Djakarta” (Deptel 1240 May 23). This Note, (para 2 below) proposes draft agreement, almost identical with Burma agreement, which wld be acceptable under 511 (b) (Deptel 83 Jul 17) except for certain phrases in Note’s introductory paras. Allison and Ali in mtg July 29 (paras 3–7 below)1 agreed temporarily regard this Note as informal and unofficial while latter seeks further instrs his Govt.
2. “Indo Amb presents compliments to Hon SecState and refers to his recent conversations with Asst Secy for FE Allison concerning question of MSA Agreement between Indo Govt and US Govt of Jan. 5 1952.
“Indo Amb wishes reiterate that Indo Govt, although willing to continue acceptance of technical aid for econ development from US Govt, cannot agree that such aid be based on sec 511 (a) or (b) of MSA Act of 1952. Realizing that term of aforementioned agreement will meet with difficulty, due to fact that exchange of letters between the two Govts on Jan 5, 1952 also contains provisions re agreement of Aug 15, 1950 on assistance in form of constabulary equipment, Indo Amb informs Hon SecState that it is opinion of Indo Govt the difficulty can be overcome by separating constabulary agreement from that of agreement on Technical Aid for Econ Development.
“Since US Govt is prepared continue making available to RI technical aid for econ development under Act for Internatl Development which is administered by TCA, and is of opinion that Econ and Technical Bilateral Agreement of Oct 16, 1950 with Indo Govt wld be adequate to cover extension of technical aid by TCA, Indo Amb therefore has honor to submit herewith to Hon SecState the proposal of Indo Govt that MSA Agreement between Indo Govt and US Govt of Jan 5, 1952 be terminated, with understanding that constabulary agreement of Aug 15, 1950 will still be valid and not related to the MSA (Act). As to technical aid for econ development [Page 306] Indo Govt wishes this to be contd under a new exchange of letters which will not be based on MSA Act of 1952.
“In order to overcome difficulty prevailing in Indo at present time concerning question of Technical Aid for Econ Development under MSA Act of 1952, and in anticipation of attitude of Indo Parliament in this matter, Indo Amb informs SecState that it wld be satis to Indo Govt if, in the new exchange of letters, the obligations to be undertaken by RI in this matter be worded as follows:
‘I have honor refer to conversations which have recently taken place between reps our two Govts relating to program of Econ and Technical Coop carried on by US Govt and Indo Govt within framework of Econ and Technical Bilateral Agreement of Oct 16, 1950. I also have honor to confirm the understanding reached as a result of these conversations as follows:
‘Indo Govt reaffirms that it will act in conformity with its obligations under UN Charter and in accord with principles and purposes of UN Charter in promoting internatl understanding and goodwill in maintaining world peace and eliminating causes of internatl tension.
‘I have the honor to propose that if this understanding meets with the approval of US Govt, the present note and your note concurring therein will be considered as confirming this understanding, effective on date of your note’.
“Indo Amb proposes to SecState that above-quoted text be incorporated in an exchange of notes between reps of both Govts. As to Econ and Technical Bilateral Agreement of Oct 16, 1950, Indo Amb informs SecState that Indo Govt will submit that agreement to Indo Parliament for ratification.
“It is sincere hope of Indo Amb that the proposal of Indo Govt submitted herewith will be acceptable to US Govt.”