Foreign Relations of the United States, 1951, Asia and the Pacific, Volume VI, Part 1

411.56D31/3–2751: Telegram

The Secretary of State to the Embassy in Indonesia

confidential

Washington, March 27, 1951—6 p. m.

1042. Shld it prove necessary, in order conclude rubber contract, give Indos formal assurances US intentions re scarce supply commodities, you may, in ur discretion, give them formal note outlined Deptel 3815, Feb 15, to London, rptd Djakarta 863.¹

Gen price freeze US as well as export price reg which will be issued near future shld assure Indos price levels goods imported from US same as applicable US natls, plus of course customary export costs.

Above, together with Deptel 1028, Mar 26,² is maximum statement and procedure possible at this time meet conditions laid down by Indos (urtel 1320, Mar 27).³ Under circumstances no point discussing index nr mechanism.

Dept believes you shld ignore implied threat re Indo abstention from Rome Conf, unless in ur view this becomes serious possibility. In latter case, you may wish point out Indos their absence wld tend be blamed by all interested countries as killing Conf.

Although one experimental shipment recd, generality US industry and trade view problem importability Indo slab rubber as reported in Deptel 317, Sep 26, ’50 and Shohan memo conversation Sep 22 mtg with Indos and rubber industry.⁴

Acheson

1. In telegram 3815 to London, February 15, the Embassy was instructed to assure the Indonesian delegation to the London Rubber Conference that the United States intentions with regard to scarce supply commodities were to use maximum governmental authority to direct goods for civil consumption in order to implement pending Eximbank projects and to assist Indonesia in obtaining its basic civil consumer needs, subject to American defense requirements. (398.2395–LO/2–851) The Embassy never presented the contents of this note to the Indonesians, however, because Indonesia refused to participate at London in acceptable allocation schemes for scarce supply commodities.
2. In telegram 1028 to Djakarta, March 26, the Department recited all the instances in which the Department had helped Indonesia acquire consumer goods and instructed Ambassador Cochran to reiterate this data to the Indonesians in the course of the rubber discussions as evidence of American good faith in trying to meet their needs (456D.119/3–2651).
3. In telegram 1320 from Djakarta, March 27, Ambassador Cochran reported that Dr. Zain maintained that his departure for the impending Rome Rubber Conference was contingent upon the visit of General Wilson; that Dr. Zain was trying to create the impression that unless General Wilson arrived in Djakarta with definite assurances regarding the availability of manufactured goods desired by Indonesia, Indonesia might boycott the Rome conference (398.2395–R0/3–2751).
4. Neither printed.