237. Memorandum From the Assistant Secretary of State for Far Eastern Affairs (Robertson) to the Secretary of State1
SUBJECT
- Current developments in Indonesia
In its first two months in office, Djuanda’s emergency cabinet appears to be making a determined effort to resolve amicably the problem of the regional “rebellions” which broke out in Indonesia beginning last December and to restore the central government’s authority over the outlying provinces. Djuanda has led missions to Sumatra and to East Indonesia for on-the-spot talks with rebel leaders to try to develop the basis for a solution. Our Embassy reports that on June 6 an agreement was reached between Army Chief of Staff Nasution and and Lt. Col. Sumual, Commander of the rebels in East Indonesia, calling for Sumual’s transfer and reorganization of his Command. This agreement has not yet been completely implemented, however, with Sumual still not transferred from the Celebes. The counsel of former Vice President Hatta has been obtained by Djuanda and other Cabinet Ministers, especially in these negotiations with the provinces. Although the Djuanda government has been attacked by the Moslem Masjumi and other parties as having been unconstitutionally formed by Sukarno, the government’s announced program was recently accorded a tacit approval by the Parliament.
Nevertheless, the Djuanda government continues to face an extremely difficult task in its efforts to bring order out of the present chaos. The amount of economic concessions which the government can offer in its bargaining with the provinces is limited by the present severe financial condition of the country. Djuanda’s freedom of action also appears to be limited by President Sukarno, who advocates a hard line vis-à-vis the rebel provinces and who is intent on implementing his proposed concept for a “new-style” government for Indonesia. With Sukarno’s guidance the government has recently created a National Council which will advise the Cabinet on important matters of state. The Council, which will be presided over by Sukarno, will have a total membership of 45, representing functional, regional, armed forces and law enforcement groups. Our Embassy reports that the membership state which has been approved by the Cabinet is dominated by leftists, including four with avowed Communist Party affiliations and eight others from the extreme left. Three of the proposed members have already declined their appointments [Page 396] and it is possible that others may follow suit. The powers of the Council remain somewhat vague although Djuanda has stated that the Council’s advice will not be binding on the Cabinet and the Cabinet will remain responsible to Parliament. Reaction to the announcement of the Council state has been generally unenthusiastic. Strong opposition has been registered in Moslem (Masjumi) and Central Sumatran circles.
We may expect a period of protracted negotiations and maneuvering on the part of the central government and the provinces with the continuation of the State of War and Siege (martial law) for some time. If the central government is able to grant and put into effect reasonable concessions to the rebel demands for more regional autonomy and development assistance and if Djuanda and other moderate government leaders can temper Sukarno’s plans for “guided democracy”, it is possible that the government will eventually achieve some measure of success in restoring order to the country.
- Source: Department of State, Central Files, 756D.13/6–2557. Confidential. Initialed by Jones, apparently in Robertson’s absence.↩