Foreign Relations of the United States, 1950, East Asia and the Pacific, Volume VI

756D.5 MAP/8–950: Telegram

The Ambassador in Indonesia (Cochran) to the Secretary of State

secret   priority

Djakarta, August 9, 1950—6 p. m.

188. (Section one of two)

Tomap. Hatta received me ninth discuss draft exchange of notes on provision constabulary equipment as mentioned Embtel 169.¹ He agreeable to accept following text of letter to him from me as I had drafted:

“I have the honor to refer to the program of military assistance in the form of constabulary equipment to be supplied by the United States of America to the Republic of the United States of Indonesia in the interest of improving and stabilizing conditions for the maintenance of law and order in Indonesia. Following our discussions it is my government’s understanding that this program will be carried out on the basis of a series of mutual undertakings specified in the exchange of notes of today’s date.

1. The Government of the United States of America records its understanding that the determining objective of the program of assistance is the enhancement of the welfare of the sovereign Indonesian nation and the preservation of its unimpaired and unqualified independence.

2. The United States of America and the Republic of the United States of Indonesia mutually undertake that such assistance as may be furnished by the United States of America to the Republic of the United States of Indonesia under this program shall be utilized solely for the maintenance of an effective constabulary and for the carrying out of the purposes of such a constabulary.

3. Such assistance as may be made available by the United States of America pursuant to this program will be furnished under such provisions of PL 329, 81st Congress, as amended, as affect the furnishing of such assistance and such other applicable United States laws as may hereafter come into effect. The two governments will, from time to time, negotiate detailed arrangements necessary to carry out the provisions of this paragraph.

4. Each government may take appropriate measures consistent with security to keep the public informed of operation under this program and will, at appropriate intervals, consult with the other on the measures to be employed to this end.

5. Each government will take such security measures as may be requested by the other to prevent disclosure or compromise of classified articles, services or information furnished by the other government pursuant to this program, and to this end will consult with the other as to the measure to be taken.

6. The two governments will, upon the request of either of them consult regarding any matter relating to the application of this program or to operations or arrangements carried out pursuant to this program.

7. Each government undertakes to receive within its territory such personnel of the other government as may be required to discharge the responsibilities of that other government under this program.

8. Such personnel will in their relations to the government of the country to which they are assigned, operate as part of the Embassy under direction and control of the chief of the diplomatic mission of the government which they are serving and enjoy the same privileges and immunities accorded comparable personnel of that Embassy.

9. It is understood that the Government of the Republic of the United States of Indonesia will make available to the Government of the United States of America rupiahs for the use of the latter government for its administration and operating expenditures within Indonesia in connection with assistance furnished by the Government of the United States of America to the Government of the Republic of the United States of Indonesia under this program.

10. The two governments will initiate forthwith discussion with a view to determining the amount of such rupiahs and agreeing upon arrangements for the furnishing of such rupiahs, taking into account the ability of the Government of the Republic of the United States of Indonesia to provide such currency.

11. These mutual undertakings shall enter into force upon today’s date and will continue in force until three months after the receipt by either party of written notice of the intention of the other party to terminate them.”

Hatta asked changes in three paragraphs my draft of reply which he should make. Draft acceptable to him would read:

“I have the honor to refer to your note number (blank) of (blank) dealing with the program of military assistance in the form of constabulary equipment to be supplied by the United States of America to the Republic of the United States of Indonesia in the interest of improving and stabilizing conditions for the maintenance of law and order in Indonesia. I confirm your government’s understanding that this program will be carried out on the basis of a series of mutual undertakings specified in the exchange of notes of today’s date.

(Section two of two)

1. The US of America and the Republic of the US of Indonesia mutually undertake that such assistance as may be furnished by the United States of America to the Republic of the US of Indonesia under this program shall be utilized solely for the maintenance of an effective constabulary and for the carrying out of the purposes of such a constabulary.

2. I note that such assistance as may be made available by the United States of America pursuant to this program will be furnished under such provisions of PL 329, 81st Congress, amended, as affect the furnishing of such assistance. The two governments will, from time to time, negotiate detailed arrangements necessary to carry out the provisions of this paragraph.

3. The Government of the Republic of the US of Indonesia undertakes to make effective use of assistance received pursuant to paragraph 2 above for the purposes for which such assistance is furnished, and my government will not, without prior consent of the Government of the United States of America, devote assistance so furnished to purposes other than those for which it is furnished.

4. The Government of the Republic of the United States of Indonesia undertakes not to transfer, without the prior consent of the Government of the United States of America, title to or possession of any equipment, material, or services which are received pursuant to paragraph 2 above, or which are substitutable for, or similar in category to the equipment, material, or services so received.

