Situasi politik, ekonomi dan militer Indonesia, mingguan, Januari 1960 (Indonesia political affairs: weekly situation reports)

=== [PDF page 1] === Department of State INCOMING TELEGRAM SECRET Control: Rec'd: 30o Action DJAKARTA ' FROM: IRC Info INR 1642, DEPARTMENT OSDCONPHj. DEPARTMENT ARMY 16+2, CINCPAC PASS CINCPACFLT, COUSACRAPAC, CIA 352.o CINCUSRPAC, GbNCPACAF COMSEVENTHFLT, COMNAVPH, POUCH THE HAGUE, PARIS AND LOffDO NAVY AIR CINCPAC ALSO FOR RMR JOIN OLAD WEEKA NO. 1 FOR SANA DEPARTMENTS- RM POLIT I JANUARY 1, 8 AM SENT DEPARTMENT 1960 NEA ICA 121 JANUARY 1, 6:17 AM Se retary of State EUR ACTION COPY INDONESIA-CHICOM RELATIONS: CONFIDENTIAL BY RECONTINUING INDONESIAN DISPUTE WITH CHICOMS HIGHLIGHTED MINISTER FOREIGN CHICOM FROM CEIPT NEW LETTER DECEMBER 26 11 LETTER CHEN YI IN REPLY FOREIGN MINISTER SUBANDRIO DECEMBER YI PROPOSAL (WEEKA 51). LATEST LETTER REPEATED EARLIER CHEN DUAL PROMPT EXCHANGE RATIFICATIONS 1955 INDONESIA-CHICOM WISHING CHINESE OVERSEAS REPATRIATION AGREEMENT, ZENSHIP C TI yR TURN MAINLAND AND GUARANTEEING RIGHTS THOSE CHINESE WISHIN RTA. DJA AMBASSADOR CHICOM NAMED LETTER R MAIN IN INDONESIA. HANG CHEN CHEN AS CHIEF CHICOM REPRESENTATIVE AT PROPOSE t{AT MOST RESPOND. WOULD INDONESIANS STA.KS,"EAGERLY HOPED" v FEATURE LETTER WAS MILDER TONE, ABSENCE IMPERIOUS AND INSULTNGALLEGATIONS ANGUAGE EARLIER CHEN YI LETTER. WHILE REFUTING LE-E' SUBANDRIO 11 DECEMBER MADE CHINESE OVERSEAS G INST ION ACT AGAIN PROTEST AN RATHER GENTLY REJECTING SUBANDRIO OVERSEb CERTAIN ADMITTED CHEN 19), C COM DIPLOMATS (WEEKA CH I NESE UNLESS "UNCLASSIFIED" THIS FROM SECRET*REPRODUCTION IS PROHIBITED. _SECRETCOPY PERM ET PERMANENT RECORD COPY " This copy must be returned to RM/R central files with notation of action taken. === [PDF page 2] === SECRET -2- 1642, JANUARY 1, 8 AM FROM DJAKARTA CHINESE "DO NOT BEHAVE WELL", BLAMED FOREIGN NDONESIA-CHICOM TENSIONS. IMPERIALISTS FOR SUKARNO, SUBANDRIO, CABINET HOLDING SERIES MEETINGS DISCUSS ETTER, DETERMINE FORM AND TIMING REPLY. INITIAL NON-COMMUNIST FRESS REACTION STRONGLY UNFAVORABLE (SEE ITEM 7), CONSIDERABLE COMMENT ON FACT CHICOMS AGAIN RELEASED LETTER PEKING PRESS AND RADIO TWO DAYS BEFORE DELIVERY SUBANDRIO. IN GENERAL STATEMENT RELATIONS WITH CHICOMS AT YEAR-END NEWS AGENCY INTERVIEW, SUBANDRIO SAID HE FOUND CHICOM ATTITUDE TOWARD NEUTRALIST NATIONS "A PUZZLE", NOTED PEKING NOW BLASTING THOSE COUNTRIES WHOSE FOREIGN POLICIES FORMERLY SIMILAR TO THAT OF CPR ITSELF. ADMITTED NEW CHICOM ATTITUDE "NOT BENEFICIAL" BUT HOPED FOR RESTORATION BANDUNG SPIRIT. COMMENT: CONFIDENTIAL MILDER TONE LATEST CHICOM LETTER INDICATES,,CHICMSBEGINNING REALIZE RECENT HARSH TACTICS AGAINST INDONESIA,COUNTERPRODUCTIVE HAVE ROUSED INDONESIAN RESISTANCE RATHER THAN COWING THEM., CALL FOR SPEEDY ACTION IN EXCHANGE RATIFICAT-IONS'CITIZENSHIf AGREEMENT AND OPENING NEGOTIATIONS SUGGESTS CHICOM'ANXIETY'.RUSH INDONESIANS INTO CONFERENCE ROOM, GET DISPUTE OFF'CENTER'OF. STAGE.- INDONESIAN REACTION NOT YET DETERMINED, BUT FAIRLY GOOD CHANCE GOVERNMENT MAY ULTIMATELY ACCEPT URGENT CALL FOR NEGOTIATIONS, PERHAPS STALLING A BIT BY THROWING IN HARD-TO--SWALLOW CONDITIONS.- WOULD 3E DIFFICULT FOR GOVERNMENT ACCEPT NEGOTIATIONS TOO EAGERLY, AS I-E '.INGS AGAINST CHICOMS RUNNING HIGH AND ARMY ANGRY OVER RECENT BA:RAGE CHICOM INSULTS. JANUARY 1 DEADLINE FOR IMPLEMENTATION ALIEN RETAILER BAN MAY ALSO PROVOKE INCIDENTS, FURTHER MUDDY WATERS. POPE CASE: CONFIDENTIAL TRIAL OPENED DECEMBER 28 WITHOUT INCIDENT IN WELL GUARDED COURTROOM SECRET === [PDF page 3] === SECRET 16142., JANUARY 8 AM FROM DJAKARTA COURTROOM NEAR EMBASSY. PROSECUTION CHARGED POPE WITH REBELLION DEFENSE ATTORNEY AND HOMICIDE, FOR WHICH DEATH PENALTY POSSIBLE. COMPLAINED LACK OF TIME FOR PREPARATION, POINTED OUT OMISSION REFERENCE GENEVA CONVENTION, OTHER PERTINENT LAWS IN INDICTMENT. PROSECUTOR OBTAINED ADJOURNMENT UNTIL JANUARY 2 IN ORDER STUDY OBJECTIONS. LAWYER SELECTED BY POPE AS ASSOCIATE DEFENSE ATTORNEY WITHDREW FROM CASE DUE COURT REFUSAL APPOINT HIM, FAMILY OBJECTIONS HIS TAKING CASE OTHER BASIS. OFFERS CONTINUE HELP ON INFORMAL, UNPUBLICIZED BASIS. AFTER FLAGRANT DISTORTION IN PRE-TRIAL REPORTING OF CASE, COMMUNIST PRESS GIVEN "FINAL" WARNING BY AIR FORCE CONFINE SELVES FACTUAL COVERAGE, AIR FORCE WARNING, BACKED UP BY SIMILAR STATEMENT FROM ARMY, HAS TAKEN EDGE OFF PKI PRESS EXPLOITATION CASE, ALTHOUGH EDITORIAL COMMENT STILL VICIOUS. NON-COMMUNIST PRESS COVERAGE GENERALLY MODERATE (SEE ITEM 8). COMMENT: CONFIDENTIAL INDICATIONS TRIAL WILL BE LONG ONE, PROBABLY WELL OVER A MONTH. NO QUESTION POPE WILL BE FOUND GUILTY ON ALL OR MOST OF CHARGES. SPECULATION POSSIBLE SENTENCE RANGES FROM DEPORTATION TO DEATH PENALTY, WITH MAJORITY EXPECTING LONG PRISON TERM. FORMATION PEOPLE'S CONGRESS EXPECTED EARLY 1960: UNCLASSIFIED EXCLUSIVE ARTICLE PNI DAILY SULUH INDONESIA QUOTED RELIABLE SOURCES AS SAYING WILL BE 57 REGIONAL REPRESENTATIVES IN PEOPLE 2 CONGRESS (MPR). ADDED THAT PROVINCIAL LEGISLATURES HAD BEEN REQUESTED SUBMIT LISTS NOMINEES PRIOR DECEMBER 31 FOR APPOINTMENT$ 13Y PRESIDENT. MINISTER FOR GOVERNMENT-MPR RELATIONS RUMAMBI ANNOUNCED THAT GOVERNMENT PLANS 'NEW YEAR'S PRESENT" TO PEOPLE BY PROVIDING DETAILS MEMBERSHIP AND FORMATION MPR. MINISTER YAMIN, IN SPEECH CONCERNING NATIONAL PLANNING COUNCIL, NOTED THAT MPR SECRET === [PDF page 4] === SECRET .-- 1642, JANUARY 1, 8 AM FROM DJAKARTA THAT MPR WOULD BE CONSTITUTED EARLY 1960. COMMENT: LIMITED OFFICIAL USE MPR. GOVERNMENT APPARENTLY MOVING AHEAD WITH PLANS CREATE 258 MEMBERS ABOUT CONSIST WILL CONGRESS ESTIMATES EMBASSY AT LEAST 202 PARLIAMENT PLUS 57 REGIONAL REPRESENTATIVES AND MEMBERSHIP, I. FOR QUALIFICATIONS FUNCTIONAL REPRESENTATIVES. MANIFESTO, POLITICAL E., SUPPORT RETURN 1945 CONSTITUTION AND THAN RUBBER MORE LITTLE PROBABLY WILL ET CETERA, INDICATE BODY INITIALLY. LEAST POLICIES, GOVERNMENT FOR STAMP VIEWS OF NU CHIEF ON POLITICAL SITUATION: SECRET IDHAM IN DECEMBER 24 CONVERSATION WITH AMBASSADOR, NU HEAD SUKARNO SAID SITUATION. POLITICAL INTERNAL CHALID GAVE VIEWS IN PRESIFREQUENTLY SOUGHT HIS ADVICE, AND NU REPLACING PKI TOP DENT'S KITCHEN CABINET. CHALID CONFIDENT NU WILL EMERGE PLANS, BASED CONFIDENCE 1961. HELD ELECTIONS PARTY PLANS, ALREADY WORKED OUT WITH NASUTION, TO TAMP DOWN PKI. CURBING GRADUAL ENVISAGE TACTICS, "UNFAIR" ADMITTEDLY INVOLVING ACTIPKI ACTIVITIES NEXT TWO YEARS; THEN LIMITING PKI ELECTION DELAY PLAY. FREE GIVEN PARTIES VITIES WHILE NON-COMMUNIST MIND WITH CHANGE SUKARNO RISK RUNS 1961 PAST ELECTIONS CONSEQUENT ALTERATION BALANCE POWER. SUKARNO, CHALID SAID PNI CHAIRMAN SUWIRJO, IN RECENT MEETING WITH NU AND SAID GOVERNMENT, PRESENT PATRONAGE COMPLAINED RE LACK DESCRIBED CHALID PNI. NOT BUT PATRONAGE, WITHOUT EXIST COULD PKI INDICATION SUKARNO'S POSITION VIS-A-VIS PKI AS SOMEWHAT STRANGE, PLACONTINUED HIS BELIEVE METHODS. PKI AWARENESS HIS LACK OF HIS CITED BRIDGES, BURNING CATION PKI STEMMED FROM OLD FEAR OF EXAMPLE FRONT ISLAM FORMATION TOWARD ALARM OVER RECENT MOVES HIS CONTINUING FEAR MOSLEMS WOULD UNITE AGAINST HIM AND AS REASON WHY FEARS CUT SELF OFF FROM PKI. RE REBELLION SECRET === [PDF page 5] === SECRET 1, 8 AM FROM DJAKARTA RE REBELLION, CHALID REVEALED SJAFRUDDIN IN RECENT LETTER SAID THERE WOULD BE NO DIFFICULTY REACHING ACCOMODATION NU TOOK OVER GOVERNMENT. IF CHALID AND CHALID SAW NO IMMEDIATE LIKELIHOOD SUCH EVENT- NOTED POSITIONS BOTH SIDES STILL TOO STIFF FOR COMPROMISE AS LONG AS PRESENT CABINET IN OFFICE. MENTIONED POSSIBILITY CABINET RESHUFFLE, INCLUDING NU PARTICIPATION, ABOUT TIME PROJECTED SUKARNO AFRICAN TRIP IN APRIL. NO CHANCE PKI INCLUSION. NASUTION AND HE AGREED: AS LONG AS THEY COULD PREVENT IT, NO COMMUNIST WOULD ENTER CABINET. NEW POLICE CHIEF NAMED: UNCLASSIFIED SUKARNO DJOJONEGORO SWORN IN AS NEW POLICE CHIEF AND MINISTER PALACE ANNOUNCEMENT STRESSED THIS EX OFFICIJ DECEMBER 31. APPOINTMENT PERMANENT NOT TEMPORARY. P-3 RI CONGRESS AT SOLO (WEEKA 52) ENDED DECEMBER 26. AT OPENING SESSION DECEMBER 23, DJUANDA CALLED FOR POLICE ADJUSTMENT TO 1945 CONSTITUTION AND SPIRIT POLITICAL MANIFESTO. APPEALED FOR COOL HEAD RE SUKANTO DISMISSAL, PRAISED HIS RECORD NASUTION FOLLOWED BUT NOTED HE HAD REVEALED SHORT--COMINGS. DJUANDA, ECHOING SAME SENTIMENTS AND CONDEMNING FACTIONALISM. CONGRESS LATER PASSED RESOLUTION APPROVING SUKANTO DISMISSAL AND PLEDGING SUPPORT OF GOVERNMENT. COMMENT: OFFICIAL USE ONLY SUKANTO PERMANENTLY OUT AND ON SURFACE AFFAIR APPEARS CLOSED. 6. REGIONAL GOVERNMENT REORGANIZATION: OFFICIAL USE ONLY GOVERNMENT CONTINUING MOVE SLOWLY IN NAMING PROVINCIAL GOVERNORS UNDER DECREE NO. 6 REORGANIZATION (WEEKA 50). TWO MORE GOVERNORS APPOINT-ED FINAL SECRET === [PDF page 6] === SECRET -6- 1612, JANUARY 1, 8 AM FROM DJAKARTA APPOINTED FINAL WEEK DECEMBER, TO WEST SUMATRA AND DJAMBI, BOTH NONCONTROVERSIAL REAPPOINTMENTS INCUMBENTS. REGIONAL LEGISLATURES CENTRAL JAVA, NORTH SUMATRA, DJAKARTA STILL IN PROCESS SELECTING REPLACEMENTS LATE FOR NOMINEES REJECTED BY CENTRAL GOVERNMENT. WEST JAVA LEGISLATURE DECEMBER 29 TOOK DEFIANT STEP OF RENOMINATING ALL FOUR CANDIDATES PREVIOUSLY REJECTED BY CENTRAL GOVERNMENT, URGING PROMPT APPOINTMENT GOVERNOR FROM AMONG THE FOUR. COMMENT: CONFIDENTIAL GOVERNMENT LESS INTERESTED IN PROMPT FILLING GOVERNORSHIPS THAN IN CAREFUL SIFTING CANDIDATES TO INSURE APPOINTEE LOYAL TO CENTER. WEST JAVA LEGISLATURE ACTION PROBABLY FUTILE GESTURE, LIKELY ANTAGONIZE DJAKARTA CENTER TO APPOINTMENT GOVERNOR WITHOUT FURTHER CONSIDERATION LEGISLATURE WISHES. PSYCHOLOGICAL CHINESE ISSUE: UNCLASSIFIED NON-COMMUNIST PRESS CRITICAL LATEST CHICOM NOTE TO SUBANDRIO. MERDEKA SAID ALIEN TRADER ISSUE MUST BE SETTLED PRIOR TO DUAL NATIONALITY ISSUE, NOTED THAT TWO MATTERS NOT RELATED AS CHICOMS CLAIM. OBSERVER AGREED, BELIEVED EVACUATION, DUAL NATIONALITY ISSUES SUITABLE SUBJECTS NEGOTIATION, BUT NOT ALIEN TRADERS ISSUES SINCE LATTER PURELY DOMESTIC MATTER. EXPRESSED FURTHER IRRITATION AT FACT REPLY MADE PUBLIC BY CHICOMS PRIOR DELIVERY SUBANDRIO. NUSANTARA CALLED FOR INDONESIA TO SET CONDITIONS FOR NEGOTIATIONS, INCLUDING REFUSAL ACCEPT HUANG CHEN AS CHICOM REPRESENTATIVE. COMMUNIST HARlAN RAKJAT SAW NO OBSTACLE SETTLEMENT PROBLEM IN CONTEXT BANDUNG SPIRIT. 