411.56D31/4–251: Telegram

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

confidential
priority

1353. Rubber contract negotiations commenced this morning in conversations between Sumitro,1 Zain, Darmawan,2 Osmaoen,3 Wilson, Coerr and MacFadyen.4 After Indos had given usual parade of difficulties inherent for them in meeting US desires, cordial atmosphere was established and agreement reached that conversations wld be pursued on basis (1) US wld offer commitment that US Govt wld extend good offices to satisfy basic Indo civilian needs mfg goods (in accordance note authorized Deptel 1042, Mar 27). (2) Quantity price and other details of specific purchase contract wld be worked out mutually. (3) Indos wld also study possible methods whereby Indo Govt cld implement govt to govt contract.

Meeting this afternoon with Darmawan, Zain, Osmaoen and two Dutch technicians reached no conclusions. Indos were given informal draft US note as mentioned above and were asked to consider as starting point a contract to provide 200,000 tons in 18 months at 48 cents per pound. They spent whole session, however, reiterating general arguments which they had advanced at London.5 Discussions to be resumed tomorrow.

Cochran
  1. Dr. Sumitro Djojohadikusumo, Minister of Trade and Industry and a member of the PSI.
  2. Dr. Darmawan, Director-General of the Ministry of Trade and Industry.
  3. Member of the Ministry of Trade and Industry.
  4. An employee of GSA and a member of the rubber purchasing mission.
  5. The reference is to the London Rubber Conference.