501.BC Indonesia/12–1448: Telegram
The Acting Secretary of State to the Consulate General at Batavia 1
659. Usgoc 244. Memo received Dec 14 from Neth Emb re shipment textiles to Repub stating in part:
“Govt Indonesia prepared cooperate with view implementing transaction. Govt Indonesia willing within limit regulations now in force and with right taking all supervisory measures deemed necessary to cooperate in order have these measures carried out smoothly and efficiently. This connection, inspection merchandise before loading steamer in US would be useful although would not preclude further inspection on arrival Indonesia. If at any time value merchandise exported from Repub controlled territories to US exceeds value merchandise imported from US, such excess will be allowed only if balance used exclusively for imports consumer and reconstruction goods. Balance to be deposited in bank selected mutually which as trustee will fully guarantee these funds will be used exclusively for imports Indonesia required consumer and reconstruction goods.” Memo then notes urgent need textiles and other articles Repub territories and [Page 567] reminds Repub [that] Govt Indonesia had been willing put stocks these articles its disposal without awaiting final agreement terms payment. Concludes with statement transactions this nature can be more quickly and easily conducted Batavia.
Copy memo handed Soemitro same day by Dept officer who quoted Neth Trade Commissioner as observing transaction should encounter no great difficulties since would be conducted under beneficent eye US.
No objection your informing Repub and colleagues GOC of above memo.
- Repeated as 632 to The Hague.↩