8. POPE CASE: UNCLASSIFIED TRIAL OPENING SECRET === [PDF page 7] === SECRET 1642, JANUARY 1, 8 AM FROM DJAKARTA TRIAL OPENING RECEIVED HEAVY PLAY ALL PAPERS, SOME EDITORIAL COMMENT. REPORTAGE NON-COMMUNIST PRESS GENERALLY FACTUAL AND OBJECTIVE. COMMUNIST HARIAN RAKJAT CALLED POPE MASS MURDERER DESE-R VING SEVERE PUNISHMENT, CARRIED CARTOON PORTRAYING POPE AS ARROGANT BEFORE JUDGE. NU DUTA MASJARAKAT IN EDITORIAL ALSO CALLED POPE MURDERER, ASKED FOR "RIGHT PUNISHMENT" AND "PROPER" "SPEEDY" TRIAL. PAPER ALSO SUPPORTED OFFICIAL WARNING THAT TRIAL SHOULD NOT BE USED FOR AGITATION BY CERTAIN GROUPS. COMMENT: OFFICIAL USE ONLY INTERESTING THAT TRIAL POSTPONEMENT UNTIL JANUARY 2 DID NOT ELICIT CRITICAL COMMENT. OFFICIAL WARNING, BEHIND SECENES PRESSURE BY MILITARY, MAY SERVE TO KEEP COMMUNIST PRESS FAIRLY WELL IN LINE ON TRIAL. ARMY VISIT TO EAST INDONESIA: CONFIDENTIAL AARMA VISITED SOUTH SULAWESI AND AMBON DURING PERIOD NOVEMBER 27 TO DECEMBER 18. REBEL SITUATION EAST INDONESIA IMPROVED BUT STILL SERIOUS IN NORTH SULAWESI, LARGE AREAS SW SULA-. WESI NOW OPEN AS RESULT SURRENDER BAHAR MATTALIU AND KAHAR MUANG FORCES. GOI EXPERIENCING DIFFICULTY RETURNING BAHAR AMATTALIU'S MEN TO VILLAGES DUR UNWILLINGNESS VILLAGERS HAVE EX--DI'S RETURN Cr TO AREAS WHERE THEY FORMERLY OPERATED. THESE EX-DI'S NOW ASSIST, ING GOI IN REHABILITATION PROJECTS ON ROADS AND AGRICULTURE. KAHAR MUANG'S TROOPS SURRENDER ACCEPTED BY GOI WITH PROVISION THEY RETAIN ARMS TEMPORARILY AND FIGHT REBELS SOUTHEAST OF MAKASSAR. CURRENT REBEL SITUATION SOUTH SULAWESI: KAHAR MUZAKKAR AND TWO AND ONE-HALF BNS 8o PERCENT ARMED REPORTED VICINITY SIWA AND HIGH GROUND NORTHWEST OF SIWA; TWO COMPANIES PERMESTA, TOTAL STRENGTH 250 MEN, 80 PERCENT ARMED AND 2 BNS DI/TIl, TOTAL STRENGTH 1,000 MEN, 30 PERCENT ARMED REPORTED SOUTHWEST SLOPES LUMPOBATANG SECRET === [PDF page 8] === SECRET -8- 1642, JANUARY 1, 8 AM FROM DJAKARTA FREE OF REBEL LUMPOBATANG MOUNTAINS. OTHER AREAS RELATIVELY 8 INFANTRY BNS. SULAWESI SOUTH STRENGTH COMBATS TNI ACTION, INDONESIAN ARMY FIELD PERMESTA IN NORTH SULAWESI NOW REPORTED BY UNKNOWN) 1 90 PERCENT ARMED. INTELLIGENCE TO BE 21 BNS (STRENGTH REORGANIZE ATTEMPTING AND WAR GUERRILLA PERMESTA HAS REVERTED TNI COMBAT STRENGTH 1959. OCTOBER KOTAMOBAGU FALL FOLLOWING THIS AREA REPORTED TO BE 11 INFANTRY BNS. 250 TROOPS, OTHER PERMESTA STRENGTH REPORTED TO BE; MOROTAI, ARMED. RMS PERCENT 80 TROOPS, 250 HALMAHERA, 80 PERCENT ARMED; TNI STRENGTH ARMED. STRENGTH ON CERAM IS 250 TROOPS, 30 PERCENT BNS. CERAM AND BNS IN AMBON REPORTED AT 2 COMMENT: CONFIDENTIAL WITH CIVILIANS SITUATION IN SOUTH SULAWESI APPEARS TO BE UNEASY TNI DETACHMENTS WHEN AREAS SLOWING MOVING BACK TO RECENTLY CLEARED FIELD AND COMMUNICATION REHABILITATION ARE IN AREA. TASK AND RAPIDLY AGRICULTURE IS VAST. GOI FAILURE IMPROVE SITUATION RENEWED RESULT COULD PURSUITS RETURN EX-DI'S USEFUL CIVILIAN REBEL FLAREUP IN AREAS NOW RELATIVELY QUIET. 10. SECURITY SITUATION: SUMATRA; CONFIDENTIAL DETERIORATING WITH RECENT REPORTS FROM ATJEH INDICATES SITUATION REPORTED CUTFORCES GOI NUMEROUS STEPPED UP REBEL ACTIVITY. AIR. SUPPLIED OFF AND SUMATRAUNCLASSIFIED REBEL COLONEL GINTINGS, NORTH SUMATRA COMMANDER ESTIMATES OF NORTH PERCENT 50 MEN. 2,000-3,000 STRENGTH CONSISTING SECRET === [PDF page 9] === SECRET -9- 1642, JANUARY 1, 8 AM, FROM DJAKARTA "AUGUST 17 COMMAND" SUMATRA STILL CONSIDERED "OPERATIONAL AREA". DURING OPERATIONS WOUNDED OTHER 40 AND KILLED REBELS 209 REPORTS 7-10. DECEMBER FROM IN PADANG-PARIAMAN REGENCY KAL IMANTAN: UNCLASSIFIED RECENTLY IN KALIMATAN 28 MEMBERS OF IBNU HADJARSS GANG SURRENDERED GOI SURRENDER. WANT ALSO STATING OTHER MEMBERS OF THE GANG AND WOUNDED 35 CAPTURED, 40 KILLED, REBELS ANNOUNCED 50 PERMESTA NEWS 14-19. DECEMBER 28 SURRENDERED IN SULAWESI DURING WEEK RELEASED FOR JAVA DURING THIS PERIOD. COMMENT: UNCLASSIFIED REBELS IN NEWS REPORTS INDICATE STEPPED UP GOI ACTIONS AGAINST SUMATRA. NAVY 11. PROCUREMENT OF MERSHIPS: UNCLASSIFIED AND FOREIGN PRESIDENT, JUNIOR MINISTER OF SEA COMMUNICATIONS, PROCUREMENT CONCERNING 28 DECEMBER CONFERENCE MINISTER HELD SHIPPING TO BOLSTER MERCHANT 53,000 ADDITIONAL TONS MERCHANT BY 21 JAPANESE SHIPYARDS. SUBMITTED SO FAR, TENDERS MARINE. BE MADE IN JANUARY 1960. PROBABLY WILL SUPPLYING DECISION THREE OF 10,000 TONS; FOLLOWING: SHIPS REQUIRED INCLUDE THE SIX OF 600; AND ONE TONS; 1,500 TWO TONS; THREE OF.5,000 COASTER EACH OF 800 AND 600. 12. NCOFS PRESENTED.'ITH ITALIAN DECORATION: UNCLASSIFIED SECRET === [PDF page 10] === SECRET -10- 1642, JANUARY 1, 8 AM, FROM DJAKARTA COMMO MARTADINATA DECEMBER 214 WAS PRESENTED WITH "COMMENDATORE" MEDAL OFTHE ITALIAN ORDER OF KNIGHTHOOD "TO THE MERIT OF THE REPUBLIC OF ITALY", BY ITALIAN AMBASSADOR. ORDER WAS PRESENTED RELAAS TOKEN APPRECIATION FOR STRENGTHENING INDONESIAN-ITALIAN INDONESIAN BUILDING TIONS WHEN MARTADINATA WAS SUPERVISING IN ANOTHER CEREMONY ON DECEMBER WARSHIPS IN ITALIAN SHIPYARDS, 29, LIEUTENANT COLONEL D. B. TAURAN ALSO RECEIVED AN ITALIAN DECORATION FOR SIMILAR SERVICES. AIR 13. GARUDA AIRCRAFT CRASHES: UNCLASSIFIED LOCAL PRESS REPORTED CRASH OF GARUDA DAKOTA DC-3 CARRYING 31 PASSENGERS IN SWAMP THREE MILES FROM TALANG BETUTU AIRFIELD, PALEMBANG, SHORTLY AFTER TAKEOFF AFTERNOON DECEMBER 24. PILOT FATALITIES KILLED, CO-PILOT SERIOUSLY INJURED, NO OTHER INVESEXTENSIVE ALTHOUGH REPORTED NOT SERIOUS INJURIES. CAUSE COMMUNICATIONS AIR MINISTER JUNIOR HEADED WAY, UNDER TIGATION COMMODORE ISKANDAR. COMMENT: UNCLASSIFIED INDONESIANS. THIS FIRST FATAL ACCIDENT SINCE GARUDA TAKEN OVER 1BY AIRA NOTES FROM PERSONAL EXPERIENCE THAT GARUDA C- 7#S HEAVILY LOADED ON ALL FLIGHTS. JONES VHD:ALB NOTE: PASSED CINCPACFLT, CINCUSARPAC, CINCPACAF, COMTDC, COUSACRAPAC, COMSEVENTHFLT, COMNAVPHIL. 1/1/60 Note: pouched by DC/T. SECRET === [PDF page 11] === Department of State INCOMING TELEGRAM ACTION COPY SECRET 46 Control: 4254 Action Rec'd: FROM:!Djakarta CRC Info INR Secretary of State 1725, January 7, January 8, 2: 49 p.m. 1.960 EJR DEPARTMENT POICH THE HAGUE, * SIA CIA RPAC.,AfN AC DEPARTMENT PASS CINCPACFLT, C NO X' CINC COMTDC, COUSACRAPAC, COMSEVENTHFLT & NAV OSD 372. ARMY AVY . AIR CINCPAC ALSO FOR POLAD JOINT WEEK NUMBER 2-FOR SANA DEPART NTS RMR NOW' POLITICAL CONFIDENTIAL Indonesian-CHICOM relations: Latest stage Indonesia1. CHICOM dispute over treatment Overseas Chinese marked by series talks between Foreign Minister Subandrio and CHICOM Ambassador Huang Chen, with growing indications CHICOMs beginning back down earlier extreme position. After twohour meeting with Huang December 31, Subandrio told Ambassador Jones that Huang had suggested fresh start, indicated CHICOMs ready accept Indonesian decisions on internal policies, appealed for removal restrictions movements CHICOM Embassy personnel; Subandrio said he replied that authoritarian states found it easy switch approach a but more difficult in democracies due aroused public opinion. After second meeting January 6, Subandrio announced to press that some progress made, Huang had Further study. for proposals" "constructive offered meeting scheduled next week. Clearing atmosphere > - demonstrated at year-end Palace garden party, where Sukarno went out of way be pleasant to Huang, seatetdr himself next to Huang, opened festivities by dancin with ng' s UNLESS "UNCLASSIFIED" SECRET PERMANENT nota with filgs central RM/R returned must copy This COPY RECORD AUCTION FROM THIS ac ion taken. === [PDF page 12] === SECRET -2- 1725, January 7, 7 p.m., from Djakarta, Huang's wife. With alien retailer ban ostensibly in effect from January 1, Distribution Minister Leimena announced January 4 that government had not authorized postponement nor modified its provisions. Had left details implementation to local war administrators, however, with no time limit complete implementation but orders finish job soonest. War administrators most provinces announced no delay implementation, but West Kalimantan administrator granted two-month postponement certain areas in view unreadiness local cooperatives take over retail shops. Indications that ban being effected slowly, numerous Chinese still in business although ostensibly replaced by Nationals. East Java war administration has declared province closed to all aliens seeking establish residence, retroactive to December 14, in move forestall influx rural Chinese retailers other areas. CONFIDENTIAL Comment: Subandrio suggested to Ambassador that evident CHICOM desire call off dispute due their apxiety-reestablish cordial atmosphere before scheduedoprushchev visit. May also reflect CHICOM realizatipp earlier tactics failed force Indonesians knuckle under, only'fqpsible'course now to retreat temporarily, accept faitkgpmp1,wa.t for further opportunity get back at Indnesfans. Opportunity may come if continuing implementagfon retailer bai-further strains Indonesian economy, increasesyyulnerability internal and external economic pressure, SECRET 2. Indonesian army approach to Taiwan: Special _AT.istant to General Nasution asked assistance ARMA in getting GRC to issue statement recognizing Indonesian actions against Overseas Chinese as purely internal matter, offering accept Chinese wishing repatriation Taiwan. Hoped statement could be issued in connection scheduled January 9 departure group Chinese leaving Indonesia for Taiwan. In separate move, army has informed Embassy that S. T. Hsieh, TIMES stringer jailed SECRET === [PDF page 13] === SECRET -3- 1725, January 7, 7 p.m., from Djakarta. jailed over year as KMT agent;, to be released near future, expected go Taiwan to represent interests pro-KMT Chinese in Indonesia. SECRET Comment: Doubtful that government aware request to ARMA, although presumably known to top army leadership. While prospect GRC issuing statement to aid Indonesians in moves against Overseas Chinese probably remote, fact that Indonesian army willing request help from formerly detested KMT indicative radical revision views caused by dispute with CHICOMs. Although GRC still officially anathema to Indonesians, notable moderation in attitude apparent since start CHICOM dispute. CONFIDENTIAL At January 2 session defense attorney Pope case: cited arguments both for and against applicability Geneva Convention to case., Judge ruled against. In subsequent sessions