856D.13/5–851: Telegram
The Ambassador in Indonesia (Cochran) to the Secretary of State
1541. Embtel 1519, May 1. Director Kuipers of Foreign Exchange Institute told me night seventh he understood I had talked with Djuanda and Houwink over Indo plans for gold sales. I told him my exchange of views with Houwink had been very brief. Kuipers explained high earning power of rubber tappers and desirability getting some reserve of wealth in their hands to prevent their wasting their money on nonnecessities in absence adequate supply useful consumer goods. Kuipers added that gold to be used for this purpose was not bars purchased from US but sovereigns which have been property Indo for some time. I remarked that replenishment gold stocks wld presumably come from purchase bars from US while gold distributed to planters wld very likely get into hands of Chinese and into smuggling trade within few weeks.
Djuanda came by this morning. He said no decision yet taken on gold question. He said suggestion for instituting sales came from Neth advisors rather than from Indo ministers.