460.56D9/10–551: Telegram
The Acting Secretary of State to the Embassy in Indonesia
422. Dept commends your efforts eliminate Indo strategic materials from Indo–Czech agreement. For guidance in possible future conversations fol observations made to supplement penultimate para Deptel 353 and to attempt answer Indo questions whether US not [Page 712] disposed excuse shipments of peacetime proportions and whether US fol same standards with England as Indonesia.
Generally US opposed any shipments strategic commodities to Soviet bloc countries. If Indo unable eliminate tin and rubber from Czech agreement Indo shld in fixing level of these exports give careful consideration possible implications Battle Bill, which provides fol criteria for justifying continuance of mil, econ or financial assistance to any country shipping “items primary strategic significance” to Russian satellite countries: (1) consideration contribution Indo to mutual security free world, (2) importance Indo assistance to US security, (3) strategic importance imports received from Soviet bloc, and (4) adequacy Indo controls over export to Soviet bloc of strategic items.
Dept believes Indo shld give particular attention item (3) above. Re this item several Eur countries have faced apparent necessity including strategic items in exports Soviet bloc countries under trade agreements negotiated with those countries. They have felt so obliged due their appraisal importance of items received in return as essential to basic econ and not available elsewhere. This substantially UK position re shipment rubber to USSR and this can be pointed out to Subardjo in response his concern re Brit shipments. Dept interested knowing what items Czechs able offer Indos which latter regard such importance to justify exporting strategic items to member Sov bloc. Even if Indos believe inclusion tin and rubber essential, no compelling reasons appear exist to ship in excess of exports in recent years. FYI this is substantially similar to our approach to Brit on like problem. Of course when Battle Bill becomes effective any shipments of primary strategic items wld require justification for exception under criteria enumerated above. Rubber and tin will certainly be among commodities affected by Battle Bill. Tin presently on International List II and rubber not on any International list.