Pope admitted flying unarmed B-26 from Clark Field, which he identified as United States-Filipino military airbase also servicing private carriers, to Menado, from which he claimed to have made only one flight, that on which shot down. Radioman captured with Pope testified January 7 he flew with Pope in raid on Kedari in April 1958, contradicting Pope claim only one combat flight. In early testimony, Pope accused Indonesian Air Force officers and prosecutor of tampering with pretrial interrogation record which he refused sign. Judge did not press him on identity rebel contact men. Mentioned other white men at Menado, one of whom he knew, but judge again did not press for identity. Identified rebel Colonel Muharto and Hadi Supandi as commanders PermesmAir Force operations, said both had flown with Asked why joined him on most of his non-combat flights. rebels, Pope firmly said "I've been fighting Communists since I was 22 years old (in Korea and Vietnam)... World Press described rebellion in Indonesia as anti-Communist'. Defense attorney timid, passive, but Pope largely conducting own defense with vigor and adroitness, judge giving him every opportunity question witnesses, in whose testimony he exposed several contradictions, Further Pope advantage SECRET === [PDF page 14] === SECRET -4- 1725, January 7, is incompetence prosecution. from Djakarta. Small crowd gathers each day hear loudspeaker transmission proceedings nearby park. Public generally apathetic, no incidents. UNCLASSIFIED 4. Nasution speech: ACS Nasution spoke to foreign press reception in his honor January 5 reiterating previous assertions that army non-political but noting with favor army entry into legislative and administrative field as selfless functional group. Cited with approval Sukarno's Lauded 1945 criticism past Indonesian abuses democracy. constitution, political manifesto for creating true Indonesian style democracy. OFFICIAL USE ONLY Comment: Contents speech unexceptional but significant as for public statement support Sukarno concepts at time latter increasingly subject criticism. Tends refute rumors SukarnoNasution policy rift. UNCLASSIFIED Sukarno to visit Africa in 1960: First Minister Djuanda told Parliament January 4 Sukarno planning visit newlyindependent African states 1960, including Ghana. Complete Said that Finance Department itinerary not yet determined. will try keep trip expenses at minimum by cutting nonessentials. CONFIDENTIAL Comment: Date Sukarno departure not yet announced but Djuanda promise keep expenses generally expected mid-April. down presumably result widespread but cautious criticism cost 1959 Sukarno Latin American junket. OFFICIAL USE ONLY 6. Khrushchev, other foreign VIPs, to visit Indonesia: Date for Khrushchev visit set February 18 to March 2. According SECRET === [PDF page 15] === SECRET -5- 1725, January 7, 7 p.m., from Djakarta. According Djuanda January 4 statement Parliament, following additional VIPs scheduled visit country in 1960: Singapore Premier Lee Kuan Yew, January 19-26; Thai King and Queen, February 8-16; Nasser; Brazil President Kubitschek; Philippine President Garcia; Indian Chief Staff Thimmaya. Dates last four not yet set. CONFIDENTIAL Comment: Timing Khrushchev visit, two-week duration, may be calculated in part to exploit Indonesian pique at being omitted from Eisenhower South Asian visit. Considerable local speculation Khrushchev may utilize visit mediate current Indonesian-CHICOM dispute and that visit evidence Soviet neutrality in dispute. CONFIDENTIAL Subandrio likes Seventh Fleet: During current five-day unofficial visit Admiral Radford, Foreign Minister Subandrio January 6 told him he privately most appreciative presence United States Seventh Fleet Asian waters, that Indonesia Said would be among first to covertly protest its removal. United States should not always consider Indonesian public posture as representing real views leadership, that much necessarily said or left unsaid to placate public opinion and maintain independent foreign policy. Noted United StatesIndonesian views identical, only approach differed. CONFIDENTIAL Comment: While Subandrio tends tell visitors what they hope to hear, little doubt large segments Indonesian leadership comforted by Seventh Fleet shield, particularly since revelation CHICOM aggressiveness. UNCLASSIFIED Parliament reopened; Subandrio on foreign policy "retooling": SECRET === [PDF page 16] === SECRET -"6- 1725, January 7, 7 p.m., from Djakarta. "retooling": Third 1959-1960 session Parliament opened January 4. Session to be devoted new government tax regulations, supplementary 1959 budget and 1960 budget. Discussing Foreign Department budget with Foreign Affairs Committee January 5, Subandrio said government to continue active independent policy with principle difference that country can now have "subject policy" rather than being object policies other countries. Noted that Foreign Department in process "retooling" under 1945 constitution and political manifesto, re-indoctrination overseas personnel. Under new "subject policy", he added, will be less emphasis Europe, more attention capable representative southeast Asia and far east. UNCLASSIFIED Visit of United States Secretary Brucker: Army Secretary Brucker paid one-day visit to Djakarta January 2, called on Sukarno, First Minister Djuanda, Foreign Minister Subandrio, Defense Minister Nasution, Junior Defense Minister Hidajat. UNCLASSIFIED 10. Sukarno entertains friendship societies: President Sukarno held garden party December 30 for officials all Indonesian-foreign friendship societies (mostly Communist, including Russian zone German). Lembaga Amerika official attended. CONFIDENTIAL Comment: Incident significant only in light rumors army plans ban all such friendship groups. Sukarno action seems designed discourage such move. CONFIDENTIAL 11. Starr case: Starr, Broce doing one month solitary confinement for attack on Embassy officer (WEEKA 52). Nevertheless managed smuggle out obscene letter received by Mrs. Jones threatening life of Ambassador. Milder note from SECRET === [PDF page 17] === SECRET Djakarta. -7- 1725, January 7, 7 p.m., from from Broce enclosed with CONFIDENTIAL dangerously insane. Ambassador Comment: Seems clear Starr December 30 but no firm Subandrio discussed case with decision best way settle PSYCHOLOGICAL UNCLASSIFIED announcement visit given 12. Khrushchev visit: Official press, although only moderate play in non-Communist headlines. Favorable prominent Communist papers gave it papers. BITANG TIMUR editorial comment by all Communist comments that visit diplomat, called Khrushchev traveling and furthering tensions will contribute easing international added that Khrushchev world; peace in Asia and throughout differing from EisenhoWer visit will have- no other motive, justify visit atmosphere who needs suitable will strengthen peace visit PERMUDA said that country. throughout world. imperialism against frontand struggle after visit that confidence HARlAN FADJAR expressed for peace to desire Indonesia's present Khrushchev will expressed NUSANTARA Anti-Communist Summit Conference. in urging succeeded has Aidit leader PKI opinion that improvepresent store Khrushchev to advance hisavis unfaorale osiionPKI andsrestorerrelationsvbetweenn Indonesia and CHICOMs. OFFICIAL USE.ONLY all papers to easehtensions Comment: Visit expected by Krushe probably Indonesia. and China Communist between more by press will be portrayed more and peace. agent and troubleshooter UNCLASSIFIED play Pope trial continuing get prominent 13. Pope case: Noncomment. editorial in press, many pictures but little Communist SECRET === [PDF page 18] === SECRET -8- 1725, January 7, 7 p.m., from Djakarta. Communist coverage unbiased but full of errors. Communist press twisting some testimony, suppressing some, adding some fictitious details. Only HARIAN RAKJAT carried comments condemning Pope and United States. OFFICIAL USE ONLY Comment: Leftist papers have not openly violated air force order hold comment to minimum and confine selves report factual account, attempting evade it by "errors" in factual coverage. UNCLASSIFIED 14. Price increases: Announcement year-end price increases, especially gasoline, caused all papers left and right to criticize government. Editorial comment without exception lamented increased heavy burden on populace. OFFICIAL USE ONLY Comment: Interesting that foreign-owned oil companies have escaped specific criticism, with all complaints aimed at government. So far none aimed directly at Sukarno. UNCLASSIFIED All Djakarta papers carried stories, Brucker visit: 15. pictures of Army Secretary Brucker during brief visit Only HARIAN RAKJAT related visit to here (see item 9). Pope trial, noting that since trial started two high United States military officials have visited Indonesia, Brucker and Admiral Radford. ARMY CONFIDENTIAL Brucker visit: During talk with Defense Minister 16. ACS Nasution, Secretary Brucker extended invitation visit United States preferably April to June 1960. Nasution appeared SECRET y === [PDF page 19] === SECRET -9- 1725, January 7, 7 p.m., from Djakarta. appeared honored but indicated may be impossible leave Indonesia during first half 1960 due unsolved political problems and possible absence President Sukarno from country at same time. Nasution indicated he expected present government to remain in power three to five years or until elections can be held without fear, admitted army influence in government probably will continue increase but that no danger military dictatorship. Nasution feels that since President Sukarno has no strong political party to carry out GOI program, army must be capable carrying out that function. NAVY UNCLASSIFIED Navy to assign two Navy supervision own shipping: 17. naval officers to act as supervisors at each Indonesian shipping company, including National Company Pelni. This in framework stricter measures in shipping field. UNCLASSIFIED 18. New Djakarta maritime commander: Colonel Rais Sastrosugondo, commandant Djakarta maritime area for past three years, replaced by Major D. M. Mursalim. Colonel Rais retiring on pension. UNCLASSIFIED 19. Navy