400.009/6–1551: Telegram
The Secretary of State to the Embassy in Indonesia
1379. Deptel 1359 Jun 12. Sudarpo1 called on Lacy today primarily to discuss Kem Amendment. After discussion origin, objectives, and possible operation of Amendment Sudarpo in response direct question stated in his opinion RI will comply with certification requirements of Kem Amendment.
He clearly considers RI will take this action, as form of hedging in public relations, as necessary means build up Indo popularity in US in advance of potentially unpopular steps which RI plans take re redrafting agrarian legislation, renegotiation oil contracts, and revision current fon exchange privileges of petroleum cos in Indo, and completion nationalization Java Bank. Indo Govt realizes these measures, which it considers essential to natl welfare and in no sense Commie inspired, may nevertheless bring invidious criticism of Indo Govt as “socialist Govt sympathetic to communism.” In circumstances Sudarpo believes Indo Govt probably willing accept Kem Amendment procedures to demonstrate to US it is opposed to Commie imperialism.
With implied ref to RI’s existing trade agreements with satellite countries, Sudarpo expressed belief RI wld certainly certify under Kem Amendment if US Govt cld supply assurances RI wld be able purchase and receive manufactured goods necessary to successful Indo economy.
Sudarpo emphasized that in any event it is necessary all levels Indo Govt understand the purpose of Am Cong and of Exec Branch US Govt apropos Kem Amendment to deny war supplies to Commie countries and not to impose conditions with regard to econ and financial assistance originally offered by US to Indo with no polit strings attached.
Dept ready devote attn to “potentially unpopular” acts of Indo Govt as occasion arises. In meantime Dept considers it important every Emb Off with useful Indo contacts shld emphasize that purpose of Kem Amendment is as stated above.
It appears from Sudarpo conversation and recent Emb reports that Indo leaders becoming increasingly fearful Commie threat from within. Dept believes worthwhile consider possibility they ready take initial definite step, such as acceptance Kem certification procedure, toward US in inevitable choice between USSR and US. Such step might be facilitated by Emb presentation Kem Amendment in acceptable light.
- Sudarpo Sastrosatomo, Press Attaché of the Indonesian Embassy.↩