Foreign Relations of the United States, 1955–1957, Southeast Asia, Volume XXII

164. Telegram From the Department of State to the Embassy in Indonesia¹

Washington, July 3, 1956—7:01 p.m.

15. Urtel 3283.² You are authorized discuss informally with Foreign Minister government to government supply arms to Indonesia along following lines:

Existing legislation authorizes sale military equipment materials services provided President has received assurances satisfactory to him that such equipment is for legitimate self defense and would not be used for aggression. Under existing policy we also would wish assurance items would not be sold or otherwise disposed of without consent U.S. Assurances this nature have been received from India and other uncommitted countries. Such “assurances” need not be in form bilateral agreement but may be unilateral statement. Payment in dollars may be made either in cash or to partial extent short-term (up to three years) credits depending on stock situation particular items. Detailed information types quantity material desired would be necessary in determining credit terms.

FYI. Existing legislation also authorizes supply of military equipment services without above mentioned assurances and on long-term credit up to $20 million on Presidential determination it important to security U.S. (Section 401 MSA). While we might resort Section 401 for authority should Indo desire long-term credit, believe we should make every effort secure assurances.

Indo Embassy officer has asked to discuss informally government to government supply arms. Will delay meeting until after you have had opportunity discuss with FonMin. End FYI.

Hoover

1. Source: Department of State, Central Files, 756D.5–MSP/6–2656. Secret; Limit Distribution. Drafted in SPA; cleared with U/MSA, L, ICA, and the Department of Defense; and approved in FE.
2. Telegram 3283 from Djakarta, June 26, reported that in a conversation with Cumming that day, Ali confirmed his interest in learning what in principle the United States could do in providing Indonesia with arms and military equipment through sale or otherwise; he was especially interested in the question of terms of payment. (Ibid.)