resignation: Lieutenant Colonel D. B. Tauran, ex-personal assistant to Commodore, submitted resignation from navy. To be employed by CALTEX shortly. Tauran was with Commodore in Italy and only last week received an Italian decoration in appreciation his services while in Italy. UNCLASSIFIED Commodore stated to Parliament that 20. Naval Attaches: navy has plans for stationing Naval Attaches in Philippines, Japan, SECRET === [PDF page 20] === SECRET -10- 1725, January 7, 7 p.m., from Djakarta. Japan, and Red China. This in addition to present Naval Attaches in United States, Britain, India and Singapore/ Malaya., AIR Negative. JONES MGG:ARL/9 NOTE: Passed CINCPACFLT, CINCUSARPAC, CINCPACAF, COMTDC, COUSACRA PAC, COMSEVENTHFLT, COMNAVPHIL, CINCPAC POLAD, 1-8-60, 7 p.m., GWL. POUCHED BY DC/T. SECRFA === [PDF page 21] === Department of State iNCOMING TELEGRAM CONFIDENTIAL 38 Action IRC Info FROM: Djakarta INR EUR Secretary of State 1833, ICA USIA OC B CIA OSD ARMY NAVY AIR RMR F ACTION COPY anuary 14, SENT DEPARTMENT 1833, EKA NO. POLITI January 15 6:12 a.m. 1960 CINCPAC 393 DEPARTMENT POUCH THE HAGUE, JOINT 8539 PASS CINCPACFLT, CINCUSARPAC, COMSEVENTHFLT, COMNAVPHIL CINCPAC ALSO FOR POLAD Control: Rec'd: O CPAC PARISA-ND LON OR SANA DEPARTME S FR CONFIDENTIAL Political Impact Economic Situation: Mounting indications that continuing economic decline of increasing political significance. Devaluation rumors continue and caused. near panic in Surabaya week-end January 9. Price increases, notably petroleum products, subject of numerous petitions, resolutions, editorials. Current parliamentary debate on government budget provoking almost unbroken line critical speeches on government Persistent rumors of early Cabinet changes, ecnomic measures. government failure satisfy material needs idea with linked often people. One political leader advances theory that Parliamentdll reject government budget, thus precipitating crisis about Feb Jrry ' USE ONLY OFFICIAL Political Parties Restricted: Long-awaited decree No. 7 regulating political party s CONFI IissuedALREP CONFIDENTIAL_ PERMANENT UTION FROM EHIS COPY IS RECORD COPY e This copy must be returned to RM/R central files with notation of OHIBITED. tion taken. === [PDF page 22] === CONFIDENTIAL 1833, January 14, issued January 12. from Djakarta Requires parties have branches one-fourth provinces and second-level regions, accept principles Pantja Sila and political manifesto in order qualify government recognition. Bans foreign members and receipt foreign aid. President given wide powers investigate party finances and assets, dissolve party after perfunctory consultation Supreme Court party opposes "principles and goals of State" or fails condemn party leaders who have aided rebels. Only parties existing prior July 1959 eligible recognition. Decree linked to relaxation martial law by promise of future meeting to determine extent martial law can be modified in secure areas. Information Minister Maladi said January 13 that labor and social,;groups affiliated parties also fall under decree, implied parties still have opportunity adjust status to avoid dissolution. First party reaction from NU head Idham Chalid, who termed decree "reasonable", dismissed dissolution threat by noting "every clean-up effort involves sacrifice". OFFICIAL USE ONLY Comment: Decree follows anticipated lines (WEEKA 52)'although more harsh toward Masjumi (which has not yet condemned leaders when joined rebels) and somewhat easier on PKI than expected. Major parties will have no trouble meeting geographical;requirements, but number minor parties likely be substantially reduced. PKI may have trouble with ban of foreign funds if government investigative power energetically used; may benefit, howeve'r,,if decree, followed by relaxation martial law in secureareas where PKI strong. Masjumi in most serious dilemma: Must denounce still-popular pro-rebel leaders or face threat of dissolution. CONFIDENTIAL Pope Trial: All 17 prosecution witnesses heard, trial adjourned January 12 until CONFIDENTIAL === [PDF page 23] === CONFIDENTIAL 1833, January 14, from Djakarta until January 16 enable Pope prepare required comments on testiPrior adjournment, court heard further vague contradictory mony. Little evidence produced directly tying prosecution testimony. Pope to raids other than one in which shot down May 18, 1958 although radio operator testified he believed Pope flew April 29 Kendari raid. Prosecutor visibly worried by muddle into which trial developed. Defense lawyer quiet, not well prepared, but inaptitude perhaps exceeded by that of prosecution. Pope remains own best lawyer, on occasion assuming role "impartial" court expert on B-26 and flying generally. Court remains generous in giving Pope all possible rights under Indonesian law. No large crowds or demonstrations. Before January 12 session "death to Pope" signs smeared over walls in vicinity court but removed well before trial opened. Security precautions continue extensive and thor.ough. Since defense plans call no witnesses, prosecutors summary next order of business after Pope's comment. Two week delay usual for this but possibly may come sooner. CONFIDENTIAL Comment: Embassy believes all charges except those involving May 18 and April 29 attacks may be dropped, sentence may be neighborhood 20 years. Pope undecided whether appeal trial or request Presidential clemency. Defense lawyer councils latter. OFFICIAL USE ONLY Indonesia -- CHICOM Relations: After meeting with CHICOM Amb.assador January 11, Foreign Mini date target 20 January Subandrio announced agreement, exchange ratifications..1 55 Indonesia-CHICOM citizenship agregamnt. rep Later same day departed on five-day tour West Java Chinese praise 13, January Bandung speech centers. settlement military CONFIDENTIAL === [PDF page 24] === CONFIDENTIAL 1833, January 14, 6 p.m., from Djakarta military handling evacuations rural Chinese, said other provinces would "automatically" follow suit if West Java evacuations successful. In report to Subandrio at same meeting, West Java Commander Colonel Kosasih strongly criticized CHICOM meddling evacuations, noted over 11,000 aliens resettled in cities of whom 90. percent Chinese. Foreign Department earlier announced receipt two CHICOM notes protesting anti-Chinese wall slogans various cities and further incidents mistreatment Chinese. Minor stone-throwing incident reported Semarang, few Chinese shops damaged. Scattered reports indicate upsurge Chinese interest return mainland in recent weeks, less interest obtaining Indonesian citizenship. Decree No. 10 banning alien retailers rural areas in effect since January 1 but indications being implemented gradually many areas due inability national businessmen and cooperatives take over. CONFIDENTIAL Comment: CHICOM readiness implement citizenship agreement after earlier prolonged stalling further evidence CHICOMs retreating on overseas Chinese dispute. While CHICOM decision perhaps influenced by desire improve climate for forthcoming Khrushchev visit, forestall possible emergence Khrushchev as mediator, major factor appears be inability coerce Indonesians into changing policy toward resident Chinese without resort more drastic steps further alienating rest of-Asia. Although dispute simmering down, may flare up again if West Java style evacuations repeated other provinces. Notable that, while army has privately expressed ultimate intention evacuating Chinese all rural areas, Subandrio January 13 statement first public mention this. possibility by top military or civilian leader. UNCLASSIFIED CONFIDENTIAL Formation === [PDF page 25] === CONF IDENTIAL January 14, from Djakarta 1833, Formation of People's Congress: Presidential Decree No. 12 of January 12 outlined organization temporary People's Congress (WEEKA 1). Membership, in addition Parliament, to include 94 regional representatives; 200 functional Requirements for membership same as for Parliament representatives. plus acceptance 1945 constitution, political manifesto and loyalty meeting. No date set for appointments or for first to Republic. years. three Tenure to be less than CONFIDENTIAL Comment: Since army to have 45 seats and Parliament to comprise almost body. half membership, Sukarno cannot expect completely subservient vague issuance limited probably will Congress Nevertheless, pronouncements, unlikely to attempt change or question recent and allies spate Presidential decrees. Communist representatives membership. total probably about twenty percent CONFIDENTIAL National Front Announced: Presidential regulation on formation national front announced Goals listed as consummation resolution, just-January 12. deprosperous society, and struggle regain West Irian. Front scribed as vertical, mass organization based on guided democracy, Leaders to be appointed with political manifesto as program. from people "enjoying popular confidence". Organization first consists Central Board chaired by Sukarno plus boards at Finances to come from government ai and second level regions. Maladi stated Janua registration, subscription and donations. orga 13 front is "national movement", not state party, open to individuals. zations as well CONFIDENTIAL CONF IDENTIAL === [PDF page 26] === CONFIDENTIAL 1833, January 14, from Djakarta CONFIDENTIAL Comment: Although regulation in general terms, front emerges more clearly as mass organization led by Sukarno, supported by government money, and possible rival to political parties. Regulations on party simplification and People's Congress, issued same day, make no reference to front. now seems superfluous. DormantWest Irian liberation front OFFICIAL USE ONLY Central War Administration Takes Shape: January 8 Sukarno presided first meeting Central War Administration assistance body established by Presidential Decree December 16 re Meeting discussed powers Central War Adminstate of emergency. istration and security situation, set up ad hoc committee to propose composition War Administration staff and draft government regulation thereon. Committee, composed Djuanda, Nasution, Hidajat, and Chief of Air, Navy and Police, met January 12. Djuanda later told press committee