493.56D9/7–1954: Telegram

No. 284
The Ambassador in Indonesia (Cumming) to the Department of State

secret
priority

126. Re Deptel 72.1 Saw Prime Minister alone after presenting Jones. He told me that according to his information Pulaski rubber cargo destined to London; “I have no knowledge of nor responsibility for destination of rubber beyond London”.

I then went on to say that, speaking personally and not under instructions but with the knowledge of my government, I thought it would be very useful if Indonesians and Americans could sit down for a private and frank discussion of Indonesia’s rubber problems. I sketched in non-controversial way points mentioned Deptel 48.2 Prime Minister entirely agreed that a discussion would be useful and said that he wished that something of the sort could have been undertaken two years ago when he says he made such a suggestion while Ali in Washington. He said that it was important from Indonesia standpoint that such discussions in no way take the [Page 451] direction of restrictions on Indonesian “freedom of action to trade wherever she thought her interests lay, just as we are maintaining a very independent line in trade negotiations with China.”

I said that naturally I did not envisage such discussions branching out to include American domestic legislation such as Battle Act or recession from position already taken by US and as, for example, with regard to rubber stockpiling.

Prime Minister agreed that Jones could explore general subject in his conversations with Djuanda which will include new look at entire aid program. He thought that such conversations might also lead to Indonesian suggestions for implementation statement US delegates Colombo, which Ali appears not to have taken seriously until I brought it to his attention this morning.

Jones and I will have further recommendations to make later.

Cumming