Office of the Historian

196. Telegram From the Department of State to the Embassy in the Netherlands1

Washington, December 5, 1956—6:12 p.m.

993. Your 840,2Deptel sent The Hague 977 rptd info Djakarta 905.3 Dutch Ambassador informed today US decision extend $15 million developmental assistance loan to Indonesia. Action placed in context existing US assistance programs and following points noted:

1)
Indo request under consideration since Sept 1955.
2)
No separate agreement required.
3)
US and Indo Govts agreed no publicity to loan until details worked out and projects determined.
4)
Projects contemplated will contribute to long range common objective of stable strong Indonesia friendly to West.

Van Roijen expressed appreciation for information and agreed strongly US Netherlands share common long range objective Indonesia. He said however US action would be viewed in Holland in context Indo repudiation RTC debts and that while no objection could be raised to US aid there was feeling US should also take Indos to task privately and in friendly manner when their behavior violated international standards. Sebald replied US had and would continue counsel Indos against intemperate and short sighted actions but that US ability intervene productively limited, and that intervention beyond these limits not only unproductive but also reduced US effectiveness in advising Indos on other matters.

[Page 332]

Van Roijen again expressed appreciation frank discussion background US decision and said he would inform his government of decision in this context.

Memo of Conversation4 being air pouched.

Dulles
  1. Source: Department of State, Central Files, 756D.5–MSP/11–2956. Secret. Repeated to Djakarta. Drafted in SPA and approved in FE.↩
  2. Telegram 840 from The Hague, November 29, urged that the Netherlands Government should be informed immediately of the decision to increase aid to Indonesia. (Ibid., 456D.5–MSP/11–2956)↩
  3. Telegram 977 to The Hague, December 3, reported that the Department would inform Ambassador Van Roijen. (Ibid., 756D.5–MSP/11–2956)↩
  4. A memorandum of the conversation between Sebald and Van Roijen, prepared by the Officer in Charge of Indonesia and Pacific Island Affairs, Francis T. Underhill, December 5, is not printed. (Ibid., 856D.10/12–556)↩