tasks completed and recommendations sent to President. Second meeting assistance body scheduled January 16 to consider recommendations and review security situation to determine status regions under new state of emergency regulation. OFFICIAL USE ONLY Comment: Next to Sukarno, Nasution remains central figure War Administration. assistance body and, in view time-consuming activities President, Responsibility for advising Presiwill likely wield authority. dent on crucial issues, however, now more widely shared. CONFIDENTIAL CONFIDENTIAL Sukarno === [PDF page 27] === CONFIDENTIAL January 14, from Djakarta 1833, Sukarno on Capitalism, Peace: In speech to PKI-dominated Students Peace Committee January thinking" Sukarno hit hard at "intellectualism and text-book in university circles, need for greater attention socialist as "source" teachings' called on peace movement fight capitalism movement peace effect statement Sukarno colonialism. war and urging wyqqris* movement welcome not Communistic undoubtedly intended maybe however movement, participation greater Moslem there. break Communist monopoly Sukarno put In speech to National Planning Council January 9, diatribes against forth other foot, spoke without histrionics or guidelines imperialism and capitalism. Set down series general exclusive at" for NPC to follow in future work. Warned against need for overtention economic and financial matters; emphasized social farming, all plan touching education, industrialization, culture. and distribution population security, and military in socialist Speech recognized "private enterprise" has place vital introduction limits, narrow within Indonesia, though government remain should commodities; distribution, however, "private hands. Questionable whether Sukarno's interpretation enterprise" coincides with ours. OFFICIAL USE ONLY Disagreement with Malaya over Captured Rebels: off Penang, subseCapture of 30 Sumatran PRRI rebels by Malayans Indonesians sparked quent refusal Malayan Government turn them over for "unMalayans criticism editorial press headlines, widespread treaty. friendly attitude" despite absence extradition CONFIDENTIAL Comment: not hiappy Foreign Department source said privately that government Lumpur,unKuala Charge Indonesian demand over precipitate diplomatic press statements. Blamed actions his inexperience, hoped CONFIDENTIAL === [PDF page 28] === CONFIDENTIAL 1833, January 14, 6 p.m., from Djakarta hoped return Ambassador Razak to Malaya January 8 would provide chance work things out quietly. Admitted no legal grounds request extradition but hoped something could be arranged. UNCLASSIFIED 10. Hungary Donates SOBSI Badges: Press reports Hungarian "trade unions" donated 800,000 badges to Communist-controlled SOBSI Trade Union Federation. CONFIDENTIAL Comment: New party simplification law (see item 2) required parties list Police official told affiliates, prohibits subsidy from abroad. Embassy officer SOBSI intends sell badges to members for rupiahs 10 each. UNCLASSIFIED Omani Mission Leaves: Two-man Omani Mission (see WEEKA 52) left Indonesia January 12. During visit, as guest AA Solidarity Council, visited several cities in Java, met various national leaders including Sukarno, While Communist press gave Omanis extensive play, other papers President singled out Oman in recent also gave good coverage. Palace speech as example remaining colonial vestiage. CONFIDENTIAL Comment: Undoubtedly few more Indonesians now know of existence Oman and fact "colonial" dispute there. Should problem ever be raised in international body, e.g., UN, Indonesian vote presumably will be pro-Omani rebels. PSYCHOLOGICAL CONFIDENTIAL === [PDF page 29] === CONFIDENTIAL 1833, January 14, from Djakarta PSYCHOLOGICAL UNCLASSIFIED 12. Political Parties Regulation: Editorial comment non-Communist papers generally favorable, with Pro-Communist only ABADI saying requires further clarification. press generally reserved with only HARIAN FADJAR openly critical otyace three. UNCLASSIFIED Sukarno Before NPC: Heavy press play given Sukarno address before National Planning Editorial comment non-Communist press Council (see item 8). No comment from Communists. hopeful but skeptical of plan. OFFICIAL USE ONLY Comment: Indonesian press, people beginning resemble man from Missouri when comes to development plans. UNCLASSIFIED 14. BINTANG TIMUR Suspension: Pro-Communist BINTANG TIMUR suspended January 8 for giving misleading banner headline to remarks by General Nasution at foreign "Democracy hps ended correspondents meeting January 6, reading: and replaced by militarism". Suspension lifted January 12.' OFFICIAL USE ONLY 15. Pope Case: Communist papers continue heavy play, with others giving it attention. CONFIDENTIAL === [PDF page 30] === CONFIDENTIAL -10- 1833, January 14, from Djakarta attention. Reporting fairly straightforward. No significant editorial comment solely on Pope case. All papers, including Communist and Leftist, carried blunt denial by Defense Minister Nasution of Communist charge that government received note from Ambassador Jones on Pope case. NUSANTARA gives it two-column front page headline. Of interest is fact anti-American slogans appeared in Djakarta this week for first time in more than 18 months, with entry gatepost of USIS as one of "billboards". OFFICIAL USE ONLY Comment: Military pressure continues keep Communists pretty well in line on Pope case. Anti-American slogans appear to be possible answer to official edict barring editorial comment in press on trial. UNCLASSIFIED 16. USIS Subsidy Issue: Pro-Communist papers have given heavy play, run number editorials on charges originally printed pro-Communist TROMPET MASJARAKAT of Surabaya that USIS subsidizing NASANTARA, PEDOMAN, POST INDONESIA, ABADIRPABADI. CONFIDENTIAL Comment: USIS bought up, distributed on unattributed basis approximately 4500 copies issues ISANTARA containing anti-Communist items which USIS had not planted, plus issue PEDOMAN's magazine SIASAT BARU with article USIS had planted. Nothing significant of this kind done with POST INDONESIA, ABADI. Communists making educated guess on source, trying discredit USIS and papers attacked, shift at-. tention from their own problems. So far little attention to charge outside pro-Communist press with execption short TIMES editorial CONFIDENTIAL === [PDF page 31] === CONFIDENTIAL -11- 1833, January 14, from Djakarta editorial asking for answer to charge, saying it serious if true. ARMY UNCLASSIFIED 17. Promotions to General Officers: General: Supajogi, Following Army Colonels promoted Brigadier Minister for Minister of Production; Dr. Azis Saleh, junior Health; Public for Minister junior Satrio, Agriculture; Dr. "C-course attending now Suharto, former territory IV Commander deputy ACS appointed newly and ACS deputy Jani, in Bandung; Sultan of Defense. Department for East Indonesia; Suprapto, to Brevit General. General Brevit from promoted Djogjakarta in ceremony at Merdeka Palace January 14. UNCLASSIFIED 18. Number of Military Attaches for 1960: following 15 Defense Minister Nasution told Parliament recently with accordance Attaches countries will have military (Army) Yugoslavia, Germany, West percent: 50 number decision reduce UK, Soviet Union, Thailand, UAR, Australia, Pakistan, Malaya, and US. Singapore, France, CPR, Philippines, India, UNCLASSIFIED 19. Security Situation: December 31 Lt. General Nasution at mass rally Sibolga Sumatra: panuli rebels remaining called on approximately 2,000 Gint Colonel night Following amnesty. to Republic, promised crushed in 1962. GOI in Neden sta ted PRRI rebellion will be have moved activities nounced rebel forces operating in Riau and East Suma border between Riau and West Sumatra, Tapanuli norma1k-s returning Road traffic Medan to Sibolga resumed and Java: GOI CONFIDENTIAL === [PDF page 32] === CONFIDENTIAL -12- 1833, January 14, from Djakarta Java: GOI announced number terrorist raids in West Java late December and early January. 14 villagers killed in Tjibelentuk village Tjilawu sub-district, several village guards killed other areas, numerous houses destroyed and plundered. 'omoc" armed bandits ambushed police motor column beSulawesi: tween Tanete and Bulukumba, South Sulawesi killing 3 persons. GOI announced armed clashes among Permesta groups in North Also announced "pacificaSulawesi due squabbles between leaders. area without too much same forcesin Permesta against OPNS tion" detail. AIR UNCLASSIFIED 20. Air Force Attaches: Auri informed Parliament stationing of Air Force Attaches limited Emby budget to India, Britain, Egypt and Philippines to date. also Attaches with Asia, Southeast placed being phasis stationed in Middle-East, West and East Europe and US. NAVY--Negative. JONES VHD:CC-10 *As received. Pouched by DC/T CONFIDENTIAL === [PDF page 33] === Department of State INCOMING TELEGRAM CONFIDENTIAL 58 Action IRC Control: 13159 Rec'd: January 23, 3:'12 A.M. FROM: Djakarta Info INR EURA ICA USIA OCB CIA OSD ACTIN COP Secretary of State 1911, January 21, SENT DEPARTMENT 1911, 1960 CINCPAC 409. PASS CINCPACFLT, CINCUSARPAC, COMSEVENTHFLT, COMNAVPHIL CINCPACAF, DEPARTMENT POUCH THE HAGUE, PARIS AljDVL APMY CINCPAC ALSO FOR POLAD RMR JOINT WEEKA NO. 4\FROM SANA. POLITICAL LIMITED OFFICIAL USE Dissatisfaction with Economic Situation Grows. Outstanding parliamentary debate 1960 budget ended January 18. feature almost unanimous criticism deteriorating economic PKI speeches situation and government failure halt drift. most numerous and pointed out other major parties ran close second, August monetary reforms, price and tax increases, Chances keeping down slow pace development all hit hard. deficit and efficacy government economy programs seriously Even Sukarno's "luxurious" life not spared. questioned. During week, representatives labor unions and women presgate petitions Trade Minister demanding lower prices, picked One-newspaper identified many of women as c+ m building. Communist Womens Organization Gerwani. picketing cotiu ing despite War Administrator reminder all demonstrations Leftist student groups presented similar demands Minis Education and Trade and Members of Parliament J~nuary 