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

856D.00 TA/8–2852: Telegram

No. 212
The Acting Secretary of State to the Embassy in Indonesia

secret

Washington, August 28, 1952—7:52 p.m.

319. For the Ambassador from Allison. I have been increasingly concerned over situation in Indo as reflected in ur recent msgs and implications of lack of any further communication from Indo Govt re possible alteration of Jan 5 Agreement. Ur 410 and 411 of Aug 28 seem particularly significant.¹ We hoped that figure of 3.1 million dols TCA aid available this year not be disclosed until proper preparation cld have been undertaken by you along lines of presenting 1953 program primarily in terms of content rather than dol limitations. It was also believed that considerable emphasis cld be placed on undelivered carryover from FY 1952 so that emphasis in Indo cld be on effective types of projects being undertaken with result that cut in funds wld not seem so abrupt. Tel will follow.² Program presented by ur despatch 150 of Aug 12³ generally in accord with my ideas. I agree every effort shld be made to transfer where practicable projects in fields education, public health, labor and public administration to other agencies such as Ford, Rockefeller or better still to Indo Govt itself. However, believe it important, particularly in fields education and labor that there be no abrupt termination of these programs and therefore suggest that while every effort be made to transfer responsibility for them elsewhere, sufficient funds be allocated to program so that if absolutely necessary they cld be continued for at least remainder of FY 1953.

In view of lapse of one month since last overtures by Indo Amb on possible revision sec 511 Agreement and lack of any further developments in Djakarta since July 14, shld we not proceed on assumption that Jan 5 Agreement remains in force and therefore resume discussions with Indonesians on development of FY 1953 program? This long delay in any further action by the Indo Govt together with such events as reported in ur 411 lead me to wonder whether or not Indo Govt is not beginning to reconsider its attitude toward 511 (a) Agreement and in fact looking for some way in which to retain Jan 5 Agreement. If such is case, I believe we shld do nothing to make it difficult for this to happen, and in this connection I am not at all certain now is time to inform them of termination of Hatta Agreement as suggested ur 371 Aug 21.⁴ I shld think it might be easier for Indo Govt to retain Hatta Agreement, even if necessary to revise it, than to negotiate entirely new agreement for receipt of milit equipment, reimbursable or otherwise. We agree with recommendation in ur 347 Oct [Aug] 18⁵ that MAAG be withdrawn but suggest that gradual and inconspicuous reduction of MAAG personnel as their duties with program are completed and without formal notification to Indo Govt might be best way to accomplish our purposes. We have noted with pleasure that damper on publicity of constabulary program and presence and activities of MAAG group as agreed upon at time of exchange ltrs with Hatta has been successful, and it is believed that gradual phasing out of MAAG group or program will avoid risk of public debates this situation.

At this critical point in Indo-US relations I hesitate to take any action which cld be interpreted as “holding gun to head of Indonesians”, although I completely agree statement in ur despatch 150 that we shld not lead Indonesians to believe “they are the center of the universe”.

Pls give me ur frank comments on these thoughts and ur opinion whether or not we shld now recommend negotiations with Indonesians on FY 1953 program and inquiring re Indo views on 1954 program on assumption that Jan 5 Agreement continues to exist.

Bruce

1. Telegram 410 reported heavy criticism in the Indonesian press of reports that Andrews had stated that only $3.1 million would be available in TCA aid to Indonesia in fiscal year 1953. Telegram 411 indicated that many public figures, including former Prime Minister Sukiman and members of his Cabinet such as Subardjo and Wibisono, had recently spoken out in defense of their negotiation of the Jan. 5 agreement and their policy of non-hostility toward the United States. (856D.00/82852)
2. Telegram 325, Aug. 29, not printed. (856D.00 TA/8–2952)
3. Not printed.
4. Not printed. Reference is to the Agreement of Aug. 15, 1950, on provision of U.S. equipment to the Indonesian constabulary, signed by Hatta as Foreign Minister. (TIAS No. 2306; printed in 2 UST 1619)
5. Not printed.