103–GSA/12–851: Telegram

The Ambassador in Indonesia (Cochran) to the Secretary of State

confidential

832. For Larson GSA from Wilson. Further meeting today Wilopo Min Econ and Djuanda Vice Chairman Cabinet Comite Fin and Econ with Ambassador on disputed items rubber contract. Wilopo restated [Page 747] contract wld be honored. Indicated govt plantation only produced 70 percent of contracted 1200 tons monthly in high grade rubbers and that they had been compelled buy additional high grade sheets in market to try fulfill contract amount. All points in dispute cleared except price. On this they hope give answer soon. We stood firm on nothing above market price. We urged they likewise dismiss price item since they understand August average prices are more favorable to them with record of declining market. They will finalize with Ambassador. [Wilson.]

Cochran