0. PERMANENT CONFIDENTIAL UNLESS ' CLASSIFI ED" REPRODUCTION FROM THIS COPY IS PROHIBITED. RECORD COPY " This copy must be returned to RM/R central files with notation of action taken. === [PDF page 34] === CONFIDENTIAL 1911, January 21, from Djakarta. LIMITED OFFICIAL USE political dissatisfaction COMMENT: Petitions demonstrates growing too early predict Still situation. over worsening economic reply whether Parliament will reject budget. Government reduction measures other and (scheduled begin February Parliament ruffled soothe may martial EITYVN * in certain areas) and picketing part of enough to permit approval. Petitions situation. economic increasing Communist exploitation OFFICIAL USE ONLY Indonesia-CHICOM Relations. January 20, Foreign Minister Subandrio met with CHICOM Ambassador Indonesia-CHICOM 1955 ratifications. exchange announced later January 25 if not citizenship agreement would be concluded by interrupted, temporarily already done (communications with Peking 20 as January place took exchange whether so government unaware originally scheduled). Java resettlement During five-day tour January 11-16 of West rural from evacuated Chinese alien centers for demonstrations evacuee repeated Foreign Minister and party met demanding brutality, army alleged conditions, protesting camp staged. obviously demonstrations repatriation China. Some of in politics, said engaging against demonstrators warned Subandrio new businesses or government not planning aid them establishing to aid implementreturning China, called on them accept sacrifices ation Indonesian revolution. leaving Indonesia for Continuing reports large numbers Chinese received by China. Over 1200 applications CHICOM passports heavy outflow year, first since Surabaja Chinese Association General office Attorney planes. and ships passengers Chinese volume goods being taken January 20 said government disturbed at restrictions. impose out by departing Chinese, planned CONFIDENTIAL agreement, Despite impending implementation citizenship COMMENT: who can those here, future little see Chinese obvious that local efforts.. government with together afford it getting out. Exodus, /prevent CONFIDENT === [PDF page 35] === CONFIDENTIAL 1911, January 21, from Djakarta. prevent their taking assets with them, may further strain Indonesia-CHICOM relations local economy. UNCLASSIFIED Communist Leader Criticizes Government. In two statements in HARIAN RAKJAT, January 16 and 18, M. H. Lukman, PKI Deputy Chairman and acting party head during now extended absence Party Chief Aidit in bloc, declared Cabinet obviously failure as currently constituted, demanded replacement some (unnamed) ministers by leaders more capable fulfilling President's program. Denounced packing Peoples Consultative Congress with appointed members (WEEKA 3) and predominance army members in functional group body. Also declared most democratic way simplify parties would be new elections with election law to exclude splinter groups. Denied new party regulation would hurt PKI (See Item 4). Commenting on threeyear term of Peoples Congress, Lukman charged violation government promise hold elections this year. OFFICIAL USE ONLY COMMENT: These statements, picketing Trade Minister's office by Leftist women and laborers in defiance army ban (see Item 1), and new novel by PKI writer Tur about corrupt officials and wife-swapping army officers, all signs increasing PKI combativeness. CONFIDENTIAL Political Party Regulation. Information Minister announced January 16 that regulations to~gg be issued next week implementing decree No. 7 (WEEKA 3). Majo, parties initially cautious in reaction to decree. PNI and NUEI parties least likely suffer, have indicated lukewarm support. PKI critical but not openly opposed (see item 3). lasjumi, apparently chief target of decree, engaged in sharp internal debate over attitude toward it, one faction favoring refraining from full compliance even at risk dissolution, other calling fb compliance. Biggest obstacle Masjumi compliance reportedly requirement endorse Pantja Sila. Re required denunciation rebel CONFIDENTIAL leaders === [PDF page 36] === CONFIDENTIAL 1911, leaders, January 21, from Djakarta. party apparently taking position former leaders now with rebels no longer party members, thus no need denounce. Party Chairman Praqoto gave personal view January 16 press statement, asserting that presidential decrees merely government policy rather than law, may be reversed at any time. CONFIDENTIAL Masjumi may be under-estimating depth Sukarno feeling COMMENT: against party, length he willing go in order strike at them. OFFICIAL USE ONLY Martial Law To Be Relaxed some areas. Meeting between President/Supreme War Administrator and his assistant body January 16 took decision relax martial law unspecified areas from state of war to one of less stringent states of emergency. Also agreed on government regulation Supreme War Administration Staff. Both decision and regulation to be announced "soon". OFFICIAL USE ONLY COMMENT: Decision relax martial law most likely affect central and East Java, Nusatenggara, perhaps parts Kalima Tan; probably intended temper growing criticism of government by political parties. Relaxation opens possibility renewed political activities as further disquieting feature current scene, but government powers under either "military" or "civil" emergency seem sufficient keep political activities at low pitch. OFFICIAL USE ONLY Singapore Premier Visit. Premier Lee Kuan Yew and party arrived Djakarta January 19 on Usual round receptions, courtesy calls on week official visit. He held discussions January 20 with Sukarno and other officials. First Minister Djuanda, Foreign Minister Subandrio over trade relations, Indonesian claims that rebels using Singapore as base. CONFIDENTIAL === [PDF page 37] === CONFIDENTIAL 1911, January 21, from Djakarta In press conference Lee implied Singapore considering opening diplomatic mission in Djakarta. Party left Djakarta January 21 for five-day tour hinterland, to continue discussions on return. OFFICIAL USE ONLY COMMENT: Singapore, While Indonesians leery of capitalist Chinese atmosphere they relatively sympathetic Lee government because of its anti-colonialist leanings. Lee's chief interest appears be revival flagging trade, while Indonesian prefer talk about alleged rebel activities Singapore. UNC LASS IF IED Sukarno on Khrushchev Visit. In statement to PRAVDA correspondent published January 19, Sukarno said forthcoming Khrushchev visit coming at crucial moment history, with significance "transcending" promotion Indonesian-Soviet understanding. Noting Indonesian efforts ease international tension, abolish mass-destruction weapons, and promote Bandung formula for settling world problems, Sukarno said Khrushchev's "position and strength" make possible their realization. Hoped visit would fortify Khrushchev in search for universal peace, said Khrushchev would receive Indonesians endorsement "all efforts" this direction. "Should Eisenhower visit Indonesia, would be given similar message," Sukarno concluded. OFFICIAL USE ONLY. COMMENT: Sukarno statement, which received good radio, press coverage, undoubtedly welcome to Soviet and PKI in efforts portray Khrushchev as peace-maker. Reference Eisenhower visit possibly intended provide East-West balance; more likely pointed reminde disappointment Eisenhower failure visit Indonesia on recent tri OFFICIAL USE ONLY. Pope Trial. Trial resumed January 16 with Pope commentary on testimony prosecution witnesses. Pope denied making any combat flights except that of May 18, 1958 and pointed out numerous contradictions /prosecution CONFIDENTIAL === [PDF page 38] === CONFIDENTIAL 1911, January 21, 7 P.M. from Djakarta Trial adjourned until February 1 enable prosecution testimony. demonstrations or prosecutor prepare summary statement. No revive will disorders to date, public interest fading but perhaps reaches conclusion. as trial CONFIDENTIAL COMMENT: Understood Pope and defense lawyer plan strong plea based on international law. OFFICIAL USE ONLY Supreme Advisory Council Meeting. January 12-15 First 1960 session Supreme Advisory Council held Debated land reform issue inconclusunder Chairmanship Sukarno. statement for ively, named committee to draft land reform policy 8-10. March scheduled further consideration next session, study appointed committee second membership, request portion current booming commodity prices, report to next meeting. OFFICIAL USE ONLY more effective COMMENT: Session produced no evidence Council any hot issue take Council that Fact believed. than earlier chance spread government give may commodity prices at next meeting growing forestall inflation, continuing for responsibility demands for action on issue. OFFICIAL USE ONLY 10. Regional Government Reorganization. West Java and Government has named army officers as Governor Reorganization Decree under Djakarta Mayor Suiabaja Mayor Communist Former given pro-PKI deputies. reappointed. CONFIDENTIAL COMMENT: Latest appointments appear to be Sukarno balancing act, /giving CONFIDENTIAL === [PDF page 39] === CONFIDENTIAL 1911, January 21, 7 P.M. from Djakarta giving army top regional posts but saddling them with PKI Surabaja reappointment not unexpected, as Mayor deputies. reportedly popular figure. At same time, represents setback to army, which was determined block appointment. Fact that army able obtain Djakarta and West Java posts for first time, however, greatly strengthens its hold on these vital areas. UNCLASSIFIED 11. Sultan of Jogja promoted to General. In Palace ceremony January 14 Sukarno installed Sultan of Jogja as country's first four-star general (brevet). In speech lauded Sultan as example highest nature Indonesian people, compared him to great foreign and domestic revolutionary leaders. LIMITED OFFICIAL USE COMMENT: Reason for this singular honor to Sultan unclear. May be attempt Sukarno cash in on Sultan's undisputed popularity or may be method give Bapekan (WEEKA 35) more prestige when Could also presage more dealing with local military chiefs. important role for Sultan. PSYCHOLOGICAL. UNCLASSIFIED 12. Economic Situation. Editorials