Foreign Service of the LEGRAM United States of America OUTGOING AMEMBASSY DJAKARTA 2w 3 #7 v CONFIDENTIAL 2 eggs Charge Embassy Classi cation Control 5 A CHRON CONFIDENHAI Date Nov 1 1965 AME 8 PM ACTION T0 WASHINGTON 1290 RF POL INFO AMEMBASSY MANILA 367 POL MANILA FOR FELG ECON FbifllJ 1 General I a In contrast relaxed situation Central Sumatra Embtel 1272 LabAtt visiting Palembang S Sumatra Oct 28-29 found atmosphere tense Reportedly 600 communists already jailed and arrests continuing Top SOBSI officials at both Shell and Stanvac refineries and at PUSRI Fertilizer Plant among those picked up Some domestic ser- vants of foreign staff at both refineries also arrested Local staff both companies voluntarily remaining indoors at night Stanvac foreign staff forbidden to visit Palembang City as Army and police contacts say skirmishes occurring among communist and anti-communist elements b Maj Gen Ibnu Sutowo Minister of State for Oil and Natural Gas Affairs inspecting CONFIDENTIAL #3935 1 t' Egg REPRODUCTION P8413 tunic address mm to til Den-mum can be damn if lrnjoAu o the classi cation 0' the DECLASSIFIED - - - mum Type By hath am the alarm oak the anal number and in envelope lurid Authority Mly I Foreign Service of the United States of America 0 I AMEMBASSY DJAKARTA 3 1 55 CONFIDENTIAL Charge Embassy Classification Control -2- Date refineries Oct 27-28 warned both managers if communists turn to violence their installations will be focal points of attack as means denying government foreign currency earnings and gasoline on which military and economy are dependent Army security guards increased by Ibnu to provide better protection against sabotage Shell official told by Indo authorities Army found lists both of per- sons communists would butcher and those assigned to do the butchering Former list said to include no foreigners but both military and civilians including some Shell Indo staff Latter list included two Shell-employed security guards 2 Stanvac Most a Americans in area are Stanvac employees and dependents 46 families most at refinery Sungaigerong others at Lirik and Pendopo fields Sumatra Manager Tongish desirous of reducing number dependents Plans underway to CONFIDENTIAL UNLESS REPRODUCTION Classi cation mom nus copy 15 nor AUTHORIZED single address messages to Doctrine no he punch nomuiate to tilt destination a u mum without 1an By Punch mar the ame ooh the soul number much in envelop- lurid hr Jill-I TED Ed SEEM Foreign Service of the United States of America OUTGOING CONFIDENTIAL Charge Embassy Classification Control Date bring all families into refinery camp and employees not discouraged from returning dependents to point of hire and collecting separation allowance b Tongish reported Gen Ibnu feels one type of sabotage could be incidents against foreign staff which would both discredit Army and disrupt production 120 additional Army troops being assigned as security guards at Ibnu s direction Six families four American two of 3rd state nationals departing immediately German and Swiss employees old enough to recall WW II and subsequent communist activities in Europe also appear on verge of leaving There are 11 families of 3rd state nationals at Stanvac c Army has picked up about 30 Indo employees including all leaders communist oil workers union PERBUM Some domestic servants and or their relatives living in the camp were also arrested Indo personnel manager at Stanvac and Dutch Shell officer both feel enough PERBUM leadership picked CONFIDENTIAL UNLESS REPRODUCTION Classi cation mom nus copy xs nor AUTHORIZED le-addms messages to the Department can he dmrted te pouch appropriate to the classi cation e the Image uitheut roll mu retnml- Type Iy Pouch utter the address all the seriel number and peach in intone cartel For lei-$5 TELEGRAM ll Firtreedi 23 a8 tear i te Ant etrhi a OUTGOIN AMEMBASSY DJAKARTA 5H5 CONFIDENTIAL Charge Embas sy Classification Control -4- Date strikes up to prevent launching or slow- down but that not all hard core communists yet arrested so potential for sabotage remains Each official independently estimated another 50 to 75 were such individuals still at work d To reduce further opportunities for sabotage Gen lbnu considering Stanvac plan whereby excess refinery employees at least 1000 out of 3500 see Emb A-527 and Dec '63 should be trans- ferred to makedwork projects outside refinery area leaving remaining workers much more easily supervised e While Tongish working hard to reduce number total foreign dependents minimizing if total evacuation necessary he does not intend relying on USG assistance in evacuation since always six to ten ships at least half non-Indo loading or waiting to load at refineries Assuming Indo military forces friendly especially Air Force - would be and Navy relatively simple and safe CONFIDENTIAL UNLESS REPRODUCTION Classi cation