v 11 we Limited Use t 11 LIMITED OFFICIAL USE OF STATE mm BANGKOK HUNG tors mm mun smwoss mm SURABAYA Amenbassy NAKAMA May 10 1967 Visit of the Greater San Rancisco Chester of Comer-cc Pacific Trade Kission to Indonesia A 633 Section B Department's CA-5230 January 16 1967 x C Djskarta 3417 January 25 1967 FOR macs roomsmaruy kg DECLASSIFIED Authority 501% After brief visits to Bong Kong Bangkok Koala Lunpur and Singapore the Greater San Francisco Climber of Comrce Pacific Trade Mission ar- rived in Bjakarts on April 18 1967 for a week's stay Host of the masters departed on April 25 to return to San Francisco The coordinator of the Mission was Mr Thomas 0 came Hanager World trade Depart-ant Greater San Francisco member of Comerce The twelve other members were executives of as many Mei-ices companies whose activities included trade in agricultural comoditiss capital and consular goods and lumber manufacture and export of prefabricated buildings food machinery electronic and telecommunications equipment chemicals dredging equip- esnt and aluminum banking and accounting and auditing services The official program of the Hission included briefings by the Ambas- sador and key more of the Messy four general meetings attended by over 100 people each individual meetings between each Mission neno bet and appropriate Indonesian businessman executives of state corporations and of cials calls on Presidium Minister Man and the Minister of Trade General mm Damdirjo four official receptions two hosted by the US side and two by the Indonesian side and a press conference This first US Trade Mission since the policy change of Indonesia received a red carpet treatment res the GUI and the business leaders here It also LIMITED OFFICIAL 515167 ECWd DMcCusker Limited Of cial Use A-SZI ckarta LIMITED OMCIM U58 2 enjoyed good press coverage considering that the newspapers had to devote considerable space in their four pages to the Chinese-Indonesian riots and demonstrations which coincidentally occurred during the Hission's visit The timbers of the Mission told the Messy that they had been satisfied with the results of the visit here and that they had acconplished their various purposes Practically all intend to follow-up on the discussions they have had with business counterparts and they expect to develop tangi- hle business with Indonesia within the limitations inherent in an Industry-Organised iesion the diverse interests of the authors and the relatively short period of the visit the San Francisco group's stay in Indonesia was in- strumental in promoting US exports The Mission was generally successful and had a favorable short-tern impact here Its long-term impact is less certain however The visit was cer- tainly timely and the group proved to he a favorable factor for more cordial relations between Indonesia and the United States The lS-naber Greater San Francisco Chamber of Comerce Pacific Trade His eion arrived in Djakarta on April 18 1967 and officially departed on the 25th 1 ADVANCE 33062939111 TEAM the Advance Programing Team lit Richard rim-mm Trade Missions Divi- sion Department of Cos-arcs and Dir Harcel Vin ESSEN Assistant Manager World Trade Department Greater San Framisco Chester of Comoros spent the period of Ketch 26 -n30 1967 in Djakarts They were briefed by the Messy and participated actively in two special meetings with the Indo- nesian group responsible for the arrangements of the mssion'a visit During their stay here a schedule of the Mission's activities in Indonesia was prepared and approved by all concerned The and Indonesian business leaders were cooperative and forthcoming However not surprisingly the program had to be altered in subsequent weeks prior and during the His- sion's visit It should he noted however that this did not affect the success of the liission 2 MSW Ems A Coordinating Body node-up of three Directors General foreign trade donestic trade ad trade promotion and the Director of Foreign trade Re- lations of the Department of trade and a representative of the Department of Foreign Affsirs was appointed to coordinate the various activities con- nected with the visit of the Mission OFFICIAL USE A621 Djokorta US 3 An 18-min Indonesian Conutcrport Team with of tho vari- Indonesian trado cad occmic osrociotiono had responsibility for tho oora dotoilod uith tho iosion It