papers all political shades expressed discouragement economic situation. Various non-Communist papers attempted some analysis but pro-Communist press merely criticized government, reductions.OI call for price OFFICIAL USE ONLY: COMMENT: Mood editorials near despair; nobody sees way out. Comment by pro-Communist papers supplementing organized demonstrate tions (see Item 1) in effort assume role as only group really / interested CONFIDENTIAL === [PDF page 40] === CONFIDENTIAL 1911, January 21, 7 P.M. from Djakarta interested in fate common man. PEDOMAN pointed this out in editorial on role PKI in Parliament budget debate. UNCLASSIFIED Parties, national front, only scattered further comment 13. point in regulation PEDOMAN noted little new party regulation. ABADI suggested PKI since Parliament ignored by government. On other side, HARIAN RAKJAT felt ineligible under regulation. role Masjumi, PSI, in rebellion raised question their status. Pro-Communist HARlAN FADJAR believed national front will have little attraction for people who already belong parties but suggested wait and see attitude. UNCLASSIFIED 14. Lee Kuan Yew Visit. Papers all shades political opinion welcomed Lee, felt visit would make possible beneficial exchange information and views number problems mutual interest. Several, however, pointed out Indonesian rebels allegedly still active in Singapore. UNCIASS IFIED 15. Khrushchev Visit. Communists have begun build-up Khrushchev visit with distribution PRAVDA, TASS interviews Sukarno and others,on significance visit. PRAVDA interview with Sukarno received good play. UNCLASSIFIED 16. Chinese Issue. Only scattered comment this issue, largely stimulated by,Subrandgio visit West Java. SULUH INDONESIA, MERDEKA, TIMES, OBSERVER hailed Subandrio statements on visit. Duta Masjarakat replied to Radio, Peking charges Indonesian discrimination against overseas Chinese Communist. by saying all Chinese who want to leave should leave. REPUBLIK charged many Indonesian citizens Chinese descent victimized /under CONFIDENTIAL === [PDF page 41] === CONFIDENTIAL 1911, January 21, 7 P.M. from Djakarta under alien trade ban. OFFICIAL USE ONLY. COMMENT: interest. Issue has greatly calmed down but still attracts some UNCLASSIFIED 17. Sin Po Changes Name. Pro-Communist Chinese Indonesian-language paper SIN PO announced name change as of February 1 to PANTJAWARNA, meaning "multicolored." OFFICIAL USE ONLY COMMENT: With Chinese issue still simmering, paper apparently feels it will be more effective with good Indonesian name. UNCLASSIFIED 18. Ike to Moscow. Announcement forthcoming Ike trip to Moscow got good press coverage (1-2 columns, front pages, most papers). UNCLASSIFIED 19. USIS Subsidy Issue. (WEEKA 3) Nothing more on this except four-column frontpage cartoon in HARIAN RAKJAT depicting dollar-emblazoned monster with many hands feeding anti-Communist papers with one hand, distributing' papers with others. Text reads: "Producer and distributor." ARMY UNCLASSIFIED 20. Promotions and Assignments. Press announced promotion Colonel Kosasih, Commander West Java, CONFIDENTIAL === [PDF page 42] === CONFIDENTIAL -10- 1911, January 21, from Djakarta. to.Brigadier General; and Lt. Colonel Umar Wirahadikusumah, Commander Djakarta Raya, to Colonel. Brigadier New assignments announced January 18 and 19 included Education, and Training Army General Sudieman as Commander Brigadier General Suprapto as Governor of National Military Academy, Colonel W. Shington Siahhayn as third deputy of Army War Chiefs of Staff and concurrently deputy to the Army for appointment was press announced Also Administration. Colonel (DR) Sumarno, Suad III as Mayor of Djakarta and designation Lt. Colonel Mashudi as Governor of West Java. CONFIDENTIAL. COMMENT: Brigadier General Suprapto informed Army Attache January 19 that Major General Gatot Subroto, Vice Chief/Staff, had said he may not be assigned National Military Academy, Suprapto not told what job. may get another job instead. sources indicates Colonel other from information Additional new Kusno Utomo, Commander Kalimantan, and Colonel Mologinta, deputy to Vice Minister of Defense, will be promoted Brigadier General in near future. UNCLASSIFIED 21. Inauguration of Djakarta Command. On January 18 Djakarta city garrison, formerly under command Siliwango division, was inaugurated as fifth "Djaja" military district. New district includes area formerly under Djakarta city garrison as well as Bekasi and Tangerang regencies. UNCLASSIFIED 22. Security Situation. GOI announced piracy of four tons rice from ship in Sumatra: followers of Wahab Ibrahim in Atjeh. Also announced Lamtamor increased operations against Daud Beuruehs troops including counter-attacks in Bir Unr-Kakengon* area. CONFIDENTIAL Army === [PDF page 43] === CONFIDENTIAL -11- 1911, January 21, 7 P.M. from Djakarta. rebel leaders in Army continues report dissatisfaction between Tapanuli. Reportedly rebel leaders, including Simbolon, met on January 7 in attempt calm down disputes. Java: GOI announced continued raids by DI gangs ranging from Raids conducted in Bandung-Garut 20 to 70 men in West Java. other areas. from No communiques areas. NAVY. Negative. AIR. Negative. JONES. * As received. Note: Will service upon request. passed CINCPACFLT, CINCUSARPAC, CINCPACAF, COMTDC, USAISC, COMSEVENTHFLT, COMNAVPHIL, CINCPAC, CINCPAC POLAD JANUARY 22, 1960 KJW Pouched by DC/T. "mow E'er ti'i CONFIDENTIAL === [PDF page 44] === ACTION P Department of State INCOMING TELEGRAM SECRET 46 IRC INR EUR Rec'd: January 28, :36 p.m. FROM: Djakarta Secretary of State 2003. January 29, pARI AND LO pASS CINCpACFLT, CINCUSARpl CIN PACAF/COD6 COSIEVENTHFLT, COMNAVPHIL CI GPAC 428 CINCpAC ALSO FOR pOLAD AIR JOINT WEEKA NO. COUSACRAVAC, ARMY N.AVY 1960 DEpARTMENT POUCH THE HAGUE, USIA CIA OSD 18130 Control: Action 5 FOR SANA DEpARTMENI. yFRO RMiP POLITICAL OFFICIAL USE ONLY In face conGovernment reaction to economic discontent: tinuing protests, demonstrations and resolutions against runaway 0) prices, government reacted with series speeches and announcements 0 emphasizing determination use force against those responsible for economic deterioration and claiming crisis due largely "psychopolitical" factors. 9 Djuanda January 22 said government's chief policy in 1960 is "keeping prices at official levels," warned of stern penalties Ito economic offenders. Nasution January 23 claimed economic situation actually not so bad but being exploited by "c tdke ordered ADS war said groups" and "subversive elements", nf.gnationc drastic action against those guilty creating panic. ising Department January 25 issued government "explanation' 4orric due not economy state "precarious" Claimed prices: factors alone, but especially to "psycho-political" factors. Cited as examples rush on goods by persons about to lea Indonesia (i.e., Chinese) and people who had heard "nal ous" Announced government intention takqrastic rumors devaluation. punish *measures: Fixing prices essential commodities, and seve officials meeting-po-lice told 27 Sukarno January violators. UNLESS "UNCLASSIFIED" and public . REPRODUCTION FROM THIS 1ment COPY IS PROHIBITED. SFMFT PERMANENT RECORD COPY " This copy must be returned to RM/R central files with notation of action taken. === [PDF page 45] === SECRET from Djakarta -2- 2003, January 29, 8 am. Attorney General impose and public prosecutors he had ordered on economic defenders. "heavy penalties, even death sentence" students at palace group large spoke Later same day Sukarno re rising prices. Largely a pep-talk: Said big struggles not lose heart, again entail big sacrifices, urged students promised Cabinets thinking", damned capitalists and "textbook years. three two achieved program would CONFIDSNTIAL in efforts reassure Sukarno personal. participation Comment: Government anxiety. government populace a good index depth affect present situation or likely not threats and reassurances Efficacy of price controls private statements government and public seen. remains crisis in large leaders indicate their increasing conviction Chinese. Overseas activities due part quell. growing dissatisfaction. OFFICIAL USE ONLY decision re relaxation 2. Relaxation martial law: presidential 1 Bali and Central April 21. martial law announced January as of July 1 emergency;" "civil state Kalimantan Jogja special Nusatenggara, west and rest of Kalimantan, east (except Surabaya City and Java central and east and district, residencies) to be in state Kabupaten, pekalongan and Banjuma's of "military emergency". CONFIDENTIAL martial law plus exceptions Comment: Choice of areas for relaxing government intends indicate regions emergency" to "military parties. Notable political minimize effects this concession of war, making recent state remain environs and that Surabaya less significant. appointment Communist Mayor Strijo OFFICIAL USE ONLY Department confirmed 3. Indonesia-CHICOM relations: Foreign citizenship Indonesia-CHICOM 1955 ratifications that exchange formed Committee Joint 20. January agreement took place Peking Djakarta SECRET === [PDF page 46] === SECRET -3- 2003, January 29, from Djakarta Djakarta January 25 implement agreement, with CHICOM Ambassador Huang Chied CHICOM representative; Susanto Tirtoprodjo, former Indonesian Ambassador France, heading Indonesians. Text Subandrio reply CEICOM Foreign Minister's letter of December 24 (WEEKA 1) released by Foreign Department January 27. Letter conciliatory in tone but firmly reasserted Indonesian Denied Indonesian treatment Overseas Chinese an internal matter. had any reason feel grateful for Overseas Chinese contributions to econc..r, Suggested CHICOMs recognize problem Overseas Chinese not creaied-I by CPR or Indonesian Government but by predecessors. Said government willing make place for Chinese wishing remain -.donesia..,.would facilitate departure those wishing repatriation. Denied any violation rights Overseas Chinese, thus no reason for Charged Overseas Chinese now negotiations with CPR over status. trying disrupt Indonesian economy, warned government may be forced take measures against them. Noted all restrictions movements CHICOM Embassy personnel