FROM THIS COPY IS NOT AUTHOMZED usm luddveu nemaes to the Department can he diverted tn pouch epmaiete tn the eleulnnt on at the than retyomt- Type Peach utter the address out the seml nunhev end pouch envelope lurid Aw TELEGRAM ll IF g8 a8 tear i te Ant etrhi a OUTGOING AMEMBASSY DJAKARTA CONFIDENTIAL Charge Embassy Classification Control -5- Date you A 3 a Two American employees in foreign staff of 20 both have wives with them but no other dependents Fifth American is wife of Dutch employee Unlike Stanvac neither the management nor Americans were concerned over Indo political situation Latter not considering send- ing wives home Shell imposed no restrictions on travel to Palembang Management now Dutch most with many years Indo experience look for favorable trend in future Thievery not sabotage they claim is main problem Gen Ibnu s contention that recent refinery fire was sabotage they categorically deny They confirm production not affected by fire since what crude Pladju couldn't handle because of accident Shell refinery in Balikpapan did By mid-Nov all damage caused by fire will have been repaired On Oct 29 40 additional Army guards had been assigned to Pladju b 24 PERBUM members picked up by Army at 35 the Pladju refinery and Ixiat Prabumulih oil fields CONFIDENTIAL UNLESS REPRODUCTION FROM THIS COPY IS NOT AUTHOIIZED 03ml address Imam to 0 0091mm an he nd a min comm a classi cation a the null aim up ntm - Tm hath me tin alums uh the will Ina-bet and much in umlm mm For 0011 Foreign Service of the ELEGRM United States of America OUTGOING W53 DJAKARTA CONFIDENTIAL Charge Emba ssy Classi cation Control Date In Shell two domestic servants were picked up but here again the Dutch were complacent Army respect- fully told Dutch official his cook was suspect and would be arrested But not till after lunch said Dutchman I'I've a big party planned Arrest made after lunch 4 Oil Company Relations with 601 a Both companies are hampered in their operations by 601 supervisory teams Any tendency towards a responsible attitude on problems brought up by the teams was strenuously fought by union members even though PERBUM no longer represented However teams have not interfered in personnel management or labor relations matters as much as could be expected Both companies report teams' major preoccupation is securing more prerogatives for their members b Stanvac officials in Sumatra believe the coup and subsequent events will have no effect on progress of negotiations with 601 on sale of refinery CONFIDENTIAL UNLESS REPRODUCTION Classi cation FROM THIS COPY IS NOT AUTHORIZED - dd or to the Department can be pouch apmnriate classi cation a the message without an sly Pouch alter the address call the serial number Ind much in undone and For 0011 mu tM Foreign Service of the ELEGHRM United States of America 0 0 I AMEMBASSY DJAKARTA CONFIDENTIAL Charge Embassy Classification Control -7 Date feeling the Army is sensitive to possible criticism should it attempt to alter or slowdown takeover plans Shell management more optimistic hoping for return to a rational approach recognizing the importance of foreign management in maintaining production levels 5 PUSRI Fertilizer Plant Two Americans employed under 601 contract with W C Shroeder Co One employee has wife and daughter at plant Con- provides tractor no separation plan and employee not considering return of dependents Indo labor force 1300 of which Army has arrested 15 SOBSI union leaders 6 Contingency Planning for Evacuation Stanvac agreeable to serving as focal point thru which Emb can maintain contact with Americans in Palembang area Choice natural since refinery has continuing voice radio contact with Djakarta office close to Embassy Company's Sumatra personnel chief accompanied LabAtt CONFIDENTIAL amass REPRODUCTION Si le address messages to the Department an be dawned tn pouch appropriate to the clusincetnon the usage with r8413 new Type Pouch utter the Maren the sen-l number an pouch In envelope lurid Fer 91 55 1 35 Steer igte Aonf1 etrhi a OUTGOING AMEMBASSY DJAKARTA CONFIDENTIAL Charge Embas Classification Control -8- Date on visits to American employees in Shell and PUSRI If evacuation necessary Stanvac could not only pass mord thru community but help all Americans to find transportation aboard tankers GP-3 GREEN I I POL EEMasters l- 4 CI 2 Clearance us er in draft A 11 1 65 CONFIDENTIAL amass uncussman nanonucrlon Classification mom nus copy IS NOT AUTHORIZED Single mm lemurs te the Deanna an be inverted te Bench Immete to the classi cation 0' the unseen them Oil m Tue Iy Pouch alter the dams elk the will number In envelope send' Fer 3-1-55                     National Security Archive    Suite 701  Gelman Library  The George Washington University    2130 H Street  NW  Washington  D C  20037    Phone  202 994‐7000  Fax  202 994‐7005  nsarchiv@gwu edu