105. Telegram From the Embassy in Indonesia to the Department of State1
446. My telegram 445.2 In subsequent conversation with Salem and Anak Agung present, President Sukarno told me he had been greatly impressed with benefits received by Saudi Arabia from Aramco oil contract. He said he did not need guilders or pound sterling, but Indo needed more dollars for its development, and it was his hope that America would “produce more dollars from Indo oil”. Foreign Minister observed that to do so American companies, both Caltex and Stanvac, needed increased areas for exploration and possible exploitation. I observed that both Stanvac and Caltex had already planned heavy increases in capital expenditures to take place in relatively near future but that in addition to increased exploration concessions they would also need a friendly atmosphere in Indo and [Page 179] perhaps the working out of new contracts mutually advantageous to the companies and to Indo. President remarked “with a good spirit and [garbled], I see no reason why this cannot be worked out”.
Foregoing is only one indication of a change which I believe is taking place in political climate as result new Cabinet’s accession to power, but I think we cannot discount possibility Sukarno himself has experienced a change of heart towards foreign capital investment, especially in petroleum field, as result of his trip to Saudi Arabi and perhaps also in acceptance of the at least temporary departure from the scene of the emotional nationalism of the Ali government. (We can of course continue to see that emotional nationalism expressed on the Irian question.)
Developments, of course, will be slow but this is the first real break I have seen which might be helpful to US investment interests in this country.
I believe Under Secretary Hoover would be interested in this and preceding telegrams [telegram?].3
- Source: Department of State, Central Files, 611.56D/8–1655. Secret.↩
- Telegram 445 from Djakarta, August 16, reported that at a state banquet the previous evening, Sukarno had asked Cumming if he would arrange a visit to the Standard-Vacuum Oil Company in Palembang, Sumatra, for the visiting Egyptian Deputy Prime Minister, Gamal Salem. (Ibid.)↩
- Neither the source text nor the file copy of the preceding telegram bears any indication that either was sent to Hoover.↩