460.56D9/10–251: Telegram
The Ambassador in Indonesia (Cochran) to the Secretary of State
priority
513. Visited Djuanda evening 1st my request. Told him of my talks with Subardjo (Embtels 4991 and 5092) with particular reference desirability Indo terminating exports strategic materials to Sov bloc. Also summarized Wilopo’s complaints re US econ aid and my reply thereto.
I appealed to Djuanda as Vice Chairman Cabinet’s Financial and Econ Council to assist in orienting Indo trade policy in such fashion as to avoid Indo possibly incurring penalties under Kem Act or superseding legislation because exporting strategic materials to Commie bloc. Djuanda said trade agreements with Hungary, Poland and Czech had been routine arrangements, following old NEI trade lines, and that some provisions therein had been specifically inserted at request Neth Govt. He was of opinion Neth had requested Indo allocate tin to Czechoslovakia under Indo bilateral in order Neth itself might procure certain commodities in triangular trade and payments arrangements. Djuanda unofficially agreed that commodities obtained by Indo under three above-mentioned agreements are not vital and [Page 711] cld be obtained in large part from other countries. Most important item involved, he thought, was cheap motor cars being imported from Czechoslovakia.
I reviewed provisions Kem Act and endeavored anticipate Battle Act. I said Emb required report to Dept in present quarter with respect any export trade Indo with satellite countries. I said especially bad impression wld be created if report reveals fresh agreement Indo provide tin to Czechoslovakia. I did not, however, limit US concern to Czech agreement alone. Djuanda said he thought Czech agreement had already been signed but was sure it had not yet been approved by Cabinet. He promised look into matter, he being particularly interested in continuing receive US aid.
I mentioned to Djuanda receipt instruction (A–60 September 20)3 requesting Emb provide copies or full details current Indo trade agreements with satellite countries. Djuanda confirmed my understanding text such agreements not published in any Indo official journal or otherwise by Indo. I said I wld address note to FonMin requesting data. Djuanda promised if these not forthcoming he wld check over memo, which I wld prepare giving such data as I have or can procure, and point out and remedy any deficiencies therein.
Cabinet mtg postponed until morning Thursday fourth when Subardjo and members Indo del will report SF conference. I doubt if matter trade agreements will come up then or that this wld be propitious mtg for Djuanda to stress urgency ratifying ECA bilateral agreement and accepting trilateral agreement on counterpart funds, on which matters I talked with him urgently. I am convinced, however, he will do utmost to help with these questions well as endeavor elminate strategic materials from Czech agreement. While it has not been my intention or purpose to single out Czech agreement or let agreement with other satellite countries escape attention, I have of necessity pushed this case since Darmasetiawan raised question (Embtel 493) and since there appears opportunity still to block putting into force Czech agreement containing strategic materials.
- In telegram 499 from Djakarta, September 29, Ambassador Cochran reported that Foreign Minister Subardjo had expressed great appreciation for the Department’s assistance while he had been in the United States. The topics of conversation were the potential difficulties of getting the Indonesian Parliament to ratify the Japanese peace treaty, the desire of the United States to see the Indonesian Government suppress dissident elements inside the country and to embargo strategic materials to Communist states, and the wish of the Indonesians to solve the Netherlands New Guinea problem satisfactorily. (694.001/9–2951)↩
- Not printed, but see footnote 2, p. 713.↩
- Not printed.↩