woo hackod by our a hundrod Indonesian officials and businessmen roferrod to or Aosiotahto to tho Io- Countorport roan A opocicl kit containing very infatuation woo provided tor oach cantor ot tho out-loan 1 The air-conditioned auditorium of tho c'rc Iuildin in Djokorto with oit- ting upocity of about 300 on oot aoido for tho gonoral outings Micro- phones uoro provided A oocort providod for tho unto of tho iu Djakorto 3 EERS mm Booidoa Hr Tho-a 0 Coylor loans world trado Depart-ant Croator 8a lraacioco Clio-bot o Cmrco tho tvolvo othor on voro oxocutivoo of as how America companion activitioa iacludod trado in agri- culturol condition capital and coasuaor goods and labor 6 nonfat- turo and oxport of protohricatod huildiua food chicory oloctrooic and tolocmicatim equip-out chouicalo drodxins quip-cot and aluaim honking and accounting and ouditins oorvicoo A coqloto liot of tho moro thoir pooitiouo cod coups-Iv affiliation in attachod an on- cloouro l a or m amms no official program of tho vioit oneloouro 2 includoda briofiuso by tho macador and key unhoro of tho Many 0 four louoral outings attended by over a hundred pooplo oath individual nootioga hotucoh unbora of tho ood opproprioto ox- ocutivco of Itato corporatioua and ofticialo calls on Prooidiuo nio- iotor Adan Holih and tho liniator o Trado Gonorol thari baldirjo our official reception two hootod by tho US oida and two by tho Indo- ride and a cooforooco o a gg lgic qvg no undo with tho for an hour tho mrairfolitical oociologicol and ocoaonic oituation in lhio vac followed by hriofiogo by tho loproaoototiuo of All tho Counoolor for Political Aifoira and officoro of tho Soctiou h Corn-3 Hectim tho lira moral looting vaa hold on April 19 Ito Iain to introduoo tho on of tho 'l rodo to covor ito oonoral purpoaoo and to aoquaiot Ioro fully tho oido vith tho in- torooto of oach individual labor of tho 033133 97 0 3 3 3513231 4 The three subsequent general meetings were chaired by three of Indonesia's top eccaoaists all educated in the United States two of when are masters of the Group of Economic Advisers to Acting President Suharto and the Pre- sidiun and the third Dr mom Director General of Marketing and Trade Protection Department of Trade Dr Soehroto is in uential in lrdonooian economic and trade letters and is considered as a umber of the inner group here the striking note of these meetings was the candid way in which the economists and other Indonesian officials covered past mistakes of the the ready admission of Indonesia's current economic shortcomings and the need and sincere willingness of Indoaasia to receive and accept foreign bi- lateral and international aid particularly capital and technical assistance fro- foreign private coupanies as well as the 091's deoiro to improve con- ditions of foreign trade and investasnt in this country They answered all questions frankly and constantly be second meeting held on April 21 was chaired by Dr Ali um and use devoted to a historical and current survey of Indonesia's economy as covered in detail the deteriorating trend of the economy from 1960 to 1966 Be stated that this had been caused by government interference and control of the country's economic activities through-direct management of corpora- tions State entarprices allocation of nsmcec and cornedities and tho increasing government subsidies uni-ch rose from less than 1 percent in 1960 to 15 percent in 1966 of total government expenditures he then explained the Government's current policy of ecstatic in ation uhich has been ra- duced from a rate of 60 pore-ant prior to October 1966 to an esti- Isated 3 8 percent in larch 1967 of rehabilitating the existing production facilities and of expanding the economic base towards increased output and exports -- all hopefully leading to a higher standard of living which he stated had actually doclinod in the last av years iron its already ex- tra-sly low level lrofeasor llchenaed sum the author of tho initial test of Indonesia's foreign Invest-ant lav chaired the third nesting on April 22 lie explained the various provisions of the Foreign Investment Lav the administrative lechanisn regarding foreign inverts-oats in Indonesia and the Government policy for such investments He said that he was aware that the law was not perfect and stressed the Warmth willingness to amend it in the