DEPARTMENT OF STATE Memorandum of Conversation
DATE: September 14, 1951
SUBJECT: Indonesian Foreign Minister's Call on the Secretary
PARTICIPANTS: Mr. Dean Acheson, Secretary of State Mr. W.S.B. Lacy, Director, Office of Philippine and Southeast Asian Affairs - Mr. W.D. Coerr, Acting Officer in Charge, Indonesia and Pacific Island Affairs Mr. Ahmad Subardjo, Indonesian Foreign Minister Dr. Ali Sastroamidjojo-Indonesian Ambassador to the United States
COPIES TO: S FE PSA
Having come to Washington after signing the Japanese Peace Treaty at San Francisco, Indonesian Foreign Minister Subardjo, accompanied by Ambassador Ali Sastroamidjojo, called at his request on the Secretary Friday evening, September 14.
After amenities were exchanged, Subardjo informed the Secretary that economic and security conditions in Indonesia are still bad and that Indonesia faces a difficult problem in rehabilitation. He dwelt briefly upon the Indonesian Government's difficulty in dealing with guerilla activity, and as an example mentioned that the lack of telephones with which to equip villages in outlying regions seriously hampers the coordination of repressive action by Government forces. As a partial remedy for the above situation, Subardjo said that his Government would be interested in the possibility of obtaining from the United States a "general purpose" loan, although he did not elaborate as to the amount desired or the precise uses to which such a loan would be put. He said that the Indonesian Ambassador might discuss this matter further with the Department.
The Secretary replied that the above type of financial assistance would probably be difficult for the United States to provide in view of the current availability of appropriations. He assured the Foreign Minister, however, of the United States Government's continuing desire to be of assistance. The Secretary added that the Department would be very glad to receive from Ambassador Ali any specific requests for material with which to meet Indonesia's pressing needs which the Foreign Minister had described.
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