205. Memorandum From the President’s Special Assistant for National Security Affairs (Bundy) to President Kennedy0

SUBJECT

  • West Irian

Attached are papers on the West Irian matter which the Secretary of State will be raising with you next Tuesday.1 These are worth careful [Page 463] study because most of the specialists in the area believe that the Secretary’s respect for the Australians and dislike of Sukarno has led him to take a position in the UN debate which, if continued, can only help the Communists. Sukarno, I know, is not your own favorite statesman, but the real point is that at the moment we seem to be working against the interest of the Indonesian moderates—our one reliance against eventual Communist take-over there.

At Tab A is a covering memorandum from Walt Rostow. At Tab B is a sensible account of the whole affair from Robert Johnson of the NSC staff. At Tab C are relevant cables and ticker stories.2

McG.B.3

Tab A4

Memorandum From the President’s Deputy Special Assistant for National Security Affairs (Rostow) to President Kennedy

As Bob Johnson’s attached account of the West Irian affair (and the batch of telegrams) indicate, we have come to the end of one phase and must design another.

After a meeting at the State Department today5 it was agreed that the Secretary will have a position to present to you next Tuesday. In the meanwhile, the Department will be reassessing the situation, including the political situation in both the Netherlands and Indonesia as it stands after the debate.

So far as Indonesia is concerned, we have had two distinct noises from Sukarno. One, reported in the attached telegram No. 975,6 is relatively [Page 464] pacific and conciliatory. The other is a speech made to the Indonesian Army Staff College on November 30 in which Sukarno is reported as saying that the “present moment is the proper time” to settle the West Irian question and that “he is going to issue orders soon about the liberation” of the area. There is no doubt that the Indonesians in New York are furious with us.

The general assessment is that Sukarno’s threat is psychological warfare, although it will have the effect of stiffening the Dutch and strengthening Luns’ position. On the other hand, Sukarno may not be able to control the impulse to seize West Irian if it gathers momentum and there is no alternative diplomatic path in sight.

The Dutch have been equally unhelpful. Today they have changed the name of West New Guinea to West Papua and given the place a new flag. This is likely to infuriate Djakarta.

This diplomatic crisis coincides with two economic facts:

1.
At the moment Indonesia is suffering a grave balance of payments crisis; and
2.
There is a distinct upsurge of interest and concern with longer run economic development, centered around one of Sukarno’s possible successors, Chaerul Saleh, who was recently in the U.S.

One can conceive of the Russians assessing this moment as an occasion to make a double-barreled move: to push Sukarno towards war and to urge him to draw down his more than $500,000,000 in economic aid commitment from the Bloc. If this is the way things go, Sukarno would be isolated from the Western community diplomatically, increasingly dependent on the Bloc, the local Communist Party would be powerfully strengthened, and the hand of the moderates in Indonesia gravely weakened.

There is also the possibility of a double-barreled Western move: to press the Dutch towards a bilateral negotiation with Indonesia and to take measures to help Indonesia through its short-run crisis while beginning to work more systematically with those in Indonesia concerned with economic development.

With respect to the latter, Don Humphrey is filing his report on the Indonesian economy, which resulted from the first of your discussions with Sukarno in April. It is a good, sensible, and not unhopeful, report.

It is the feeling of all of us on your staff that the Western world has got to consider this problem somewhat less in terms of the pure diplomacy of West Irian and more in terms of a common interest in frustrating Communism in Indonesia. The Australians would benefit little from holding West Irian out of Indonesian hands if all of Indonesia should go Communist. In our view Communism in Indonesia is not inevitable. We have important advantages in the Indonesian army; in the younger [Page 465] Nationalists symbolized by Saleh; and in the predominant desire of the Indonesians to remain independent.

On the other hand, there is a powerful and well led Communist Party; and the Soviets have put up $833,000,000 in military credits, more than $500,000,000 in economic aid commitments. They understand well that this is a crucial piece of real estate.

I sense after today’s meeting that the State Department will move towards increased pressure on the Dutch to talk directly with the Indonesians. If we go that route, I think it will be important to persuade the Australians of the wisdom of looking at the problem rather more in terms of salvaging Indonesia from Communism and rather less in terms of the classic question of West Irian itself.

I know of no one in the town who does not believe that, soon or late, the Indonesians will get West Irian. If this is indeed the way it will go, it may be important for us to work with this trend, using it for the common benefit, rather than permitting the Communists to continue to exploit this issue to press Indonesia closer to the Communist Bloc externally and towards Communism internally.

