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

142. Telegram 14947 From the Embassy in Indonesia to the Department of State, December 6, 1975, 1200Z.¹ ²

December 6, 1975, 1200Z

TELEGRAM
Department of State
JAKARTA 14947

0 061200Z DEC 75

FH AMEMBASSY JAKARTA
TO SECSTATE WASHDC IMMEDIATE 1582

JAKARTA 14947

DEPARTMENT PASS MANILA FOR THE SECRETARY

FOR S/S

EO 11652: GDS
TAGS: DVIP (KISSINGER)

SUBJ: MEETING WITH MALIK

1. FOLLOWING IS MEMCON OF CONVERSATION AT BREAKFAST IN JAKARTA DECEMBER 6. PRESENT WERE SECRETARY KISSINGER, FOREIGN MINISTER MALIK, MR SCOWCROFT, ASSISTANT SECRETARY HABIB, AMBASSADOR NEWSOM, DIRECTOR GENERAL POLITICAL AFFAIRS DJAJADININGRAT, AMBASSADOR ALATAS, AMBASSADOR RUSMIN AND DIRECTOR GENERAL ECONOMIC AFFAIRS ARIFIN. ONLY SUBSTANTIVE PORTIONS CONVERSATIONS INCLUDED.

2. MALIK-OUR FINANCIAL AND EQUIPMENT NEEDS, PARTICULARLY WITH THE PRESENT PROBLEM IN TIMOR, ARE VERY GREAT. WE WOULD LIKE TO SEE MORE ASSISTANCE FROM THE UNITED STATES.

3. KISSINGER-WE RECOGNIZE YOUR NEEDS, WE CONSIDER INDONESIA THE MOST IMPORTANT COUNTRY IN SOUTHEAST ASIA. THE ADMINISTRATION IS SEEKING TO GET MORE ASSISTANCE BUT WE WILL HAVE A DIFFICULT PROBLEM UNTIL AFTER THE ELECTIONS, WE ANTICIPATE THAT THERE WILL BE AT LEAST 45 OF THE NEW MEMBERS OF CONGRESS WHO CAME IN AFTER WATERGATE WHO WILL NOT BE REELECTED. IT IS VERY POSSIBLE THAT THE GENERAL OUTLOOK OF THE CONGRESS MAY, THEREFORE CHANGE.

4. I UNDERSTAND THAT WE HAD TO MAKE SOME CHANGES IN THE MILITARY ASSISTANCE PROGRAM AT THE LAST MINUTE. CONGRESS IS SHARPLY ANTI-COMMUNIST BUT THEY DON’T WANT TO FIGHT COMMUNISM. WE HAVE TRIED TO DO WHAT WE CAN IN THIS PRESENT SITUATION.

5. NEWSOM-I THINK IT SHOULD BE NOTED THAT EVEN THOUGH THE AMOUNT THAT WE ARE NOW PROVIDING ARE NOT AS LARGE AS INDONESIA WOULD LIKE, WE HAVE TURNED AROUND A TREND OF DECLINING AID. THERE IS A GREATER RECOGNITION OF INDONESIA’S NEEDS.

6. MALIK-I APPRECIATE THIS AND I RECENTLY RECEIVED A LETTER FROM THE AMBASSADOR GIVING ME THE DETAILS ON YOUR MILITARY ASSISTANCE PROGRAM.

7. KISSINGER-I CANNOT MAKE ANY PROMISES BUT I WILL LOOK AGAIN AT THE AID SITUATION.

8. I WOULD LIKE TO SAY JUST A WORD ON THE MOOD RELATIVE TO VOTE IN THE UN. I RECOGNIZE THAT INDONESIA BELONGS TO THE NON-ALIGNED GROUP AND THAT FREQUENTLY YOU WILL VOTE IN WAYS DIFFERENT THAN WE. I HAVE THE IMPRESSION, HOWEVER, THAT THE INDONESIAN DELEGATION IN NEW YORK IS NOT ALWAYS INSTRUCTED BY JAKARTA. FOR EXAMPLE, INDONESIA CO-SPONSORED A RECENT RESOLUTION ON GUAM WHICH IS DIRECTED AGAINST THE AMERICAN MILITARY PRESENCE ON GUAM.

9. MALIK (TO DJAJADININGRAT) - DID WE?

10. ALATAS-YES, IT LOCKED IT UP AND WE DID.

11. KISSINGER-WE WILL APPRECIATE YOUR SPECIAL ATTENTION TO THOSE RESOLUTIONS THAT HAVE SIGNIFICANCE FOR US.

12. ARIFIN-WHAT ARE THE POSSIBILITIES FOR THE PASSAGE OF THE AMENDMENT REMOVING THE RESTRICTIONS ON OPEC COUNTRIES FOR GENERALIZED PREFERENCES?

