Office of the Historian

756D.00/10–952: Telegram

No. 223
The Ambassador in Indonesia (Cochran) to the Department of State

secret
priority
Djakarta, October 9, 1952—1 p.m.

662. Deptel 523.1 In last three days have reported to Department views on political situation expressed by high govt sources. These opinions constitute as accurate and intelligent an estimate of present situation as is available Embassy at this time.

Refusal Mukarto and Wilopo to accept our innocuous TCA drafts (Embtel 644) is indicative extent of caution now prevailing govt circles. Any action so fraught with political consequences as acceptance aid from US now could pull govt down regardless of nature of terms of agreement. Similarly if US were to take action terminating aid program at this time we might be accused causing govt collapse.

Consequently in view explosive domestic situation and shaky state govt I recommend Embassy be authorized to inform Foreign Office that:

(1)
US laws do not permit US Govt to waive legal requirements set out in note delivered to Foreign Office pursuant Deptels 472 and 473;2
(2)
US remains sympathetic Indo problems and has no desire pressure Indo Govt into agreement which might be dangerous for it;
(3)
US would not be offended if no new agreement is forthcoming now, but in absence thereof 1953 program under TCA cannot be instituted;
(4)
Present aid program under MSA funds will continue, in absence any Indo action to terminate January 5 agreement (to such extent as Dept is in position technically to assure and define);
(5)
US still helping Indo through Exim Bank credit, using grants, and UN activities partly financed by US;
(6)
American private organizations such [as] Rockefeller and Ford Foundations have shown readiness to help further; and
(7)
Indos try raise question of new US grant aid program at later time when they feel internal political situation would support such action.

Cochran
  1. See footnote 4, supra.↩
  2. Reference should be to telegrams 471 and 472, Documents 220 and 221. Telegram 473 did not transmit any instructions on the notes to Ambassador Cochran.↩