115. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Robertson) to the Under Secretary of State (Hoover)1

SUBJECT

  • OCB Meeting to Consider Outline Plan of Operations for Indonesia2 under NSC 55183

Summary of Outline Plan

The fall of the Ali Government and the coming to power of a more conservative, pro-Western and anti-Communist coalition dominated by the moderate Muslim and Socialist parties have created a substantially more favorable frame of reference for U.S. operations [Page 195] than the one existing when NSC 5518 was drafted. However, with elections beginning on September 29, the new Government is essentially interim and caretaker in character. Our first and basic objective, therefore, is that the elements presently in control of the Government consolidate their position by a clear-cut victory at the polls. Once this has been achieved, a revision of NSC 5518 and the Outline Plan of Operations will probably be necessary. For the present, the plan provides for:

a)
Continuation of our existing technical assistance, USIA, policy training, and exchange of persons programs.
b)
Continued negotiations on a PL 480 program4 and a Treaty of Friendship, Commerce and Navigation, begun under the Ali Government and therefore politically non-controversial.
c)
“Being prepared in response to Indonesian requests and when we determine conditions to be more favorable”, to provide economic and other assistance; detailed programs are outlined in OCB paragraphs 30–45, 47, 49, and 50.
d)
To sympathetically respond to Indonesian overtures for closer and more friendly relations with the United States and to encourage such relations with other Free World Countries.

Recommendation

That you endorse the Outline Plan of Operations for OCB approval.

  1. Source: Department of State, OCB Files: Lot 62 D 430, Indonesia. Top Secret.
  2. Under reference is a September 9 draft of a paper entitled “Outline Plan of Operations With Respect to Indonesia”, dated September 21, which was approved with revisions by the OCB that day. (Ibid.)
  3. Document 95.
  4. In a note of July 12, the Indonesian Government notified the U.S. Government that it was interested in purchasing surplus agricultural commodities under P.L. 480. (Despatch 32 from Djakarta, July 13; Department of State, Central Files, 411.56D41/7–1355)