Foreign Relations of the United States, 1969–1976, Volume E–12, Documents on East and Southeast Asia, 1973–1976

130. Memorandum From John J. Taylor of the National Security Council Staff to Secretary of State Kissinger, Washington, August 25, 1975.¹ ²

Washington, August 25, 1975

MEMORANDUM
NATIONAL SECURITY COUNCIL
ACTION

August 25, 1975

MEMORANDUM FOR SECRETARY KISSINGER
FROM: JOHN J. TAYLOR [JJT initialed]

SUBJECT: Directive to the Under Secretaries Committee on U.S.-Indonesian Joint Consultative Group

Prior to the meeting at Camp David on July 5, 1975 between President Suharto and President Ford, you instructed the U.S. side to come up with some sort of “joint venture” with the Indonesians. During the Presidential talks, Suharto first proposed setting up a “joint committee” to review equipment needs of the Indonesian Navy, Army, and Air Force. (Suharto may have been influenced by a paper given to the Indonesians by Guy Pauker, an Indonesian expert at the Rand Corporation. Pauker’s paper, which was not a very impressive job, consisted largely of a recommendation that the U.S. finance a $1 billion expansion of the Indonesian armed forces through FMS credit and that we set up a joint commission to decide what the money should buy.)

President Ford concurred in Suharto’s proposal and suggested setting up a “joint commission.” You also briefly discussed this subject with Foreign Minister Malik.

In context, it was clear that both sides assumed that the consultative group or groups to be formed would cover economic as well as military issues. Nevertheless, the discussion was such as to permit considerable latitude in structuring the desired mechanism. The Indonesians apparently do not yet have very firm ideas on the structures to be created or the subjects to be discussed.

An Indonesian military team is coming to Washington on September 15 to discuss the transfer of Indochina-extracted military equipment that President Ford referred to at Camp David. We had hoped that a joint committee could be established in time to deal with this question, but it seems unlikely that we will be organized in time.

State has been drafting option papers on the subject of a joint commission. But, to move the decision ahead and to bring in other concerned departments, we believe responsibility should be given to the Under Secretaries Committee. I have discussed this with State, and they agree.

At Tab A is a memorandum for the Chairman of the Under Secretaries Committee directing the Committee to prepare a position paper by September 10, 1975 on the organization of U.S.-Indonesian joint consultative machinery.

RECOMMENDATION:
That you sign the memorandum at Tab A.

Concurrence: Mr. Hormats

1. Source: Ford Library, NSC Institutional Files (H-Files), Box H–61, NSDM 311, U.S.-Indonesian Consultative Arrangements. Confidential. Sent for action. On the first page of the memorandum, Kissinger wrote, “Change date.” Kissinger also crossed out the due date on the second page. Next to Kissinger’s marginalia on the first page, an unknown hand wrote, “Done—Oct 6, 1975.” Tab A is attached but not published.
2. Taylor recommended that Kissinger direct the under Secretaries Committee to prepare a position paper on the organization of U.S.-Indonesian joint consultative machinery.