lifted January 11 (WEEKA 48). popular resentment Chinese continues simmer, nourished by deepening economic crisis (Item 1) and charges by various leaders that Anti-Communist daily NUSANTARA opened ediChinese responsible. Lor al offensive against Bank of China, calling for closure on grotunds subversive activities. CONFIDENTIAL Comment: Exchange ratifications citizenship agreement, mild tone Subandrio letter indicate both sides willing shelve dispute at least for time being. Alarming price spiral and obvious role Overseas Chinese in feeding it, however, presage continuing wave resentment against Overseas Chinese, possibility of incidents sparking renewal dispute, Subandrio told Ambassador that local Chinese pulling every trick in book to sabotage economy, prevent government dislodging them from retail trade stranglehold. Indonesian leaders privately showing good deal interest in Bankh. of China, awareness its covert activities. SECRET Indonesian army approach to Taiwan: SECRET In response indirect approach === [PDF page 47] === SECRET -4- 2003, January 29, 8 a.m. from Djakarta GRC approach by Nasution Special Assistant Sukendro (WEEKA 2), indicated might consider issuing desired statement re Overseas release Chinese if Indonesians met certain conditions such as jailed KMT leaders, reopening pro-KMT newspapers, return seized KMT properties. Sukendro (ARMA satisfied he speaking for Nasution) noted several. of conditions already met and others GRC reaction forthcoming, repeated request for GRC statement. recent whether question raised but reportedly not unfavorable, Subandrio statement, interpreted as blaming GRC for creation Overseas Chinese problem, indicated change in Indo policy. SECRET Subandrio statement objected to by GRC actually quite Comment: Subsequent Subandrio letter to CHICOM Foreign innocuous. Minister (Item 3), however clearly blames Chinese regencies prior to Communists for Overseas Chinese problem. OFFICIAL USE ONLY Orgar.ization of Central War administration: Government regu5. lation on organization Central War Administration announced supreme January 21. Confirms assistance body as aid to present administration in determining major policies re martial law. Day to day work of administrator to be handled by two deputies: First Minister Djuanda as first deputy, Defense Minister Nasution Staff to be headed by "chief" chosen from as second deputy. armed forces, with minimum rank Colonel. CONFIDENTIAL Choice of Djuanda as first deputy unexpected surprise Comment: However, and regarded by some as decline Nasution influence. as long as Nasution remains Defense Minister and second deputy, his voice likely be strongest if not controlling factor in war crucial position administration. Choice of officer to fill position. Nasution light more throw should chief staff SECRET prawoto and Roem discuss future of Masjumi: In conversation with Ambassador SECRET === [PDF page 48] === SECRET 2003, January 29: 8 a.m. from Djakarta with Ambassador, Masjumi chairman prawoto and party leader Roem expressed fear decree number seven (WEEKA 3) designed destroy Masjumi. Said party unwilling sacrifice principles by subscriIf it appears bing panjasila and condemning rebel leaders. Sukarno planning outlaw Masjuxmi, party may dissolve self but more likely will. let Sukarno act in order put onus on him. prawoto beginning doubt Nasution's willingness stand up to Sukarno, as shown by recent acquiescence deputy regional heads (WEEKA 3). appointment PKI Also doubted Masjumi willing submerge identity in Sukarno-led national front. SECRET Comment: prawoto and Roem, usually optimistic but political realists, appeared discouraged and disheartened by current trends. SECRET 7. Nu party shifts to strong criticism of Sukarno: In conversation with DCM January 22, Nu Chairman Chalid said party upset by recent PKI appointments deputy regionalheads, feared Sukarno Still shifting 'furths I f tdue'impending Khrushchev visit. believed Nasution last hope religious parties in Indonesia, still had confidence in him, felt he awaiting right moment to act. Nu organ DUTA MASJARAKAT January 27 frontpaged Chalid speech severely critical of one-man rule. Said parliament and peoples Congress must be allowed their proper role, president must limit self to constitutinal role, parties should be main agent guided democracy, all decisions should be by common agreement. Also sharply critical of Marxism. Next day, paper extensively quoted several other top Nu leaders saying essentially same thing. SECRET Nu clearly annoyed by Sukarno failure reward them for Comment: past support by giving them several governorships. party now seems united in campaign sharp criticism Sukarno and one-man rule, joining Masjumi in direct opposition Sukarno policies, although might be brought back into line through satisfaction some demands. SECRET === [PDF page 49] === SECRET -6- 2003, January 29, from Djakarta OFFICIAL USE ONLY National peace conference opens: Sukarno opened national peace conference Bandung January 25 with speech denouncing capitalism, colonialism, imperialism, calling for "moral violence" 2,500,000 people for peace, Summit meeting, destruction A-bombs., Subandrio, Kjuanda also spoke, giving affair strong official flavor. Newspaper NUSANTARA earlier denounced conference as Communist-inspired. Head of conference committee, Mrs. Hidajat, wife of General Hidajat, deputy Defense Minister, denounced charge as violation president's political manifesto, demanded punishment for paper, War administrator issued "stern warning". PEDOMAN followed with same charge, however. OFFICIAL USE ONLY Comment: Conference in Bandung, away from Red mobs, overshadowed by demonstrations against price spiral, economic woe of government. OFFICIAL USE ONLY Singapore premier visit concluded: After five-day tour hinterland (WEEKA 4), Singapore prime Minister Lee Kuan Yew left Indonesia January 26. Joint communique issued with first Minister Djuanda prior departure announced Singapore intention set up trade commission in Djakarta, Indonesian plan send trade mission Singapore after March. Singapore to continue moves stamp out activities expatriate Indonesian rebels in city, halt smuggling counterfeit Indonesian currency. Lee endorsed Indonesian claim West New Guinea, Djuanda accept invitation visit Singapore. LIMITED OFFICIAL USE Comment: Visit moderately successful, although doubtful that Lee -seriously cracked longstanding Indonesian antipathy capitalist Chinese Singapore. Lee outspoken in private comments, impressed neither by Indonesia nor Sukarno. UNCLASSIFIED 10. Czech delegation comes, goes: Zdenek Fierlinger with Czech "parliamentary" SECRET === [PDF page 50] === SECRET 2003, January 29, 8 a.m. "parliamentary" delegation of from Djakarta eight arrived Djakarta January 14, left January 24 after usual round of calls on president and other official, fetes by friendship society, trips to Jogja temples, utterances in colonialism. support Indonesia West New Guinea claim and against PSYCHOLOGICAL UNCLASSIFIED Information Minister Maladi disclosed 11. press controls: press in current widespread "retooling" include plans week during process, said government shortly will issue new press law by decree which will contain requirement that papers and news agencies accept political manifesto, be capitalized by Indo nationals. In advance of decree, screening committee already established to begin "retooling" process by comparing newsprint allocations with actual circulation figures, and reviewing organizations, capital and distribution system each paper. As first step, committee All papers has cancelled all newsprint allocations for March. papers not and news agencies required submit new applications. satisfying committee requirements will have newsprint license revoked but not forbidden publication rights pending promulgation formal press regulation. UNCLASSIFIED Indo-Soviet friendship Film on Khrushchev visit to US: 12. association sponsored invitational showing January 23 at local Invitations theater of Soviet film on Khruschev visit to US. issued to ranking civil, military and police officials, and other prominent residents Djakarta including some members diplomatic community. ARMY UNCLASSIFIED 13. Security situation: Sumatra press announced minor clash between rebel and GOI troops in Atjeh, other small skirmishes-in north SECRET === [PDF page 51] === SECRET -8- 2003, January 29, 8 a.m. from Djakarta in north and west Sumatra. Army information service announced recent operation by units of second RCT in west Sumatra resulted in 200 rebels killed. South Sumatra military, announced following rebel casualties for year 1959: Killed 134, captured 507, surrendered 1489. North Sumatra Commander Colonel Gintings has given rebels in his area two months, effective January 15, in which to surrender and receive Java: fair treatment. GOI announced additional raids by DI/TII rebels in the Garut and Bandung areas. Largest raid mentioned was by force of 200 rebels 15-KM from Tasikmalaja. No casualties announced. In GBN area of Central Java, GOI announced rebel strength reduced to approximately 350 DI/TII. During year 1959 more than 200 rebels killed and 50 captured. GOI released no information on rebels activities other areas Indo. AIR UNCLASSIFIED 14. Dehaviland "Caribou" demonstration: On January 25 and 27 Dehaviland of Canada representatives demonstrated DHC-4 Caribou aircraft to Indo Government and military officials. Demonstrations included jeep loadings, conversion from troop to cargo cinfiguration, short field take offs and landings, take offs and landings on unimproved strips, and general air performance characteristics. UNCLASSIFIED Comment: Air Marshal Suryadarma prepared purchase unknown quantity these aircraft provided suitable financing can be arranged and delivery schedules satisfactory. He is quite impressed with performance and adaptability to Indo airfield conditions. === [PDF page 52] === SECRET -9- 2003, January 29, 8 a.m. from Djakarta NAVY-Negative JONES MGG: TR/3 passed CINCpACFLT, CINCUSARPAC, CINCpACAF, COMTDC, Note: COUSACRAPAC, COMSEVENTHFLT, COMNAVpHIL, CINCpAC,1/29/60, 8:30 a.m. WVC POUCHED BY DC/T. Qr1n19'