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

856D.00 TA/9–2652: Telegram

No. 221
The Secretary of State to the Embassy in Indonesia

confidential
priority

Washington, September 27, 1952—1:47 p.m.

472. Pls present fol informal memo to FonMin (Embtels 584 and 585 Sep 26):

Amb of US refers to FonMin’s two draft Notes dated Sept 25, 1952 pursuant Amb’s Notes 49 and 50, Sep 16 and 52 Sep 22, and Note Sep 9 1952 addressed to SecState by Indo Amb US. US Govt considers these draft Notes cld in their present form become part of the new agreements desired by Indo Govt, if modified solely to include certain tech and legal provisions referred to in Amb’s Note 52, which were mentioned by Asst SecState for FE to Indo Amb in their conversation July 29.

First of these legal provisions deals with guaranties against attachment of funds derived from any program of assistance, and wld appropriately be included in FonMin’s draft on econ and tech coop. Second legal provision deals with return of any grant constab equip and materials which may no longer be required. This provision, although it affects only equip and materials already supplied under Constab Agreement 1950 on grant basis, wld appropriately be included in FonMin’s draft on reimbursable aid.

If modified to include above legal provisions, the two draft notes wld read as fols: First Note—

“FonOff refers to conversations recently taken place between reps of our two Govts relating to program of econ and tech coop carried on by US and RI within framework of STEM agreement of October 16, 1950. FonOff also refers to Note of Sep 9, 1952 addressed to SecState of US by Indo Amb and to Notes of Amer Emb Nr. 49 and 50 dated Sep 16.

FonOff has honour to confirm understanding reached as a result of these conversations and notes as fols: ‘RI reaffirms that it will act in conformity with its obligations under the UN Charter and in accord with principles and purposes of UN Charter in promoting internatl understanding and goodwill, in maintaining world peace, and in eliminating causes of internatl tension.’

The two Govts will establish procedures whereby Indo Govt will so deposit, segregate, or assure title to all funds allocated to or derived from any program of assistance undertaken by US Govt so that such funds shall not be subject to garnishment, attachment, seizure or other legal process by any person, firm, agency, corporation, organization or Govt, when in opinion of US Govt any such legal process wld interfere with attainment of objectives of said program of assistance.

FonOff has honour to propose that if this understanding meets with approval of US, present note and your note concurring therein will be considered as confirming this understanding, effective on date of your note.

FonOff further wld like to propose that Indo-US Agreement of Jan 5, 1952 be considered as terminated on date of your concurring note referred to in preceding para.”

Second Note:—

“FonOff refers to Emb Notes Nr. 50, Sep 16 and Nr. 52, Sep 22.

RI has, in accordance with last para Note Sep 9, addressed to SecState by Indo Amb in Wash, honour to propose to US that undelivered balance of constab equip authorized under agreement of Aug 15, 1950, be transferred from grant to reimbursable basis.

The two Govts will establish procedures under which equip and materials furnished by US Govt under Constab Agreement Aug 15, 1950 other than equip or materials furnished under terms requiring reimbursement, and no longer required for purposes for which originally made available will be offered for return to the Govt which furnished such assistance for appropriate disposition.

RI undertakes not to transfer, without prior consent of US, title to or possession of any equipment, material or services recd pursuant to this reimbursable basis. (This para optional, since undertaking already given para 4 Indo Note Aug 15, 1950.)

FonOff proposes that if this proposal meets with approval of US, present note and your note concurring therein will be considered as confirming this reimbursable basis.”¹

Acheson

1. On Oct. 3, Ambassador Cochran reported:

   “At 10 p.m. 29 September personally delivered to FonMin Mukarto memorandum of that date utilizing language Deptel 472 and providing explanation along lines Deptel 471.” (Telegram 620; 856D.00 TA/10–352)