future after it has had the opportunity to acquire more experionca with it and to identify the areas of needed change 8a are in the process at adu- wrulu soee w 0 308118 m hott coliasa he declared ls stressed that foreign capital alone vac not enough and that foreign nan- skills and technology were Just as inportant That is uhy foreign loans did not completely suffice to satisfy ludonaaia'a used to improve and expand its econolsy Baldi stated nore than once that the Gal would examine each foreign investment proposal with an opon rind and would endeavor to introduce as nick exibility as possible to meet the dosidarcta of sound investors In conclusion he said that the economic policy of the 691 was in a state of continuing evolution A pragmatic approach was being followed - -CI b521 n5 ahsrte ax not 5 As problems or meknesses ere identified he felt certain that corrective assures would be taken The fourth nesting hold on April 24 was chaired by Professor 903311010 with the assistance of other senior officials of the Department of l'rede It dealt with trade he stressed the importance of foreign trade to Indo- nesia Two thirds of the government revenue was derived from trede line itens rubber petroleum coffee tee oil nineral ores etc repre- sented 90 percent of total exports Indonesia's present export pattern was divided es follows 67 percent to Western countries 21 percent to Restore countries ll percent to other Anion countries end 1 percent clutter-e lie gave brief survey of the country s international trade in recent years he said thet besides rice of which 670 nillion worth 988 to he inorted this yeer ledoeesia's import priorities were materials for the expert industries spare parts for existing equipment sud machinery for the re- hebilitetion of the textile industry To encourage exports further the use now considering an increase in the port of foreign exchange kept by exporters A new tariff policy was under ectine study He iqlied that it will be protectionist in order to assist domestic production including thet of the cottage industry hov- over he towered the above with the statement that Indonesia intended to concentrate on domestic production only on long as such production was sound It would rely on imports for other goods Dr Soehrote's presentation stressed the export side note than other facets of foreign trede he admitted that the trade mechanism wee still cusdaersone and needed sisplificatien The on use working on this question c guduol wam With the assiotance of the end the use each nether o the Mission hed the opportunity to discuss specific letters of interest his firn with several businessmen officials The liission ushers told the Eubessy that they had been satisfied end felt that they hed eccoqlished the min purposes of their visit d Cells on In ow-anion Officials 'l he Hasty arranged cell on Foreign muster Edith this proved to he Itch more then a courtesy visit the nesting lasted en hour Helik stressed the policy outlook of Indo- nesia its desire to expend econonic end cultural relations with other countries and its awareness of the importance of foreign trade end private investments moi Sadli set sort to hie lie candidly ednitted thet there were still nany deficiencies mering trade our investment here that Inde- nesia did not yet possess adequate knowledge and experience to inpleaent its liberel econonic policies referred to the shortage of trained person- nel and begged for petience and understending he added that the on was anxious to correct these deficiencies and use leaking efforts towards that end he expressed the uish and hope for mended economic relations between Indonesis end the United States he use frank ansners to several questions and node an excellent inpression on the group U93 Ansaz Ejokexto azu'E-th aroma of i mists of Izr-edo As rori who was atteu ing rubidium Which incidentally lasted from 23 to until 3 in the moron- 3 of far the union hookers were rocoiv-a-d by tho kero- @31131 01 52152-1 who wazo by u-vozmi senior offi- iolo lie e a o-gi and for the 212' sister's absence our discussed tno govemr-ont of the last six north to ezzcouraao ti c ezwmaion of Indonesia foreign trade In reopens to quootiroemo explained the various Estate of the occimim in Indonesia and offered c no whr-lehcert-ad ossial orce of the Department of Trade to insure the