52. Memorandum From Secretary of State Rusk to President Johnson 1
- Status Report on Relations with Indonesia
I recommend, with the concurrence of Secretary McNamara and AID Administrator Bell, that you approve continuation of carefully selected economic and military assistance to Indonesia, of the types now being provided, as originally approved in NSAM 278 of February 3, 1964.2
The “Summit Meeting” of President Sukarno of Indonesia, Prime Minister Rahman of Malaysia, and President Macapagal of the Philippines took place in Tokyo recently. I believe the results represent limited progress and there is still a basis for further negotiation. The three heads of state agreed on a communique3 accepting in principle the designation of an “Afro-Asian Conciliation Commission” to assist the parties in resolving their differences. They also agreed to instruct their Foreign Ministers to continue to study the proposal for a conciliation commission with a view to a further meeting of the heads of Government.
Personal relations between Sukarno and the Tunku were poor at the conference and both returned home issuing angry statements. We are apprehensive that the guerrilla activity in Borneo may now increase again. Our efforts and those of President Macapagal continue to be directed to attempts to restrain violent speech and action. Our effort will be to keep the attention of Sukarno and the Tunku focused on the fact that there is an agreement which must be carried out, starting with a meeting of the Foreign Ministers.
- As you know, our limited programs of economic and MAP assistance with Indonesia have continued, in accordance with your decision recorded in NSAM 278 of February 3, 1964, pending the outcome of the “Summit Meeting.” In my judgment, concurred in by the Secretary of Defense and the Administrator of AID, it is essential to the national interest to continue carefully selected economic and military assistance to Indonesia of the types now being provided. We should not, however, make a formal public announcement of continued assistance for this might give unwarranted encouragement to President Sukarno. If you approve the above recommendation, we will routinely and confidentially notify the Congress of the current status of assistance to Indonesia, as required by Section 620 (j), without reference to a renewed Presidential decision.
- Source: Johnson Library, National Security File, Country File, Indonesia, Vol. IX. Secret. The Department of State copy of this memorandum indicates it was drafted by Cuthell with clearances from Bell and Poats (AID), William Bundy, Harriman, Solbert (DOD/ISA), McNamara, and Arthur Wexler (H). (National Archives and Records Administration, RG 59, Central Files 1964–66, AID (US) INDON)↩
- Document 29. There is no indication of the President’s approval, but see Document 53.↩
- The text of the communique is printed in American Foreign Policy: Current Documents, 1964, pp. 898–899.↩
- Attached but not printed was a detailed description entitled “Current Assistance Programs in Indonesia,” which had four tabs attached. Tab A was the proposed MAP and AID FY 1964 Program obligation, Tab B was reductions in FY 1964 MAP and AID program, Tab C was a pipeline trend of estimated unexpended balances of all obligations, and Tab D was an outline of the Food for Peace program in Indonesia.↩