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

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

Djakarta, June 13, 1957—8 a.m.

3047. Subandrio informed today substance Deptel 2044.²

He indicated Indonesia interested in credit arrangements and even in receiving grant military aid “as was provided Indonesia police few years ago”.³

Subandrio said Indonesian Government might wish to frame its requests in terms of categories on basis of priority. He intimated that Ministries of Defense and Finance wanted to obtain general idea of how much credit they might be able to get for their planning purposes. He asked if such credit would come from 1958 military aid appropriation and, if so, about what Indonesia could expect out of amount available for Southeast Asia. He also inquired as to relationship between equipment purchased for cash and that available on credit. He asked “for instance, might it be 5 million dollars in cash and 50 million credit”. He asked if some military aid might be available on grant basis and if so, how much. In reply to query as to whether Indonesian request would require special approach to U.S. Congress, he was told it would not.

If this aid is to come from funds appropriated under 1958 Military Assistance Program, he cannot understand why United States is unable to give him an estimate of approximate amount which Indonesia might be able to obtain. Finally he asked if credit for such purposes was normally on long term or short term basis.

Subandrio stated that he was aware Indonesia military had been working with U.S. Armed Forces Attachés and that he understood they had drawn up lists together. He was informed Attaché had merely checked lists on request Indonesian military to help ascertain proper terminology and that they had not helped prepare lists. He said he understood military had practically finished its task of preparing lists but before taking another step, they needed answers to questions cited above.

Assistant Army Attaché states possible request by Indonesian Government for U.S. arms aid had become widely known within Indonesian Armed Forces and that even some former military officers, now civilians, had approached him and stated they were to be designated to coordinate such purchases. Assistant Army Attaché stated he knew nothing of any such proposed purchases and that if they had such assignment they should obtain written designation from Ministry of Foreign Affairs.

Allison

1. Source: Department of State, Central Files, 756D.56/6–1357. Secret.
2. Telegram 2044 to Djakarta, June 7, stated that the United States was unable to give a specific reply to Indonesian queries about the magnitude and terms of payment for arms procurement until a detailed list of Indonesian requirements was received. It suggested that a list be submitted on an informal basis, after which the United States would furnish Indonesia with a price and availability study without any commitment on either side. (Ibid., 756D.56/6–157)
3. Reference is apparently to assistance provided to the Indonesian police between 1950 and 1953 under an agreement effected by an exchange of notes at Djakarta on August 15, 1950. (2 UST 1619) Grant aid under the agreement was stopped when its legal basis ended, with the termination on January 12, 1953, of the U.S.-Indonesian agreement of January 5, 1952; see Foreign Relations, 1952–1954, vol. XII, Part 2, pp. 347 ff. Training and equipment were subsequently provided to the Indonesian police under the technical assistance program.