cuccese of the ssion o __Tg_qcyf c__pg Ari-uosadox and 111-3 aroma game reception on Anti is ttl LLS-t lice attached o3 ooclcuuro 3 which was attended by large tau-ricer of senior Indonesian business's-on end ochzr per-m who could be useful to tho so asioai cadre 1512 10 12 1- of $2 133 Astor-i gave a in honor of tI-o Kiss-Lon on April 21 at Maid eight Rainer uom pzosort including minister for tho Economic and financial Sector Sultan Kwanzaa Euuono Lb the iecegtion of the Indonesim Courtenost Team was bald on April 22 end it too included may senior officielo end ominous leeicra but to loner extent than tho other throo Saturday ore- 112 being an unfavorable tire for racqutiou Tho ssion itself was tllo heat or taco-grim bold in tho reci ence of tho Bmamyw Economic Counselor 12 Paul D FoCua'wr co April 24 gums lint attached no enclosure 4 master Asher and can prominent officialo ood personalities more present L oanoodor Green encoded auroral Aa-tiieri'o and the Mission's reception April 23 the reporting officur gave on micro-cl reception in his 1031 demo which was limited to the centers of the mission and key of-Eicoro of the Enbaoey ioclo iug the Esf-hrosy o Ire oty Chief of mission for of matters of interest to the San Francisco grow f Tweaks to the efforto of the kbnocy'o Information Officawi- reso Attache his Deirdre Mon about 40 kimono newspaper- mo end forum correspondents otterdcd grass conference given by Er Gaylor end the neat-ore of the Hinton on tpri 24 It sowed to clarify may puin co of interact end produced satisfactory reunite A press rcleeoo enclosure 6 woo distributed at the and of the conference 5 ow 1 2235 1 03 Hr Coylor grosonted oo hobo of the Creator 3 53 Frencioco Coolie - of Comm-co doom-eta plequeo of honorary cachet-chip in the member to moisten rank end Asher-i as well on the Choimao of tho leotez'ian Cmmterpart ton Coioral moo Iona- 11 They were rewind with plusant surpriu ood appro- ciotioo 1 rm pr me I use I mo-Ao- a a i Tho Music-n had ciao human 3 bmuti Cal caso containing a giltcd reproduc- tioo of a 5 12 cans car rod on eogravad plaque oxpreswts it roogecti ul appreciation to Canard Suharto It woo not possible to pre- ocnt it directly to tho Act-in Proud- rt 'I no kiciotor of Trade Goneral Az hori agrveod to pose it on to General Suharto after tho derorturo of tho Hi onion reporting of cer dclizrnrod it to tho nag-armors of Trade for the otoro tut-1393c and we are lz-rpoml that mural Suharto will also a let- ter of acknowledgment which we will transmit directly to Mr Gaylor in San Francisco 6 CF PS 31 312 attain tho limitations inhorcat in on In retryuOrsnnixcd Governmentalpprovod mum the divorce interests of its when and the rolatiuly ahort period of its visit the 5m Francisco group's stay in Indonesia woo ia- ot'mwnotol in mting US exports It should to noted that econ uemboro were interacted in imports from Indonesia others in investments ia htnlireg convicts and snort-wt in atomistic end auditing eorvicea Hov- ercr thoco interested in super-3a opeui cally told too Ruben that tho averted their visit to lend to bassinet-s transaction 1 151353 55 1- may- The visit of tho San Francisco Hist-ion was certainly timely It unto the first 1's trodo riot-ion to come to Indonesia oinco tho abortive coup o Septot-bor 30 19135 and tho change in policy end attitude of tho Induction leaders It arrived at a tit-o when the offecte o tho revere soroth masons tel-too to iaqrm the general health of the ocean-y had already ohm-m tangible favorable results Ito vieit also coincided with the developing trend of 1036 direct inwivuoct by the Government in day- toudcy Operations of twins and in more scope being offered to the pri- vate sector while the Hiroion because of the iotorouto of ito individual mat-on not have a maimed concentrated thruot with rosord to a par- ticular sector its cporoprictcnou if tho desire of the American private buomcao may to cspond economic rolotiona with Monocle io or ioportrot criterion can also to consider- l satisfactory The only question we have concerns the cidition of a representative of a CPA fire Inc likelihood of its bozo active in a country more the great majority of buoinooma do not stick to educative and occurato bookkeeping for tax and other reasons appears oorerhat relate However no viah to rate it cloor that Hr Katha J Eviction of