INDONESIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A000800070029-1
• Release Decision: RIFPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: December 12, 2016
• Document Release Date: January 4, 2002
• Sequence Number: 29
• Publication Date: May 22, 1957
• Content Type: BRIEF

L
Approved For Release 2002/01/30 : CIA-RDP79R0089OA000800070029-1
NSC BRIEFING 22 May 1957
INDONESIA
I. Top govt officials in Djakarta have now split on how to handle
the dissident provinces.
A. Prime Minister Djuanda, possibly influenced by Hatta and other
moderates, is advocating a conciliatory approach.
B. To date this has been opposed by President Sukarno, army chief
of staff General Nasution, and leaders of powerful National Party
1. Immediate issue has been the 18 May order--promulgated
against Djuanda's advice--relieving Lt. Col. Samual, anti-
government commander in East Indonesia (Celebes),Samual is
expected to ignore order.
2. Affair tends to confirm provincial suspicions that Sukarno
holds all real power and Djuanda is mere front.
II. In Central Sumatra speech Hatta strongly supported provincial demands
A. He warned Djakarta that Indonesia heading toward anarchy.
B. On the other hand, he described regional disaffection as a
movement aimed at the "development of the whole Indonesian
archipelago," and not as being "separatist".
III. Meanwhile, economic difficulties of central government are increasing
A. Over past months, inflation has become increasingly serious
problem.
B. Government revenue decreased by establishment of direct trade
between outlying provinces and foreign ports.
C. Promises of grants to provinces for econon4 development?'w 1d.
Approved For Release 2002/01/30: CIA-RDP79R0089ai4Y668b0'& 6
29=1
DAII