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

856D.00 TA/9–252: Telegram

No. 213
The Ambassador in Indonesia (Cochran) to the Department of State

secret
priority

Djakarta, September 2, 1952—10 a.m.

429. Upon receipt Deptel 325, at 11 a.m., Aug 30,¹ I telephoned FonOff for appointment and was recd by Min Mukarto 11 a.m., Sept 1. I spoke in sense instructed.

Mukarto told me he had given Amb Ali instructions “two or three days ago” to “accept suggestions of Secy Allison”. Consequently, he said he expects Ali to proceed with negots wherein:

1. Indo accepts econ and technical aid under TCA based on ECA bilateral of Oct 1950.

2. Indo accepts reimbursable mil aid under Hatta Agreement of Aug 1950.

3. Indo does not accept aid under MSA.

4. Indo does not accept any reference in exchange of notes to 511 a or b.

5. Indo Govt will tell its Parl it has not accepted MSA.

6. US Govt is free to tell Congress Indo has complied with 511–b.

7. FonMin shld be able to conclude this new agreement before he leaves Indo for US approximately Oct 4 to attend UNGA.

Mukarto said he had delayed giving Ali definite decision so that it cld be seen what Masjumi Party conf wld do. He said that in this conf, which ended night Aug 30, compromise had been reached between Natsir and Sukiman group to avoid split in party. As result Mukarto said Sukiman, Subardjo and others of that group, plus Diah of Merdeka, will now cease fighting Wilopo govt on MSA–TCA issue. With Masjumi well as PNI thus behind govt, FonMin said it need fear no attacks on MSA–TCA and other foreign issues when Parl reconvenes this week.

Mukarto said US had been correct in not endeavoring discuss 1953 or 1954 programs with Indos in interim since Andrews’ visit. In answer my query, Mukarto said he had not consulted Cab on contemplated exchange of notes following Ali-Allison lines, but had consulted his party well as PriMin, so was sure Cab cld be brought to approve. He volunteered he wld show me pertinent papers after agreement is reached in Washington.

I have opposed continuing grant aid to Indo unless properly requested, basic agreements ratified and Congressional terms for assurances honorably met.

I now recommend:

1. That Indos be informed that if they desire base procurement TCA econ and technical aid on ECA Agreement of Oct 1950 and mil aid upon MDA (Hatta) Agreement of Aug 1950, they shld first negotiate amendment to Hatta Agreement to permit reimbursable aid for mil well as civil police and shld then have Parl ratify both agreements.

2. That Indo be informed question of assurances will be considered once basic agreements ratified.

3. That Indos be informed 5 Jan agreement operative far as US concerned, but that TCA 1953 program can not be recommenced thereunder unless and until Indos request such commencement specifically thereunder, or consummate other arrangements after ratification of two basic agreements above cited.

4. That USIS issue no statements on probable attitude our govt on Indo requests for further Ex-Im Bank credits, admission to Internatl Bank and Fund, or support on claim to West Irian.

Cochran

1. Dated Aug. 29, not printed. (856D.00 TA/8–2952)