SOVIET RUBBER PURCHASES IN INDONESIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A000300350002-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: November 9, 2016
• Document Release Date: July 20, 1998
• Sequence Number: 2
• Publication Date: February 17, 1949
• Content Type: IM

Sanitized - Approved For Relea
INTHyLIG 0Z M U1 fl1M ND. 134
StBISOT= Soviet Ribber Purchases in Indonesia
1. T1w rubber situatioA in o.
Most of the rubber plantations of Indonesia are located
on the islands of Sumatra, Borneo and Java. before the Dutch
"Police Action" of December 1948, approximately 25 percent of t
total rubber production in Indonesia came from term nt under
the control of the Republican Government, but since that time at
of the rubber-producing areas previously under Republican control
have been taken by the Dutch. It is pertinent to note, however,
that the Dutch maintain firm control is the urban areas of Java
and Sumatra only and that continuing Republican sabotage may
effectively deny them the production of these areas.
2. Ste rubber purobases in Southeast Mia.
In July 1943 a one-year trade agreement was signed between
the Netherlands and the USSR which perattted the t to'the
Soviet Union of 18,000 tone of natural rubber. It is estimated
that 5,500; tons had been shipped during 1948.
By far the greatest proportion (almost t of the
130,000 tons of natural rubber purchased by the USSR in 1
origi-
nated in Mal , and were the result of an agreement between the
USSR and the t1S which became effective in Deoembo 194 Siam
shipped approximately 10,000 tons to the USSR during 1948.
3. JEW,-.1ing from Southeast Asia to the SA.
Some natural rubber may be srm led to the USSR from
Malaya. Siam, apd possibly Indonesia. Despite, the Dutch blookade,
approximately 140,000 tons are estimated to have been sorted
from the Indonesian Republic duri 1948. This is crud., unprooeesed
rubber, most of which is sent to 3 re for processing. Some of
it, together with unlicensed shipments from Dutch-oontrollled areas,
is smuggled out of Ma1MVR by local dealers anxious to avoid s=ort
taxes and mohunge regulations. It is Le that some of it
eventually reaches the USSR. An unconf~rsport states that the
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Sanitized - Approved For Release : CIA-RDP78-01617A000300350002-5
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USSR employs small foreign vessels to carry rubber to obscuri
islands within a 500-mile radius of Singapore, and to reacts
points along the China coast, for transshipment to larger vessels
bound for the USSR. There is no evidence, however, that rubber
stockpiles are being built up in Bepublicaa-controlled erase of
Indonesia for direct shipment to the USSR.
4. The relationshi of_ to rubber stoclcpilina 25X9A5
In Indonesia.
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a no doubt that the Amerioan-
Indonesian Corporation is engaged in rubber stockpiling in
Indonesia.
Prior` to the December 1948 Vol- ice Action," the Indonesian
Republic was attempting to export as much as ;possible of the raw
materials in areas under its control. It is quite likely that
raw materials, including rubber from the Indonesian Republic, have
found their war into Soviet hands, just as raw materials from all
other areas of Southeast Asia may have been smuggled to the USSR.
There is no evidence, however, that either theRepublic of Indonesia
or the American-Indonesian Corporation has entered into-open or
covert economic relations with the USSR, or that any' smuggling
activities from Republican areas to the USSR'or to Soviet agents
has been sponsored by either the Republic or the American-Indonesian
Corporation.
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Sanitized - Approved For Release : CIA-RDP78-01617A000300350002-5