207. Telegram From the Embassy in Indonesia to the Department of State1
5938. Subject: General Impressions of the Political Impact of Vice President Mondale’s Visit to Indonesia.
1. Summary: Vice President Mondale’s May 7–9 visit to Jakarta served to remove several long-standing bilateral irritants, reassured Indonesians of our continued interest in the area, and instilled an important personal element in our relationship. Our concern for further development of human rights in Indonesia was underscored without, however, creating backlash against us or human rights activists. All available evidence thus far suggests that this view is shared by the GOI leadership and by both the pro-government and oppositionist press. End Summary.
2. The Vice President’s party will be reporting on substantive matters undertaken during his May 7–9 visit to Indonesia. This cable is intended to provide my personal views of the general impact of the visit on our bilateral relationship, based on subsequent conversations with Indonesian leaders and on treatment of the visit in the Indonesian press.
[Page 702]3. The Vice President’s ability at the outset of the talks with Suharto to remove or substantially reduce several long-standing irritants in our bilateral relationship (the IRS tax issue,2 doubts over providing A–4s,3 and the LNG price escalation clause4) set a positive mood, which was steadily strengthened as the visit progressed. Minister of State Sudharmono, who is one of Suharto’s closest confidants, told me that the President was delighted with the meeting and with the number of problems that had been resolved. Virtually the same comment was made by another officer close to the President, Major General Benny Murdani.5 Local press reporting of the visit has stressed the IRS tax decision, agreement in principal to provide A–4s and the announcement of additional PL–480 rice, along with the Vice President’s remarks on release of detainees.
4. Judging from reactions we are receiving, the Vice President’s assurances of continued U.S. interest in the area were given added weight by the attention paid Suharto’s personal concern (shared by other top leaders) that some military modernization is necessary for Indonesia’s defense and for the morale of its forces. The response to the A–4 request was in particular helpful (although Indonesians are still worried over obtaining adequate funding for the project). The overall impact in this area was perhaps most dramatically signaled by the editorial turn-about of the government-controlled newspaper Suara Karya, which on the eve of the visit had complained bitterly that U.S. commercial interests in East Asia could not compensate for a reduced military presence and which captioned its post-visit editorial “Mondale Eliminates Doubt”.
5. The playback we have received from the Vice President’s comments on human rights and on the coffee meeting with non-official Indonesians (which had caused some prior consternation in official [Page 703] circles) has thus far been very good. Jusuf Wanandi, one of the two strong government supporters at the coffee meeting, expressed satisfaction with the give-and-take at the session and was undisturbed by oppositionist Buyung Nasution’s6 loud criticism of the GOI when press photographers were allowed in, which Wanandi described as self-defeating “grandstanding”. Nasution in telephone conversation with us today expressed appreciation for the meeting and apologized for some of his less moderate comments. Muslim oppositionist Imron Rosjadi told press that Americans “can still be relied upon to keep an open mind”, and this attitude was reflected in the oppositionist newspaper Pelita.
6. In view of the great importance President Suharto places on personal relationships, the most productive result of the visit in the long term may well be the warm personal element developed during the course of the talks. Sudharmono emphasized to me that the President had been impressed by the sincere interest and understanding shown by the Vice President in Indonesia and its problems. Ambassador to Washington Ashari also reported that the President had spoken warmly and favorably to him about his meeting with the Vice President. The concluding comments in Suara Karya’s editorial may sum up the overall GOI reaction to the visit: “Vice President Mondale arrived in an atmosphere of heartfelt anxiety; he departs leaving behind a basis to hope that America has not lost the characteristics which have made it great.”
- Source: Carter Library, Donated Historical Material, Mondale Papers, Foreign Trip Files, Box 130, [Vice President’s Trip to Asia, 4/29–5/10/78]: Indonesia—Diplomatic Trip Cables [2/14–5/23/78]. Secret; Immediate. Sent for information Immediate to Bangkok; sent for information to Canberra, Manila, and Wellington for the Vice President’s party.↩
- The IRS position on tax treatment applied to U.S. companies operating under oil production sharing contracts in Indonesia. More information is in telegram 10089 from Jakarta, July 29. (National Archives, RG 59, Central Foreign Policy File, D770272–0487) According to telegram 12972 from Bangkok, May 4, Mondale expected an update on the status of the IRS tax ruling. (National Archives, RG 59, Central Foreign Policy File, D780190–0563)↩
- See Document 206.↩
- Reference is to a December 1977 decision by the Department of Energy on importation of liquefied natural gas. More information is in telegram 311108 to Mexico City and Algiers, January 6. (National Archives, RG 59, Central Foreign Policy File, [no film number])↩
- A draft memorandum of conversation of the meeting between Suharto and Mondale is in Carter Library, Donated Historical Material, Mondale Papers, Overseas Assignments—Trip Files, 1977–1980, Box 21, Vice President’s Visit to the Pacific, 4/29/78–5/11/78: Indonesia Background. Telegram 6076 from Jakarta, May 10, summarized the major issues discussed. (National Archives, RG 59, Central Foreign Policy File, D780198–0490)↩
- Presumably Abdul Haris Nasution.↩