196. Telegram From the Embassy in the Philippines to the Department of State0

14. From Dillon. Deptel 11.1 After advising with Jones it was decided to mention C–130 only in response to Indonesian question. Sukarno raised matter in most informal way after our interview was concluded and while he was escorting me to my car. We had been talking [Page 374] about economic development in outer islands which in Indonesian view involves transfers of population from Java. Sukarno said if we really wished help in this process C–130’s would be most helpful. Since there was no possibility discuss matter in any detail I replied that he had no cause for concern and that I expected good news for him shortly. He was obviously very pleased. Jones intends arrange for formal notification to Indonesians on his return Djakarta at which time our understanding re use of aircraft will be stressed. During conversations with Djuanda and Subandrio I mentioned US gratification at Casey-Subandrio agreement using this as vehicle for re-emphasizing US views re necessity for peaceful settlement West Irian issue.

In Australia Menzies raised matter and indicated some surprise that we were making such aircraft available and wondered how Indonesians could obtain funds to purchase such expensive aircraft. However, when I informed him that we had decided issue license for ten planes he made no protest and seemed to accept matter with equanimity. As result my talk with Menzies I feel we should take great pains to inform Australians in advance and at same time as Netherlands regarding military deliveries to Indonesia.2

  1. Source: Department of State, Central Files, 756D.5622/4–1559. Confidential; Priority. Repeated to Djakarta, The Hague, and Canberra.
  2. Telegram 11, April 14, inquired about the substance of Dillon’s remarks to Sukarno regarding the sale of C–130 aircraft. (Ibid., 756D.5622/4–1459) Dillon had met with Sukarno on April 12 and the Embassy reported on this meeting in telegram 3103, April 13. During the meeting Sukarno’s principal interest “was desire President Eisenhower visit Indonesia. He made long, ardent plea this respect and promised President would receive finest reception Indonesians capable of producing.” Sukarno also commented on the improvement in U.S.-Indonesian relations and “expressed hope and belief” that improvement would continue. Dillon briefly mentioned C–130 aircraft desired by the Indonesian Air Force.” (Ibid., 611.56D/4–1359)
  3. On April 22 Jones informed Subandrio that the United States was prepared to issue licenses for the C–130 aircraft that had been requested by President Sukarno and Air Marshal Suryadarma but “only for internal security and legitimate self-defense purposes.” (Telegram 3233 from Djakarta, April 23; ibid., 756D.5–MSP/4–2359) See Supplement.