Foreign Relations of the United States, 1969–1976, Volume E–12, Documents on East and Southeast Asia, 1973–1976

110. Memorandum From the President’s Assistant for National Security Affairs (Kissinger) to President Nixon, Washington, undated.¹ ²

Washington, undated

MEMORANDUM
THE WHITE HOUSE
WASHINGTON

MEMORANDUM FOR: THE PRESIDENT
FROM: HENRY A. KISSINGER [HK initialed]

SUBJECT: Proposed NSSM on Indonesia

We have an urgent need for a NSSM study of our policy toward Indonesia.

We need to decide the rate at which we should shift away from concessional economic and military assistance to Indonesia. In the wake of Indonesia’s windfall oil revenues, there are major and growing pressures within our bureaucracy for a rapid termination of concessional assistance, particularly on the economic side. These are strengthened by Congressional pressures in this direction; most recently, Congressman Passman has begun an attack on grant military assistance to Indonesia.

Ambassador Newsom, in a recent comprehensive policy recommendation, has warned strongly against any precipitate end to our concessional assistance. He has argued that this would risk the major influence we have slowly built up with the Suharto Government, would undercut the position of the U.S.-oriented Indonesian technocrats, and would bolster nationalistic and chauvinistic tendencies in Indonesia. He believes we must move gradually.

A longer-range and even more basic problem is what stabilizing role we want Indonesia, as the major regional power in Southeast Asia, to play over the long haul. The working level in our bureaucracy has long argued that we should remain passive as regards a more active regional role for Indonesia. This approach is questionable, given our need for Indonesia to play a more active stabilizing role in light of the reduction of our own presence in Southeast Asia and of the long-term pressures for neutralization of this region.

In addition, this would be an appropriate juncture to review the only existing NSDM on Indonesia — that of 1971 on our then new military assistance program there. That NSDM prescribed a modest grant military assistance program designed largely to demonstrate our political support for the Suharto Government. It needs review.

At Tab A is a draft NSSM requesting such a study.

RECOMMENDATION:

That you approve my signing, in your name, the draft NSSM at Tab A.
Approve [HK initialed for RN]
Disapprove

1. Source: National Archives, Nixon Presidential Materials, NSC Institutional Files (H-Files), Box H–206, NSSMs, NSSM 205. Secret; Sensitive. Sent for action. Kissinger initialed the “approve” option on behalf of Nixon. The correspondence profile indicates that the document was sent to Kissinger on July 16 and that he approved it on July 20, 1974. The tab is attached, but the approved NSSM is Document 111.
2. Kissinger recommended that Nixon approve the issuance of a NSSM on U.S. policy toward Indonesia.