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  4. Document 310

310. Notes of the Secretary’s Staff Meeting, Department of State, Washington, December 6, 1957, 9:15 a.m.1

Washington , December 6, 1957, 9:15 a.m.

Intelligence Briefing

1. Mr. Cumming gave the intelligence briefing.2

Indonesia

2. In connection with the report that Dutch ships of KPM were being taken over by the Indonesians, it was reported that Japan had been requested by the Indonesians to assist them in their maritime needs. The Secretary commented that Mr. Allen Dulles had not fully agreed at the NSC yesterday regarding the Communist origin of the plot to assassinate Sukarno. … The Secretary concluded that the evidence on the point did not appear to be as firm as Djakarta had reported.

Regarding Mr. Jones’ report that the Indonesian Cabinet was discussing the take-over of management of Dutch businesses rather [Page 530] than full confiscation, the Secretary inquired as to economic pressures that might be brought to bear by us. Mr. Jones reported that a proposed Export-Import Bank credit was being held up. Mr. Dillon reported that the Department had had a request for advice in connection with the Lockheed commitment to supply planes to Indonesia for delivery in 1960. The Secretary requested:

(1)

that possible economic pressures on the Indonesians be examined;

Action: FE and W

(2)

the Dutch be advised of the correct figures regarding US aid to Indonesia, as a follow-up to the Secretary’s talk with Luns.3

Action: EUR

[Here follows discussion of unrelated matters.]

  1. Source: Department of State, Secretary’s Staff Meetings: Lot 63 D 75. Secret. Prepared in the Department of State, but the source text, marked “(Informal Notes—Not Approved)”, does not indicate a drafter.↩
  2. A memorandum, dated December 6, from an unidentified staff member to R. Gordon Arneson, Deputy Director of Intelligence and Research; William McAfee, Assistant to the Director of Intelligence and Research; and Jay P. Moffat of that bureau, is attached to the source text. It lists the documents on which the briefing was based and indicates that it was largely concerned with Indonesia.↩
  3. On November 27; see Document 301. A memorandum of December 3 from Robert G. Barnes to Dulles, prepared at the latter’s request, summarized the various grants and credits extended to Indonesia since 1945 totaling approximately $460 million. It stated that the proposed grant program for fiscal year 1958 totaled $10 million. (Department of State, Central Files, 811.0056D/12–357) In a memorandum of December 5 to Elbrick, Dulles suggested “that the Dutch should be put straight in this matter as they feel that we have a leverage which, in fact, we do not have.” (Ibid., 811.0056D/12–557)↩