493.009/6–2151: Telegram

The Secretary of State to the Embassy in Indonesia

secret
priority
niact

1399. Palar today informed Amb Gross he has recd from Indo Govt list of strategic materials which Indo Govt considers subj UN embargo Commie Chi. Palar pointed out Indo list omits rubber.

As explanation this omission Palar (1) cited strong Indo public opinion blaming recent fall rubber price on UN embargo, (2) stated that Indo Govt thinks Cabinet might fall owing Commie and Leftist pressure if it were to embargo rubber Commie Chi, (3) declared that in actuality no Indo rubber is being or has been exported to Commie Chi.

Amb Gross emphasized strong adverse public reaction in US to Indo omission of rubber. He suggested that, since Indo in practice still adhering to historical pattern whereby no rubber going to Commie Chi, Indo Govt supplement its list with statement in its report to this effect, and add that Indo Govt will consult with AMC in event of any change.

[Page 680]

Palar said he wld not release Indo list until tomorrow morning New York time. Dept requests you urgently bring Amb Gross’ suggestion to attn Indo Govt and to attempt at your discretion to secure immed favorable modification Palar’s present instructions. You shld, of course, refer to highly unfavorable reaction which may be expected from US Cong and public if rubber not included Indo embargo.

Pending consideration by Indo Govt of Amb Gross’ suggestion Indo Govt might wish instruct Palar to defer filing of report. We are suggesting this evening to Dr. Ali that he telephone Palar to this end.1

Acheson
  1. Mr. Lacy telephoned Ambassador Sastroamidjojo at approximately 6:30 p. m. on the evening of June 21 to request that the Ambassador call Ambassador Palar to suggest that he defer the filing of the report with the United Nations until after he had received further instructions from Djakarta. Ambassador Sastroamidjojo agreed to place this call immediately. (493.56D9/6–2151)