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INCOMING TELEGRAM Department of State DOCUMENT 1

                                       Declassified Docum
                                         Reference System
                                  (Her after DDRS) 1975:1
    Control:  4223
    Roc'd:    MARCH 6, 1964
    FROM:     DJAKARTA  8:36 A.M.
    ACTION:   SECSTATE 1854 IMMEDIATE
    INFO:     KUALA LUMPUR 676 IMMEDIATE
    DATE:     MARCH 6, 6 P.M.
    LIMDIS
    DEPTEL 946

DURING HOUR AND TEN MINUTE CONVERSATION WITH GEN NASUTION THIS MORNING, I MADE MAJOR POINTS IN REFTEL. I SAID I CAME IN SPIRIT OF FRIEND OF INDONESIA WHO SAW STORM CLOUDS ON HORIZON AND WHO BELIEVED IN OLD ADAGE, AN OUNCE OF PRVENTION IS WORTH POUND OF CURE. NASUTION LISTENED SOBERLY FOR HALF AN HOUR AS I PAINTED PICTURE OF CRITICAL ECONOMIC SITUATION, COLLISION COURSE ON WHICH GO I, SERIOUSNESS OF SITUATION THAT MIGHT DEVELOP IF BANGKOK TALKS PAILED AND OBVIOUS FACT THAT SITUATION APPEARED TO BE PLAYING INTO HANDS OF PKI THREATENING HIS OWN STATED OBJECTIVES FOR INDONESIA AND LEADING TO POSSIBLE SERIOUS BREACH WITH FREE WORLD AND SPECIFICALLY US. INTENT DOWN THE LINE REMINDING NASUTION AMENDMENTS OF AID LEGISLATION MIGHT SOON FORCE US TO CANCEL ALL AID TO INDONESIA AS WELL AS ANZUS TREATY OBLIGATIONS WHICH WOULD APPLY IF AUSTRALIAN AND NEW ZEALAND FORCES BECAME INVOLVED.

NASUTION SAID HE DID NOT DISAGREE WITH MY ANALYSIS OF THE SITUATION WHICH INTERNALLY AND EXTERNALLY HE REGARDED AS MOST SERIOUS. HE REMINDED ME THAT MONTHS AGO HE HAD STATED HIS PESSIMISTIC OUTLOOK OVER THE MALAYSIA PROBLEM AND HIS CONVICTION THAT THE MANILA-TOKYO TALKS COULD NOT RPT NOT ACTUALLY SOLVE PROBLEM. HE ADMITTED FRANKLY CONFRONTATION WAS HURTING

COMMENT: MY IMPRESSION WAS THAT NASUTION WAS IMPRESSED AND SOBERED THOUGH NOT SURPRISED BY SERIOUS VIEW WE WERE TAKING OF CURRENT SITUATION. ALTHOUGH HE CAREFULLY AVOIDED COMMENT ON EFFECT DEVELOPMENTS MIGHT HAVE ON US-INDO RELATIONS, HE OBVIOUSLY FULLY GRASPED IMPLICATIONS AND I AM CONFIDENT THIS PART OF CONVERSATION WILL BE PASSED ON.

NASUTION DEMONSTRATED COMPLETE FAMILIARITY WITH SERIOUSNESS OF ECONOMIC AND FOOD SITUATION (VOLUNTEERED TEN PER CENT OF JAPANESE GOING HUNGRY) AND MADE NO ATTEMPT TO GLOSS OVER ITS IMPLICATION.

I EMERGED WITH FOLLOWING CONCLUSIONS: 1. SHORT OF POLITICAL SETTLEMENT, INDO MILITARY ARE DETERMINED TO CONTINUE CONFRONTATION BUT WILL HANDLE WITH GLOVES TO PREVENT ESCALATION INTO LARGE SCALE CONFLICT AND WILL PLACE INCREASING EMPHASIS ON POLITICAL INDOCTRINATION OF "FREEDOM FIGHTERS" AS AGAINST JUNGLE WARFARE.

2. NASUTION AT LEAST WAS ALERT TO PKI DANGERS INTERNALLY AND PLACING GREAT EMPHASIS ON INDOCTRINATION OF OFFICERS AND MEN TO ENSURE MILITARY WILL BE READY TO MEET CHALLENGE WHEN IT CAME. INDO ARMY STILL ANTI-COMMUNIST IN OUTLOOK, HE INSISTED.

3. INDO MILITARY APPRENTLY HAD NO PLANS TO DEAL WITH ECONOMIC PROBLEMS OF NATION BUT ONLY THREAT TO NATION'S INDEPENDENCE WHICH SUCH PROBLEMS MIGHT BRING IN THEIR WAKE.

HE AVOIDED LIKE THE PLAGUE ANY DISCUSSION OF POSSIBLE MILITARY TAKEOVER, EVEN THOUGH THIS HOVERED IN AIR THOROUGHOUT TALK, AND AT NO TIME DID HE PICK UP OBVIOUS HINTS OF US SUPPORT IN TIME OF CRISIS.

I INTEND CONTINUE THIS TYPE OF CONVERSATION WITH OTHER MILITARY LEADERS, FIRST WITH GEN YANI.

AT OPENING OF CONVERSATION I PRESENTED AUTOGRAPHED PHOTOGRAPH OF NASUTION ON MEETING PRES JOHNSON FOR WHICH NASUTION EXPRESSED DEEP APPRECIATION. GP-3.

                                                        JONES

MV NOTE: PASSED WHITE HOUSE 3/6/64, 9:20 AM. ADVANCE COPY TO S/S-0, 3/6/64, 8:41 AM.

REPRODUCTION FROM THIS COPY IS PROBIBITED UNLESS "UNCLASSIFIED"

Lyndon Baines Johnson Library