856D.00 TA/9–1252: Telegram

No. 215
The Secretary of State to the Embassy in Indonesia

secret

385. 1. Indo Amb Ali, recd by Allison and Bonsal Sep 9, presented note of same date (text in para 2 below) which Indo Amb stated has been based on suggestions made by Allison July 30 (Deptels 152 and 153, and Embtel 429 Sep 2) and is submitted as written expression Indo Govt position re Amer aid so that US reply thereto may establish basis for negots Djakarta (para 3 Deptel 1240 May 23).

2. “Amb RI presents compliment to SecState and has honor refer recent conversations with Asst SecState for FE Allison re continuation tech aid for econ development to RI.

“Pursuant those conversations Indo Amb wishes reiterate that Indo Govt, although it desires continue receiving tech aid for econ development, cannot agree that continuance such aid be based upon exchange of notes of Jan 5 1952 between reps of Govts of US and Indo.

“As the wording of said exchange of notes Jan 5 does not any longer basically conform, either in substance or in form, with the policy of Indo Govt concerning acceptance of fon aid, Indo Amb therefore has honor submit to SecState proposal of Indo Govt that aforementioned agreement of Jan 5 be terminated and tech aid for econ development be based on a new exchange of ltrs to be agreed upon hereafter.

“Amb of RI wishes inform SecState that it wld be satis to Indo Govt if, in the new exchange of notes, the obligations to be undertaken by RI be worded as fols:

‘I have honor refer to conversations which have recently taken place between reps our two Govts relating to program of econ and tech coop carried on by Govt of RI within framework of Econ and Tech Bilateral Agreement of Oct 16, 1950. I also have honor to confirm the understanding reached as a result of these conversations as fols:

‘Govt of RI 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’.

[Page 315]

“In conclusion Indo Amb wishes refer to Constab Agreement between US Govt and Govt RI of August 15, 1950.

“It is agreeable to and it is the intention of Govt RI to continue to benefit from provisions of said agreement on a reimbursable basis and it is noticed with satis that Govt US has in principle expressed its agreement in this matter. (Dept Comments: See Deptels 1330 June 17, 1952,1 Embtel 128 July 21 and para 7 Deptel 153 July 30.) Govt RI, therefore, will submit specific requests to that end as soon as possible.”

3. Re Constab Agreement Aug 1950 Allison said some US officials might be inclined suggest advisability cancel this “old agreement” in order replace it with more suitable basis for providing reimbursable aid. Indo Amb declared his opinion “it would be worthwhile to review whole Mil Assistance question” and “make new arrangements” based on specific list to be supplied by Indo Govt showing latter’s requirements. He said Indo police force “very badly in need heavy weapons”, and cited Constab Chief Sukanto as saying “Constab can not deal with gangs in West Java without heavy equip”. Amb asked if it wld be possible deal with this matter when Dept replies to Sep 9 Note, and was answered affirmatively.

4. Allison asked Amb’s opinion as to Indo Govt’s intentions re Parl ratification of Econ and Tech Assistance Agreement Oct 16, 1950. Amb replied he had no fresh instrs this subject but he reaffirmed his previous “official statement” to Allison that Indo Govt has decided submit this agreement to Parl for ratification. (Deptel 1240 May 23 para 2.) Amb volunteered his personal opinion “it wld be wise for (his) Govt to present both Econ Bilateral and new 511b agreement for Parl ratification at same time”.

5. Amb said Andrews press statement re $3.1 million for Indo for FY 53 had caused “a lot of resentment in Indo press”. He asked if it was “official statement” observing that $3.1 million “wld be a very little amt” in terms Indo needs. Allison replied above statement not official, since final figure for FY 53 Indo program not yet determined. Bonsal said that undoubtedly amt available for FY 53 program Indo wld suffer heavily as a result gen reduction appropriations. He commented, however, that the amt which may be decided upon for current FY wld probably have minor effect on amt actually spent during this period, in view of sizeable unspent backlog of projects carried over from FY 52.

6. Allison and Amb Ali confirmed their July 29 decision (Deptel 152 para 1) to regard Amb’s July 28 Note as unofficial, and they agreed July 28 Note now supplanted by this Sep 9 Note.

[Page 316]

7. Indo Amb concluded by stating his opinion that “polit climate in Indo is now beginning to clear up”. He emphasized his Govt’s wish that matter of Amer aid “be finalized as soon as possible” and preferably before the projected departure of Indo FonMin Mukarto from Djakarta Oct 4 for UNGA. Allison replied that this is complex subj in which many agencies of US Govt are interested and that he, of course, cld make no comment on Sept 9 Note at present. He assured Indo Amb, however, that Note wld receive early attn of US Govt.

Acheson
  1. Not printed.