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

756D.5 MSP/1–753: Telegram

No. 238
The Secretary of State to the Embassy in Indonesia

confidential
priority

Washington, January 7, 1953—5:34 p.m.

1007. 1. Indo notes Jan 5, 1953 (Deptel 1006)¹ meet US requirements (Deptels 472 Sep 27 and 712 Nov 7)² and, in conjunction with and on date US note of acceptance, can form new Agreement under Sec 511 (b) MSA Act terminating and replacing Agreement Jan 5, 1952 under 511 (a). With adequate legal basis now provided for conclusion new Agreement, problem is to determine timing US note of acceptance.

2. Fol considerations emphasize advisability and desirability early conclusion new Agreement:

a. Although varying degree instability likely to be continual characteristic Indo Cabinets for some time, it shld not of itself be block to making Agreements with Indo.

b. Despite polit disadvantages 511 (a) Agreement, Indo Govt has repeatedly avowed adherence to it as most recently shown by statement Indo InfoMin (Embtel 1170 Dec 31):³

“Aid recd by Indo from US up to time this new Agreement is reached will be based on provisions of Subardjo-Cochran Agreement.

Indo Govt’s record in honoring old Agreement implies basis for confidence new Agreement will be honored despite possible Cabinet changes. Present Cabinet’s decision to negot new Agreement, furthermore, evidently reached after full Cabinet discussion, implying major parties’ concurrence, and after repeated notice to press.

c. TCA operating under severe handicap and below normal efficiency because FY 53 program being held in abeyance pending conclusion new Agreement (e.g. White Engineering project, a major part of Emb- STEM recommended program, faced with imminent termination unless contract renewed soonest).

d. In meeting N.Y. Oct 31 SecState assured Indo FonMin and Indo Amb “it was our desire arrive at mutually satis Agreement soon as possible”.

3. Dept considers Indo initiative in proposing and public decision to conclude new Agreement healthy development in US-Indo relations. In these circumstances Dept does not believe it worthwhile make issue of fact that Indo Govt has presented its formal note through Amb at Wash instead of FonMin Djakarta. Dept has informed Indo Amb US reply to be handled through US Emb Djakarta to FonMin and Indo Amb has agreed.

4. Dept desires conclude this long drawn out negot soonest. Unless you perceive overriding objection Emb should present two notes to FonMin for this purpose along lines Deptel 1008 which fols.

Acheson

1. Supra.
2. For text of telegram 712, see footnote 3, Document 235.
3. Telegram 1170 reported on a statement to the press by the Minister of Information following a Cabinet meeting the previous evening. (890.00/12–3152)