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

493.56D9/7–1954: Telegram

No. 285
The Secretary of State to the Embassy in Indonesia

secret
priority

Washington, July 24, 1954—2:31 p.m.

111. Embtel 126, paragraph 1.¹

1. For your information Battle Act Administrator opinion that issuance of an export license by Indonesian Government for shipment of rubber to an Eastern European Soviet bloc country would not trouble us as much regardless of fact that CNIEC was buyer and broker paying sterling for goods. Would be much more troubled by shipments “marked for London” which in fact delivered Commie China because that would involve subterfuge which would be exposed by reports of all kinds.

2. Several reports suggest dissension Indonesian Government which might affect destination rubber aboard Pulaski. Possibility also seems exist that Commie China buying rubber in effect as purchasing agency Eastern Europe using rubber as payment to Eastern Europe on trade and financial agreements and at same time permitting Commie China establish illusion in Southeast Asia that Communist China is large industrial consumer and power with additional advantage Communists this device would be help break UN embargo. If true would be helpful prevent this illusion being built up Indonesian popular mind and any disagreement between Indonesian Government and Chinese Commies re destination would obviously be our advantage.

Department recognizes however probability Indonesian Government may have very little room left influence decision. Nevertheless in pursuance line taken para 1 Embtel 27² if in your final judgement (1) Pulaski rubber is definitely going to be shipped, (2) it is clearly not going to be shipped non-Communist country, and (3) Indonesian Government may be able influence or willing try to influence decision shipment as between Commie China and Eastern Europe, you are authorized at your discretion and through whatever channel you believe appropriate advise Indonesian Government of as much of para 1 above as you believe may be useful.³

Dulles

1. Supra.
2. Document 276.

3. Subsequent correspondence indicates that the points in telegram 111 were not specifically taken up with Prime Minister Ali. In telegram 200, July 30, Ambassador Cumming stated that he had inquired again about the rubber shipment, but not with Ali who was busy with other matters. A notation on telegram 162 to Djakarta, Aug. 3, indicated that no opportunity had presented itself to make the points mentioned in telegram 111. Then, on Aug. 4, Ambassador Cumming informed the Department in telegram 218 that the Foreign Ministry, in response to his approach reported in telegram 200, had replied in writing that after checking with the Ministry of Economic Affairs it could reiterate that the rubber shipment was destined for London. The Foreign Ministry pointed out that this confirmed the position that Ali had taken in his previous conversation with Cumming, as reported in telegram 126, supra. (400.56D9/7–3054; 493.56D9/8–354; 400.56D9/8–454)

   The Embassy in Djakarta informed the Department that the Pulaski finally departed Indonesia on Aug. 17 with London as its reported destination. (Telegrams 273, Aug. 16, and 306, Aug. 20; 493.56D9/8–1654 and 493.56D9/8–2054)