13. SCOWCR0FT-THE MEASURE HAS PASSED THE SENATE BUT IS STILL IN THE HOUSE.

14. KISSINGER-WE UNDERSTAND YOU INTEREST IN THIS BUT WE HAVE A REAL PROBLEM IN THE ATTITUDE IN THE CONGRESS TOWARD THE OPEC COUNTRIES. WE WILL KEEP TRYING TO GET THIS RESTRICTION REMOVED.

15. ARIFIN-WHAT DO YOU SEE COMING OUT OF THE INTERNATIONAL ECONOMIC CONFERENCE?

16. KISSINGER-WE SEE A USEFUL REVIEW OF PROBLEMS OF ENERGY AND THEIR RELATIONSHIP TO DEVELOPMENT. WE HAVE SOME CONSTRUCTIVE IDEAS WE HOPE TO PUT FORWARD. WE DON’T EXPECT A SETTLEMENT OF ALL THE PROBLEMS ON THIS CONFERENCE.

17. I SHOULD SAY, HOWEVER, THAT IF THE OIL PRICE CONTINUES TO RISE, THERE WILL BE TROUBLE. OUR ECONOMIES ARE BEING SERIOUSLY THREATENED. JAPAN HAS SUFFERED A $2 BILLION LOSS IN ITS BALANCE OF PAYMENTS. THE UNITED STATES HAS BEEN HIT AND WE HAVE THEN BEEN ASKED TO FINANCE A BALANCE OF PAYMENTS DEFICIT WE DIDN’T CAUSE. SUCH ACTIONS CAUSE A REAL CRISIS IN FOREIGN AID.

18. MALIK-CAN’T THERE BE AGREEMENT THAT IF THE DEVELOPED COUNTRIES PROMISE NOT TO INCREASE INFLATION, THE DEVELOPING COUNTRIES WOULD GUARANTEE NOT TO INCREASE PRICES?

19. KISSINGER-THAT IS INDEXATION AND WE DON’T’ FAVOR THAT SOLUTION.

20. MALIK-WHAT DO YOU INTEND TO DO ABOUT THE KOREAN RESOLUTIONS?

21. KISSINGER-IGNORE THEM.

22. MALIK-ARE YOU WILLING TO TALK TO NORTH KOREA?

23. KISSINGER-WE ARE WILLING TO TALK TO NORTH KOREA BUT NOT WITHOUT SOUTH KOREA. THE IDEA OF THE UNITED STATES DISCUSSING SOUTH KOREA WITHOUT SOUTH KOREA BEING PRESENT IS INSANE. IT WOULD DEMORALIZE SOUTH KOREA AND ACHIEVE NOTHING.

24. MALIK-WHAT DEVELOPMENTS DO YOU SEE WITH RESPECT TO TAIWAN?

25. KISSINGER-A RECENT REPORT OF AMERICAN INTENTIONS TOWARD TAIWAN WAS NONSENSE. IT CAME FROM A JAPANESE SOURCE. SOME JAPANESE HAVE A DREAM THAT THEY WILL HANDLE PEKING AND WE WILL HANDLE TAIWAN. EVENTUALLY THERE WILL BE A NORMALIZATION OF RELATIONS WITH THE PEOPLE’S REPUBLIC BUT NOT YET. THERE IS NO CHANGE IN OUR BASIC APPROACH OF A SLOW EVOLUTION TOWARD NORMAL RELATIONS.

26. DJADININGRAT-WHAT IS YOUR IMPRESSION OF CHINA’S OIL PROSPECTS?

27. MALIK-THIS IS BECOMING SOMETHING OF CONCERN TO US. WE HAVE LOST 16 PCT OF OUR JAPANESE MARKET BECAUSE OF CHINESE OIL.

28. KISSINGER-WE HAVE ENCOURAGED THE JAPANESE TO DECREASE THEIR IMPORTS FROM THE MIDDLE EAST, NOT FROM INDONESIA.

29. MALIK-WHAT IMPRESSION DID YOU GET OF THE CHINESE ATTITUDE TOWARD INDONESIA?

30. KISSINGER-THE CHINESE ARE DEFINITELY INTERESTED IN IMPROVING RELATIONS BUT CAN WAIT. THEY EXPRESSED GOODWILL TOWARD INDONESIA BUT DID NOT PRESS THE QUESTION. THEY ARE DEEPLY CONCERNED ABOUT THE SOVIETS AND HAVE A VERY LIMITED AFFECTION FOR THE VIETNAMESE. AS I TOLD THE CHINESE, THEY HAVE ACHIEVED AN IDEOLOGICAL VICTORY AND A GEOPOLITICAL DEFEAT. NEWSOM

NOTE: NOT PASSED MANILA FOR THE SECRETARY BY OC/T

1. Source: Ford Library, National Security Adviser, Presidential Country Files for East Asia and the Pacific, Box 6, Indonesia, State Department Telegrams to SECSTATE, NODIS (3). Secret; Immediate; Nodis. Kissinger and Malik met for breakfast before the 8:05 a.m. meeting between Kissinger and Suharto.
2. Newsom sent Washington an account of Kissinger’s breakfast meeting with Malik.