Office of the Historian

181. Telegram From the Embassy in Indonesia to the Department of State1

Djakarta, October 3, 1956—4 p.m.

851. Mytel 812.2 Yesterday in conversation at Foreign Office Mononutu3 to my astonishment displayed accurate detailed knowledge proposed $25,000,000 credit line as described Department’s limited distribution telegram 392,4 saying that his information came from Ismael, Deputy Chief Economic Section of Foreign Office. Bearing in mind injunction last paragraph Deptel 392 I was forced to take an equivocal position, reminding him of previous press articles regarding possible $35 million credit line and emphasizing that unofficial reports and rumors should be treated with great care lest misunderstanding arise between two governments. Mononutu seemed genuinely astonished that I did not, and apparently could not, confirm report given him by Ismael.

Today in trying to ferret out possible sources Ismael’s information I for first time came across Icato telegram 3195 which received Djakarta during my absence Sumatra.

Baird and I do not believe that there has been any leak Embassy or in USOM here but I believe it is immaterial whether there has been some perhaps inadvertent leak here or in Washington. Important fact is that Indonesians now apparently know what is in the wind. Accordingly, I am afraid that further to delay notification to Indonesian Government as recommended in mytel 812 could only lead to confusion and misunderstanding and perhaps into [garble] we [Page 310] have been trying to avoid, namely, the implications that our aid does have strings attached and is granted or withheld for purposes of political pressure (paragraph 3 mytel 812). Furthermore, Indonesian knowledge of our proposed action, even though it has not been confirmed to them officially, [weakens?] my hope that delay in informing Indonesian Government could perhaps serve as brake on Sukarno in Peking (penultimate paragraph mytel 812). I feel strongly, therefore, that we should not further delay in informing Prime Minister Ali.6

Cumming
  1. Source: Department of State, Central Files, 756D.5–MSP/10–356. Secret; Priority; Limited Distribution. Repeated by the Department to The Hague on October 4. (Ibid., 756D.5–MSP/10–456)↩
  2. Document 179.↩
  3. Arnold Mononutu, Chief of the American Division of the Indonesian Foreign Office.↩
  4. See footnote 2, Document 179.↩
  5. Icato 319 to Djakarta, September 15, authorized discussion with the Indonesian Government of the aid programs, totaling $11 million, tentatively authorized for fiscal year 1957. (Washington National Records Center, ICA Message Files: FRC 58 A 403, Box 25, Djakarta)↩
  6. Telegram 580 to Djakarta, October 12, informed the Embassy that the Department wanted to evaluate the results of Sukarno’s trip before taking any further action and that it was awaiting a determination regarding the availability of $10 million in fiscal year 1958 that was necessary before the $25 million program could be discussed. (Department of State, Central Files, 756D.5–MSP/10–356)↩