Office of the Historian

130. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Robertson) to the Secretary of State1

Washington, December 28, 1955.

SUBJECT

  • Indonesian inquiries concerning military equipment and training

Discussion

NSC 55182 provides that we shall: “Increase Indonesia’s military and police capabilities by providing, especially for internal security purposes, military and police training and equipment as requested by Indonesia and determined to be in the U.S. interest.”

Since the Indonesian elections on September 29, Ambassador Mukarto and other Indonesian officials have made inquiries to various American representatives concerning the possibility of procuring military equipment and increasing training in the U.S.

No firm request has been submitted, but the Military Attaché at Djakarta has been approached preliminarily in terms of equipping a Regimental Combat Team, and we have been informed that the present plan is to develop an elite cadre beginning with such a unit equipped and trained along U.S. lines.

In each approach the Indonesians have mentioned that they do not want grant-aid; they cannot undertake entangling commitments of the kind which caused trouble on an MSA agreement in 1952;3 and they hope for some form of loan or credit under which to make purchases.

Preliminary exploration within the Department and with the Department of Defense suggest that upon a determination that it is now in our interest to respond to Indonesian requests, equipment might be made available on a credit basis:

(a)
upon certain minimum assurances necessary to establish Indonesia’s eligibility under Section 106 of the Mutual Security Act of 1954, as amended, through:
(1)
sales on terms of payment within three years up to the amount which can be made available by the military services on this basis under Section 106 of the Mutual Security Act.
(2)
transfers under Section 103 (c) of the Mutual Security Act on terms of payment of up to ten years, to the amount Defense could reallocate appropriated funds for this purpose, and
(b)
without legal necessity for any specific assurances, but subject to Presidential determination, up to $20 million, on any approved terms, under Section 401.

Staff consensus is that no attempt ought to be made to use the Section 401 funds until an attempt has been made to place such relations with Indonesia on the base of some adequate assurances with the further advantage of retaining Section 401 funds for increasing our assistance once a military program has begun.

The attached letter to the Secretary of Defense4 would constitute a policy determination that we should be preparing ourselves to give sympathetic consideration to a firm request from the Indonesians and would ask the Secretary of Defense to proceed with a determination as to the availability of funds and the nature of a loan offer we might make to the Indonesians.

Ambassador Cumming strongly favors giving their request sympathetic attention at this time.5 All interested agencies concur at the staff level that the program should be undertaken expeditiously. I agree that it would be desirable to prepare our position and authorize our officers to show interest to the extent of our capabilities to encourage present incipient Indonesian interest.

Recommendation:

That you sign the attached letter.6

  1. Source: Department of State, Central Files, 756D.5/12–2855. Secret. Drafted in PSA and cleared with FE,U/MSA, U/OP, and L/MSA.↩
  2. Document 95.↩
  3. See footnote 7, Document 116.↩
  4. Not printed.↩

  5. Telegram 1312 from Djakarta, December 2, a copy of which was attached to the source text, reads in part:

    “In view of existing preference Indo Army for American training methods and weapons and Army’s key role as obstacle to Communist entry into government, I strongly favor giving sympathetic attention to Indon request, if made. Extension United States influence in Army and strengthening it as anti-Communist force would definitely help attainment of United States objectives this area and is specifically in line with NSC policies. ARMA … concur.” (Department of State, Central Files, 756D.5/12–255)

    ↩
  6. The letter to Wilson was signed by Dulles on December 30. (Ibid., 756D.5/12–3055)↩