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

320.2–AC/5–2351: Telegram

The Secretary of State to the United States Mission at the United Nations

secret
priority

Washington, May 23, 1951—1 p. m.

942. 1. We appreciate fact that application of strategic embargo urtel 1551 May 18¹ may cause Indo certain difficulties. However, we are not convinced that in present state world commodity markets embargo on shipments strategic exports to Commie China will seriously affect Indo economy.

2. We fail to understand basis of Palar’s² comment that fall in rubber price has already cost Indo some $200,000,000. FYI detailed statement on rubber contained in Deptel 1268 May 18 to Djakarta being rptd USUN.

3. We sug USUN avoid detailed discussion technical trade and price data re rubber, referring Indos to Dept or US Emb Djakarta on such matters.

4. Under GA res of May 18, indo Govt will of course be expected to determine which of its export commodities fall within embargo and report thereon to AMC within 30 days. We think it is clear that rubber is covered by res as an item useful in production of arms, ammunition and implements of war and we are urging UK to take similar view. See Deptel 1272 to Djakarta May 21.³ Assume Indo will adopt similar position, particularly in light final para Djakarta’s 1601, May 16.⁴ After receiving reports from complying states, AMC may decide to work out list of items generally regarded as included in formula of May 18, res, in order that complying states may have more definite standards to guide them in their actions.

5. If Indo Govt believes itself seriously injured by application of embargoes adopted by GA, it cld appropriately report this fact to AMC. US wld oppose efforts by any country use AMC as forum appeal US aid to compensate for trade loss but wld not object multilateral discussion possibility exploring difficulties arising from damages caused by changes in patterns of trade owing to application of embargo.

6. Above for use with Palar in ur discretion.

Sent to USUN New York priority 942; rptd to AmEmbassy Djakarta niact 1278.

Acheson

1. Not printed.
2. Ambassador L. N. Palar, Official Representative of Indonesia at the United Nations.
3. In telegram 1272 to Djakarta, May 21, Ambassador Cochran was informed that Department of State officers had been making representations to officials of the United Kingdom in Washington to try to persuade their government to accept the U.S. position that rubber was a strategic material which fell within the terms of the United Nations resolution (493.009/5–2151).
4. In telegram 1601 from Djakarta, May 16, Ambassador Cochran informed the Department of State that Foreign Minister Subardjo said that Indonesia would abide by any decision the United Nations took on the embargo question, but that Ambassador Palar was being instructed to abstain from voting (856D.2395/5–1651).