218. Telegram From the Department of State to the Embassy in Indonesia0

209. Joint State–Defense message (rptd CINCPAC 31). Your 114 paragraph 3,1 and CINCPAC’s 110128Z August.2

You authorized inform Nasution, Djuanda and other GOI officials as appropriate that subject to availability of funds US planning to continue Govt to Govt sale of military equipment and services to Indonesia in FY–1960. It should be emphasized to GOI that this is not a commitment on part of US at this time. US unable at the moment give GOI indication of scope and size possible FY–1960 program since this dependent on number of factors including pending Congressional action on Mutual Security legislation. FYI. Care should be taken not to imply possible FY–1960 program would beat or above level FY–1959 program. End FYI.
In informing GOI of plans continue military sales you should state that such sales would be under provisions of the military sales agreement of August 13, 1958 and US understanding of the meaning thereof.
You may advise GOI that we presently studying Indonesian requests (CHMILTAG’s 100407Z June and 090030Z July3 and reftel) and will inform GOI as soon as we in position discuss specific program for FY–1960. At your discretion stress to GOI importance of cooperation between MILTAG and Indonesian military authorities in developing mutually agreed program requirements with appropriate priorities.
Please notify Dept, Hague, London, Canberra when you have informed GOI of foregoing.
[Page 419]

For The Hague

Promptly upon receipt info that GOI informed of foregoing, Chargé should in routine manner draw attention Secretary General FO to fact that Amb. Jones telling Indonesians that we are planning continue military aid to Indonesia in FY–1960. Chargé should convey substance numbered paragraph 1 above excepting FYI section. If and when specific FY–1960 program formulated Dutch will be informed as usual of program’s nature.

If question is raised you should make clear that this is merely continuation of present limited program within context of our overall policy toward Indonesia.

You should also inform Dutch that Amb. Jones is telling Indonesians that possible FY–60 sales military equipment would be under provisions of military sales agreement of August 13, 1958 and US understanding of meaning thereof per numbered paragraph 2 above.

We will inform Dutch here of FY–1960 plans.

For Canberra and London

We will inform Australians and British here of FY–1960 plans.

  1. Source: Department of State, Central Files, 756D.5–MSP/7–859. Secret; Niact. Drafted by Wenzel and Moore on August 14; cleared with W/MSC, EUR, and Defense; and approved by Parsons. Repeated to CINCPAC, The Hague, London, and Canberra.
  2. Paragraph 3 of telegram 114, July 18, reads: “Best move now would be advice to GOI that we intend sustain and if possible increase judiciously, the military aid program already begun. Indonesian leaders understand our fiscal procedures, that we cannot predict or anticipate congressional action. Therefore, they would be satisfied, in the interim, by an indication of our hopes and proposals for continued aid in FY 1960. Early enunciation of a specific program is, of course, very important.” (Ibid., 756D.5–MSP/7–1859) See Supplement.
  3. Dated August 11 this telegram contained CINCPAC’s tentative recommendations for a fiscal year 1960 program of military assistance for Indonesia. (Washington National Records Center, OASD/ISA Files: FRC 63 A 1672, 091.3 Indonesia)
  4. Neither found.