856D.00 TA/11–2052
No. 236
Memorandum of Conversation, by Samuel T. Parelman, Special Assistant to
the Assistant Secretary of State for Far Eastern Affairs (Allison)
Subject:
- FE–TCA Meeting on Indonesia
Participants:
- TCA—Mr. Andrews
- TCA—Mr. Bingham1
- TCA—Mr. Hanson2
- Ambassador Cochran3
- FE—Mr. Allison
- FE—Mr. Bonsal
- FE—Mr. Parelman
A meeting was held in Mr. Allison’s office on Tuesday, November 18, 1952, for the purpose of establishing an agreed upon position as to the size of the proposed FY 1954 TCA program for Indonesia.
Mr. Allison initiated the discussion on the program by indicating his feeling that the internal political situation in Indonesia was best judged by the United States officials on the spot rather than in Washington. He stated that the recommendation which he had made from Singapore for an approximately $4 million program rather than the higher figure of $6.2 million was based on the conversations which he had held in Djakarta with the economic and technical staffs of the STEM and Embassy as well as with the Ambassador.
Mr. Andrews stated that he fully recognized the need for obtaining the proper political agreement with Indonesia and that it was his strong feeling that if such a proper agreement is achieved that the amount of $6.2 million would definitely be needed to do a genuine program job. He did feel, however, that at the moment the political agreement was the governing factor. He felt also that the amount of assistance which the country could use was virtually unlimited.
Ambassador Cochran stated that he felt just as strongly today about a small program as he had originally when he had first recommended the program for FY 1954 of $3.1 million. He went on to state that the Indonesians were proceeding very slowly in doing what they had to do with respect to the programs and the agreements and that it was his feeling that they would not understand a doubling in 1954 of the $3.1 million figure which had been approved for 1953. The Ambassador then proceeded to review in some detail the current political situation in Indonesia with particular emphasis on the recent parliamentary crisis.
Mr. Bonsal then described a recent meeting which he had had with Minister Mukarto during which Mukarto had expressed enthusiasm for the United States technical assistance program. Mr. Bonsal indicated that he felt some optimism as to the outcome of Mukarto’s representations in Djakarta but was concerned about the delay of at least three weeks before Mukarto would return to Djakarta.
Mr. Parelman brought up the matter of the FY 1953 program by inquiring as to the opinions of those present about proceeding with the current year’s program in view of the fact that almost five months of the current fiscal year had passed without any action on that program. Mr. Andrews stated that as far as he was concerned the freeze was still on until a political decision was made to relieve [Page 345] it and he was looking to the Ambassador and FE to indicate when the freeze should be taken off. The Ambassador stated that he did not feel that the United States ought to retreat from its present position on the freeze. He referred to earlier conversations which he had had in Djakarta and which had been reported to the Department and said that in those conversations the Indonesians had indicated that they do not want to accept TCA assistance under the present 511 (a) agreement. He felt that the next move was up to the Indonesians to get a new agreement and then we would be able to go ahead with the 1953 program. The Ambassador, in response to an inquiry, stated that he did not think it would be necessary to await parliamentary ratification to an agreement with Mukarto but he felt that it was important that Mukarto have the backing of the Cabinet in order to avoid the difficulties which had developed for Subardjo.
Mr. Bonsal expressed deep concern that because of the FY 1953 freeze the program might grind to a full stop in many of the projects with a possibility that irreparable damage might be done in fulfilling the program objectives. He inquired as to the legality and feasibility of TCA making ad hoc allotments as it became clear that individual projects would be coming to a close because of lack of funds. The Ambassador felt that the next move was up to the Indonesians. We should hold our ground until they conclude an agreement with the United States for TCA FY 1953 aid under mutually acceptable assurances. The TCA representatives, responding to Mr. Bonsal’s inquiry, stated that they did not see any legal impediments to using the FY 1953 funds inasmuch as an allocation had already been made. Mr. Andrews pointed out that while TCA was prepared to move promptly on the FY 1953 programs it was clear that the Ambassador did not think we ought to go ahead as a matter of principle.
In response to a request from Mr. Bonsal, Mr. Andrews stated that he felt they could very readily provide FE advance information on an ad hoc basis as it appeared that individual projects would be closed out for lack of funds.
Mr. Andrews said that he would like to discuss briefly the matter of the labor program in view of the fact that he had been subjected to considerable pressure from labor interests because of a rumor that the labor projects were being cut out of the Indonesian program. He wanted to clear up any misunderstanding that might exist on that score since their proposed program for FY 1954 as well as the FY 1953 program did include provision for certain labor projects. The Ambassador said that while the labor projects as such had been excluded from his 1954 $3.1 million program he felt that they could be taken up under a different label as part of the engineering [Page 346] contract. He would prefer to await the results of the first group of trainees to determine the value of the program. Mr. Hanson confirmed that a program of $4.1 million for FY 1954 would permit the continuation of the present type of labor projects.
Mr. Andrews then brought up the matter of the English Language Institute by saying that this was another program that they would like to settle at this meeting. He said that if everything that he had heard about the manner in which it was being run was true, then the present arrangement was apparently doing more damage than good for United States relations with Indonesia. He said that he was referring to the stories about the misbehavior and internal fighting which apparently had gone on in Djogja. He stated that it was his impression that there was a need for a language program but perhaps the answer would be to arrange for a contract with an educational institution in the United States instead of dealing with individual itinerant teachers. The Ambassador expressed his continuing doubts and reservations as to the validity of this particular program. He did point out, however, that while he had attempted to get the representatives of the Ford Foundation interested in taking over this type of program that they had indicated no desire to do so. He suggested that this operation be discussed further by a technical committee and volunteered to be present if desired.
In view of the fact that Mr. Allison had had to leave the meeting early to keep an appointment with the Secretary and a final decision on the FY 1954 program had been delayed pending his return, Mr. Parelman asked if the group was prepared to agree on a final State Department position on the issue of $4.1 million versus $6.2 million for a 1954 program. Mr. Andrews said that in view of Mr. Allison’s position as expressed in his telegram from Singapore and the Ambassador’s feelings about a smaller program, that he was prepared to accede to the political position and agree to a $4.1 million program. No dissent from this figure was offered by any of the others present. Mr. Parelman then stated that he would represent to Mr. Martin’s office that complete agreement had been reached on this figure for FY 1954 by the offices represented at the meeting.