A final word. We must move fast. In the wake of the UN fiasco both the Dutch and the Indonesians may do things which will quickly heighten tensions. In fact, as of today, they have both started down that track.

Tab B7

Memorandum From Robert H. Johnson of the National Security Council Staff to President Kennedy

SUBJECT

  • West New Guinea

Background

At the Round Table Conference of November 1949 at which Indonesia was granted its independence from The Netherlands, the two sides [Page 466] were unable to agree upon the future of New Guinea. They agreed that its status should be determined by negotiations within a year of Indonesian independence. The Indonesians were under the impression that the Dutch had tabled the issue as a face-saving device to facilitate ratification of the Round Table agreement by the Dutch Parliament and that once ratification had been obtained, the Dutch would yield the territory to Indonesia. Negotiations in 1950–55 failed to produce agreement. Indonesia bases its claim to the territory primarily on the grounds that it was part of the Netherlands East Indies of which the Republic of Indonesia became the successor state. Indonesia’s claim is essentially that of any nationalist movement to the territory it identifies, because of past association, with the nation. The Dutch argue that geologically, ethnically and culturally the territory is distinct from Indonesia.

Indonesia has consistently sought UN action on a resolution calling for bilateral talks between Indonesia and The Netherlands. When it failed in 1957 to get a two-thirds majority, Sukarno took over all Dutch assets in Indonesia. When the Dutch sent an aircraft carrier and military reenforcements to West New Guinea in mid-1960, Indonesia broke diplomatic negotiations and concluded a $500 million arms deal with the USSR. This arms aid has been subsequently increased to over $830 million.

The issue of West New Guinea has been central to Indonesian politics, has diverted attention from Indonesia’s main task of nation-building, has been exploited by the Communist Party (which is nearly the largest outside the Bloc) and has been exploited by Sukarno as a means of frustrating opposition to himself and his policies. Thus a very heavy price has been paid by the Dutch and by the West more generally. We are approaching the point where the stake may be the future orientation of Indonesia itself.

Recent Developments and the Current Situation

In the past UN votes on Indonesian resolutions calling for bilateral talks, the U.S. has regularly abstained. We have taken a somewhat equivocal position with the Dutch on the question of whether we would be prepared to support them with U.S. forces in the event of an attack on West New Guinea. As a result of talks with Luns last spring the Dutch have, at least, been left in considerable doubt as to whether such support would be forthcoming.

This Administration, recognizing the great difficulties we should be in if the Indonesians did attack, has made a more active effort than has ever been made by the U.S. before to find a solution. Initially we attempted to float a proposal for a UN trusteeship under Malaya. When this failed to obtain support, we switched to a proposal for the establishment of a UN commission to investigate the problem and make recommendations. We had a series of talks with both the Indonesians and the [Page 467] Dutch. The result of those talks was to increase somewhat the apparent flexibility on both sides. However, neither side ever fully accepted our proposal.

It was never absolutely clear in these negotiations what true Dutch intentions might be. On the other hand, there were hints that their real purpose was to find a face-saving way to turn West New Guinea over to Indonesia. There is a significant body of opinion in The Netherlands that would favor, or at least accept, such a course. Foreign Minister Luns, on the other hand, has seemed intent to devise a formula that would keep West New Guinea out of Indonesian hands.

When the General Assembly convened this fall the Dutch introduced a resolution providing for the establishment of an interim UN administration to be followed by a self-determination plebiscite. This represented progress in the sense that it clearly provided for Dutch relinquishment of control. The Indonesians, however, were unwilling to accept more than a facade of self-determination. We resisted Dutch pressure to support their resolution, but stated that it represented an advance. We never indicated to the Dutch officially that we considered self-determination a meaningless facade when applied to stone-age people almost totally lacking in contact with the modern world.

Instead of supporting the Dutch proposal we launched a new version of our proposal for a UN commission to investigate the problem and make recommendations. The commission was to examine the possibilities of establishing an interim international administration. Various changes were made in the resolution to meet Dutch and Indonesian objections. The Brazzaville powers were finally persuaded to sponsor it. The Dutch finally went along with this resolution, but the Indonesians rejected it. The Indians also introduced a resolution reflecting the long-standing Indonesian position requesting bilateral talks between the Dutch and the Indonesians. The Brazzaville (U.S.) resolution was subsequently amended to call for such talks but to set a deadline of March 1 after which the UN commission would begin its work.

