425 Embassy in Washington to Department of External Affairs

Cablegram 1297 WASHINGTON, 21 December 1948, 7.29 p.m.

IMMEDIATE SECRET

Indonesia United States Government is still considering suspension of E.C.A.

aid to N.E.I. Decision is expected within next twenty-four hours.

2. E.C.A. at request of State Department took precautionary measures several days ago. No procurement and reimbursement authorisations have been issued by E.C.A. for N.E.I. during December, and only 200,000 dollars for week ending 1st December.

Previous authorisations were averaging over 5,000,000 dollars weekly, total to date for N.E.I. 61,790,958.

3. Figures of amount actually shipped are not available but a substantial proportion of commodities authorised are for first and second quarters of 1949. Suspension of authorisations, while significant, does not therefore mean any immediate reduction in flow of commodities.

[AA:A1838, 403/3/1/1, xx]