Office of the Historian

191. Telegram From the Embassy in Indonesia to the Department of State1

Djakarta, November 3, 1956—9 a.m.

1081. Deptel 699.2 In view past story (mytel 8513 and 9654) I would like to inform Indonesian Prime Minister and Foreign Minister first and get their commitment on holding back publicity and thereafter with Baird inform Djuanda as soon as appointments can be made.

Because of certain sour notes in speeches by Sukarno since his return (mytel 10725) I am anxious convey our readiness negotiate 15 million line of credit to Indo Government through Prime Minister and Foreign Minister before I see Sukarno (who for other reasons, however, I plan see earliest). I believe Sukarno’s behavior emphasizing his role “revolutionary president” will be gradually modified to [Page 326] re-emphasize his position as constitutional president with interplay following factors:

1)
Opposition political party leaders to his attempts relegate them to more minor roles;
2)
Lack of wholehearted army support;
3)
Early convening Constituent Assembly in which Sukarno’s proposal abolish parties may be extensively if not interminably debated.

I believe press of events in Indonesia and on international front make it desirable that we convey our decision on line of credit to Indonesian Government earliest and with least publicity. (Djuanda has indicated Baird he wants avoid extensive public discussion this aid.) In context Middle East situation our quiet extension this aid at this time will, I believe, to some extent dampen Islamic and racial emotionalism now being aroused here by UK-French actions through favorable effect on responsible Islamic leaders in government. It will also serve to convey impression that US Far Eastern policy not subsidiary to or directly dependent on US policy in Europe. In this way we can emphasize that aid is being extended or merits our program here unrelated to extraneous political issues and thereby strengthen forces here who favor continued cooperation with US and oppose reorientation Indonesian sources aid and technical assistance.

Reply requested soonest as I would hope to see Ali and Abdulgani early next week.

Cumming
  1. Source: Department of State, Central Files, 56D.5–MSP/11–356. Secret; Priority; Limited Distribution.↩
  2. Supra.↩
  3. Document 181.↩
  4. Document 185.↩
  5. Telegram 1072 from Djakarta, November 2, reported that in a speech on October 30 before the Congress of the Indonesian Teachers Association, Sukarno reiterated and enlarged on the position he had expressed in his October 28 speech calling for the dissolution of political parties in order to increase Indonesian unity and strength. (Department of State, Central Files, 756D.00/11–256)↩