The U.S. decided to give full support to the Brazzaville resolution and to oppose all others. We were able to persuade the Dutch to withdraw their resolution, but the Indians would not withdraw theirs. The Brazzaville resolution was voted first. It was amended to delete a reference to self-determination, but failed to get the necessary two-thirds majority. We voted against the Indian resolution and it also failed to get a two-thirds majority. Thus, the net result of our many months of activity was not to produce the solution acceptable to both sides, which we had sought, but to vote against the Indonesians twice. Our vote on the Indian resolution represented a complete switch from our previous position of neutrality on such Indonesian-sponsored requests for bilateral talks.

[Page 468]

The moderate forces in Indonesia, led by General Nasution, pled with us not to align ourselves with the Dutch on the West New Guinea issue. Nasution has used all of his influence to restrain preparations for an attack on West New Guinea and to seek a negotiated solution. Though full reaction has not been obtained from Djakarta, and Sukarno was taking a relatively moderate line a few days prior to the vote, the reaction of the Indonesian delegation in New York (including the moderates in the delegation) has been bitterly anti-U.S. A news dispatch indicates that Sukarno has stated that the “present moment” was the proper time for liberation of West New Guinea. The Dutch meanwhile have apparently flaunted Indonesian feelings by further steps to create a West New Guinea government.

Conclusions and Recommendations

There is only one solution of the West New Guinea issue that will be permanent and that will remove it from Indonesian politics, and that is Indonesian control. Indonesian control is inevitable and is even, recognized to be so by reasonable Dutch such as the Dutch Ambassador to the U.S.

The Indonesians are going through a foreign exchange crisis. This fact may restrain them from attacking West New Guinea. On the other hand, it might drive them only further into Soviet hands for economic aid, while the Soviets support and encourage an attack upon West New Guinea. In any event, the pressures upon Nasution are going to mount until they become irresistible unless there is real hope of progress through negotiations. An attack could so preoccupy the army as to open new opportunities to the Communists in Indonesia. The fact that the attack was launched with Soviet aid and support will also markedly strengthen the Communist position.

On the other side, Luns may be in serious trouble in The Netherlands because of the failure of his policy. Pressures in The Netherlands for a negotiation may mount.

We have exhausted all of the possible variations on UN action for the present. The only hope for a settlement appears to lie in negotiations. We can improve the prospects for negotiations if we apply pressure to the Dutch. Luns has insisted that recognition of the principles of self-determination is a prior condition to any negotiations. We must apply pressure to get him to agree to eliminate that condition. It may be that a combination of Luns’ failure and our pressure could change the situation within the Dutch Government itself in a favorable direction. In this connection we surely should exploit such capital as we have developed with the Dutch by lining up with them in the UN.

The position of the Australians is central in the Secretary of State’s thinking. It was after a conversation with the Australian Ambassador [Page 469] that he decided we should switch from the role of intermediary to that of active sponsor of a resolution. The Australians must be made to see that it is in their long-term interests that this issue is resolved in such a way as not to risk the loss of Indonesia to Communism. Before they reverse their present pro-Dutch position on West New Guinea they may need further assurances from the Indonesians that the latter have no designs on Australian East New Guinea.

Pressure on the Dutch to undertake really serious negotiations will probably cause some temporary difficulties in our relations with them. But our experience in 1948–1949 when we were applying similar pressures in connection with the negotiations for Indonesian independence, as well as our other experience with such problems, indicates that the effects will not be long-lasting.

  1. Source: Kennedy Library, National Security Files, Countries Series, West New Guinea, 12/1/61–12/5/61. Secret. A note on the source text indicates this was part of the President’s weekend reading book for December 1.
  2. December 5. McGeorge Bundy wrote the following note in the margin at this point: “He may have done so this AM.” According to Rusk’s appointment book, he met the President at 10 a.m. on December 1. There was an NSC meeting on the Volta River Project on December 5, which both Kennedy and Rusk attended. (Johnson Library, Rusk Appointment Book; Kennedy Library, President’s Appointment Book) No record of the Rusk-Kennedy conversation has been found.
  3. Tab C was not attached.
  4. Printed from a copy that bears these typed initials.
  5. Secret.
  6. No record of this meeting has been found.
  7. See footnote 1, Document 204.
  8. Secret.