5. Each government may take appropriate measures consistent with security to keep the public informed of operations under this program and will, at appropriate intervals, consult with the other on the measures to be employed to this end.

6. Each government will take such security measures as may be requested by the other to prevent disclosure or compromise of classified articles, services or information furnished by the other government pursuant to this program, and to this end will consult with the other as to the measures to be taken.

7. The government of the Republic of the US of Indonesia will, except as otherwise agreed to, grant duty-free treatment and exemption from internal taxation upon importation to products, property, materials, or equipment imported into its territory in connection with this program.

8. The two governments will, upon the request of either of them, consult regarding any matter relating to the application of this program or to operations or arrangements carried out pursuant to this program.

9. The government of the Republic of the US of Indonesia will accord to duly authorized US representatives facilities freely and fully to observe the utilization of assistance furnished pursuant to this program.

10. Each government undertakes to receive within its territory such personnel of the other government as may be required to discharge the responsibilities of that other government under this program.

11. Such personnel will, in their relations to the government of the country to which they are assigned, operate as part of the Embassy under the direction and control of the chief of the diplomatic mission of the government which they are serving and will enjoy the same privileges and immunities accorded comparable personnel of that Embassy.

12. I confirm that the Government of the Republic of the US of Indonesia will make available to the Government of the US of America rupiahs for the use of the latter government for its administration and operating expenditures within Indonesia in connection with assistance furnished by the Government of the US of America to the Government of the Republic of the US of Indonesia under this program.

13. The two governments will initiate forthwith discussion with a view to determining the amount of such rupiahs and agreeing upon arrangements for the furnishing of such rupiahs, taking into account the ability of the Government of the Republic of the US of Indonesia to provide such currency.

14. These mutual undertakings shall enter into force upon today’s date and will continue in force until three months after the receipt by either party of written notice of the intention of the other party to terminate them.”

Points to which he took exception were to inclusion in paragraph 2 of his letter the phrase “and such other applicable US laws as may hereafter come into effect.” He was willing accept provisions PL 329 but felt he could not bind his government to future legislation of which unaware of. In paragraph 7 of my draft of his letter he eliminated words “or exportation” and “or exported from.” (Article 4 Deptel 84²). He is willing grant duty-free treatment and exemption from internal taxation upon imports, but said he found definition of “materials” so broad in Section 411 of PL 329 that to use above phrases could possibly subject almost entire export of Indonesian products to requirement existing export taxes thereon be lifted. Third point to which Hatta objected is covered in oral undertaking.

Hatta agreed to give me oral undertaking in following words:

“I undertake on behalf of my government not to sell war potential materials except for delivery in Indonesia and not to export war potential materials to any enemy of the United States of America, either directly or through intermediary countries or channels.”

Hatta found acceptable my proposed reply to his oral undertaking as follows:

“I have been instructed to reserve the right of my government to bring up this question should, for example, significant amounts of Indonesian petroleum material appear in any blockade enforced by the United States of America against one of its enemies.”

Hatta objected to the following paragraph (Article 5 Deptel 84) being incorporated in his written reply, arguing that this brought into the undertakings a trade matter which is entirely separate and on which US rights are taken care of by RTC agreement. This wording he would use exactly as presented to him however as a second part of oral undertaking:

“The Government of the Republic of the United States of Indonesia will cooperate by facilitating transfer to the US of America on reasonable terms, no less favorable than those provided to other countries or the nationals thereof, of materials in which the United States of America is actually or potentially deficient, giving due regard to the reasonable requirements of the Republic of the US of Indonesia for the domestic use and commercial export of such materials.”

Please instruct whether I am authorized conclude exchange in above terms.³

Cochran

1. Not printed; in it Cochran reported that he had redrafted the text of the proposed bilateral agreement with Indonesia to constitute an exchange of notes containing the amendments approved by the Department of State. (756D.5 MAP/8–750)
2. Not printed, but see footnotes 1 and 2 to telegram 112, July 26, pp. 1037 and 1038, respectively.
3. Cochran was informed in telegram 155, August 12, to Djakarta, not printed, that he should attempt to secure a written agreement covering the facilitation of transfer of items which the United States needed, and only if a written undertaking would jeopardize the whole mutual understanding should he accept an oral undertaking. With respect to the secret minute, Cochran was instructed that “Hatta’s undertaking considered deficient in that it relates too personally to Hatta,” and it should be made clearer that Hatta was binding his Government to take action. Finally, the Department of State “under the pressure of necessity” authorized the conclusion of the exchange in terms set out in this telegram, urging Cochran to do the utmost to elicit modifications by Hatta so the notes might “better express the intentions of our two Govts to their mutual advantage.” (756D.5 MAP/8–1250)