Office of the Historian

611.56D/5–1451: Telegram

The Secretary of State to the Embassy in Indonesia

confidential
priority
niact
Washington, May 14, 1951—7 p. m.

1239. Indo Amb called on Sec May fourteenth to pay his respects before departing Djakarta. Sec told Ali that Dept had been seriously considering econ aspects Indo–US relations; that he hoped Ali wld emphasize to his Govt that US considers, in this connection, maintenance by Indo of historic pattern of trade matter of highest importance; that any departure from historic pattern of trade by Indo wld almost certainly be regarded by US public as evidence of desire on part of Indo to move in direction USSR and satellites at expense of its happy relations with US and its allies. Sec also asked Ali to emphasize to his Govt that, sporadic shortages in domestic products notwithstanding, US and its friends the proprietors of largest and most productive econ system in world and therefore able to supply those commodities which Indo requires. He pointed out that USSR and its satellites are in fact unable to meet Indo requirements and that if they were no asst wld be extended without strings attached. Sec took this occasion to point out that asst extended to Indo had been on a friendly basis and that we had not “attached strings” to that asst.

Referring to friendly character of relationship between Indo and US, which he hoped wld long continue, Sec pointed out that Zain’s statement on sale of rubber to any country unfortunate in substance and timing.

Indo Amb said he was already keenly aware of unhappy results of Zain’s statement in press and congressional circles and that it shld not be regarded as an Indo Govt decision.

Ali seemed quite willing to deliver Sec’s msgs to Indo Govt, expressed gratitude to Sec for his sympathetic understanding of Indo problems and assured Sec of his determination to make largest contribution to good relations between the two countries.

Sec. told Ali that he cld assure his Govt of latter’s good standing with Dept and of Sec’s desire that he, Ali, continue in Wash.

Sent to AmEmbassy Djakarta niact 1239; rptd info AmEmbassy London 5222.

Acheson