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

843. Joint State/Defense message. Ref: (a) Deptel 209,1 rptd The Hague 282, Canberra 57, London 1414, (b) Deptel 692,2 rptd CINCPAC unn.

FYI. President December 3 made determination pursuant Section 451(a) Mutual Security Act that up to $20 million of FY–60 funds [Page 455]may be used to furnish additional military assistance to Indonesia. (Training program of up to $1.5 million is in addition to foregoing ceiling.) As you were informed (ref b) exact program level within this ceiling will be determined when refined program formulated. Due tight level MAP funds only $15 million thus far approved for programming purposes. End FYI.
You authorized inform Nasution, Djuanda and other GOI officials as appropriate that U.S. now prepared furnish additional military equipment and services to Indonesian armed forces in FY–1960 under terms and conditions August 13, 1958 sales agreement. It anticipated that terms of sale to be offered will be along lines terms currently being negotiated for FY–1959 program.
FYI. While composition FY–1960 program not yet worked out, it expected that program will include matériel and training for all three armed services with emphasis on Army although definitive breakdown of program between three services has not yet been made. If Embassy deems it desirable, substance paragraph 2 may also be passed to Indonesian Navy and Air Force officials. Dollar ceiling or dollar amount approved for programming (para 1) should however not be divulged to Indonesians. End FYI.
Additional instructions re formulation definitive FY–1960 program will be forthcoming soonest.

For The Hague and USRO:

You should convey in routine manner substance paragraph 2 to FonOff and POLAD respectively indicating additional information re program’s nature and magnitude will be forthcoming when specific program formulated.

For Canberra and London:

Australians and British will be informed here.

  1. Source: Department of State, Central Files, 756D.5–MSP/12–759. Secret; Priority. Drafted by Wenzel, cleared in draft with ISA, and approved by Steeves. Repeated to CINCPAC, The Hague, London, Paris, and Canberra.
  2. Document 218.
  3. Telegram 692, November 6, explained that an FY 1961 military assistance program for Indonesia had not yet been formulated, but the Department of Defense had recommended a program level of approximately $20 million. The telegram also noted that the Mutual Security Coordinator recently approved an FY 1960 military assistance program for Indonesia not to exceed $20 million. (Department of State, Central Files, 756D.5–MSP/10–3059) See Supplement.