INDONESIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A001100110005-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: October 29, 2002
• Sequence Number: 5
• Publication Date: November 24, 1959
• Content Type: BRIEF

Approved For Release 2002/11/19 : CIA-RDP79R0089OA001100110005-8
BBC BRTI-F`I G 24 November..1959
INDONESIA
President Sukarno, who ,is final arbiter of any policy in Indo-
nesia, continued government's firm line with Peiping on 20
November when he told Chinese. Communist ambassador in Djakarta
that. Indonesia will implement its presidential decree banning
alien (in effect,, Chinese) retail merchants in rural areas
whether Peiping likes it or not.
A. This decree.is part of campaign of "economic nationalism"
which was directed first against Dutch, then against*KMT
Chinese, and now against Peiping-oriented.Chinese and any
other aliens involved in retail trade in rural areas (few
Indians and Pakistanis).
1. Related order requires that-aliens in rural areas, re-
gardless of occupation, be resettled in towns and cities;
deadline for implementation of both is 1 January 1960.
More than 300,000 Chinese of total 3,000,000
nesia estimated involved.
in Indo-
B. Peiping, whose prestige as protector of Overseas Chinese
obviously at stake, strongly pressured Indonesian govern-
ment for repeal of decree; when this unavailing, ordered
Chinese
Chinese
orders.
DI-CLASS! F! ED
CLASS.c:. Ncur] TO: T3 S C
AUTH:11'~ I1R 0?
DATE.REVIEWER:
Approved For Release 2002/11/19 : CIA-RDP79R0089OA001100110005-8
embassy officials to circulate among Indonesian
and instruct them to resist Indonesap government
[DOCUMENT NO.
.25X1
 Approved For Release 2002/11/19 : CIA-RDP79R0089OA001100110005-8
1. Neither Peiping nor Djakarta appear at this time to
be thinking in terms of suspending relations.
II. Sukarno told Chinese ambassador at 20 November meeting he could
listen to no more objections to Indonesian: ban at this time.
A. He refused to lift recently imposed restrictions on movements
of Chinese embassy personnel but agreed to release a,consul
general whom Indonesian army had placed under house arrest.
B. When'ambassador accused Sukarno of playing into hands of
Western imperialists,, president tapped ambassador on knee
and told him he needed no advice on that subject.
III. At conclusion of meeting, described to US ambassador by Indo-
nesian Foreign Minister Subandrio, Chinese ambassador looked
glum.
A. As they left conference room to face press, Sukarno said,
"Smile, ambassador, smile; They will think we-have been
quarrelling."
IV. Interesting sidelight on situation is Soviet ambassador's plea,
as reported by Subandrio, to "keep me out of this."
V. During last few days, two new developments indicate issue will
be kept alive.
A. Indonesian Government declared Djakarta a closed town for
aliens wishing to enter for permanent or temporary residence.
Decree apparently aimed at Chinese.
Ratification of Sino-Indonesian agreement abolishing dual
nationality has been postponed indefinitely--by which side
is not yet clear.
2 -
Approved For Release 2002/11/19 : CIA-RDP79R0089OA001100110005-8
 Approved For Release 2002/1 : CIA-RDP79R0089OA001100110005-8
25X1X6
Indonesian navy allegedly piqued over new Peiping maps
claiming Indonesian islands of Natuna--off northwest
coast of Borneo and within hundred miles of Chieom Spratley
Island claims (already disputed by South Vietnamese,
Chinats and private Filipinos).
Approved For Release 2002/11/19 : CIA-RDP79R0089OA001100110005-8