toucho Ross Bailey and Smart did participate actively ia the work of the Mission and not generally help- tul to ite out-roll ouccosa Ho told tho Robot-y that tho for contuto we were able to arrange for him may prom c value to hie firn orig-5 m - l he I-uol-I A2521 l jun 32m 1 541 m7 8 -- - I-houu 3- gm if to mung he short-tote impact of the San Fraction group visit was substantial and favorable Practically all imyottant ere-grants c the Indonvciao busi- tenacity and the govenuacnt ngmcics was exposed to it It served to focue the attention of theta po pla on the pom i ilities of trade with the United State and investments ty American coat-0 21193 Scores at 6'3 officiale and business leadcra were givrrn the opr-oztunity not only to get a clearer View of the ways of doing mutually ptofitar-le business with the United States but ec-ncclat more in-pcrtaut in In ows-loo con- text the visit of the fisniou forced them to take a fro-sh look at tho economic problem facing this country and the head to ta n q ptopd8t0 action to solve than or at losat to take the-a more aromatic to solution in the future the Illusion had a fairly good and copious prose com-mac Undoubtedly much Iota space would have been devoted to its activities in the not-sapapcro which are limited to four pages were it not for the Chineseuls'y onesian violent damnation in Djakorta which occurred during the tine it was here 3m the demantratimze which were in no way connected with the Minion er the Unit Statee for that matter did not interfere with the elaborate program out for the Sea Francisco group the lonsatom impact ia less certain again because of the inherent limita- tiooa of a of this type However some optimism that actual foreign trade transactions will take place and pow ny invest th will materiel-lee appears justified The effect of the visit of the maniac as a catalyst to expedite consideration by the Indonesians of trade and investment impedi- ments on valuable at a time when the Indonesian leaders are sincerely trying to tackle these problems a 223m 02 13am 3 2m 2 2 11 101 he visit to Indonesia of the Greater San Francisco Chanhcr of concern Pacific rude was generally euccoas ul lit Gayle proved to be an able leader Be wee tactful and articulate with the All the letters of the Minion willingly follows the mazes in of the Embassy and each individually contributed to the useful purposes of gonoratlo added iatereet in expended trade and economic relatives the United States and Indonesia they all made a good impression on Indonesians and Molly enhanced the lease of the American businessman have Hisaion arrived here during a period of chemo with ragntd to Indonesian private organizations The Consultative Body of national Private gum Ff A Unify-1'1 a 9 Enter-prince comma thich re ect-1 pri'vte trade organizations since 1965 end which notwithstanding ite war was an instrument of the Governnont had bean grsdually dicta-ding cit- 2 tho charms of Imiwosian policy rcoulting from 21 1 abortive Cmrmirt coup of 15-63boing ebolishod In its place two strictly private organizations were being established end are still at the eta-go of formative comittec tinge end maneuvering by many irdivislualc and groups for control 'ihcre Itch controvorey on the Indonesian side as to who would bo tho ot ciel hoot of the 8m Frencioco Mission as well as to the membership of the hoot group In View of tho loci of cmmensun the mpartimt of trade bod no choice but to trko the Ionian-ship end do the boot it could Int even ofter this point had been oottled melanoma continued on the proposed program end intividonl feceu 02 the arrangements Indicative of the ohm it tho fact ti ot the nal decisions raga- ting the definite pro- gran of octivitiee o the Mission end the roles of the various Indonesian participate wore homered 6m in ton 14 at 7 30 pm on April 18 1967 just few houre before the arrival of the Motion ec- cording to reliable Indonesian sources who were to result of the ohmic coordination between the Indonesian and the Messy end tint- 1 approval of the progaza could not be completed before the erriwl of the Hinton He foam it necessary after coneulto- tion with tho Mission zoo-born following their crrivzd er the hotel at mid- night to suggest changco in tho cchc oio e9 veil no the uncalled private lootinge eot by the Indonesians It thould to noted that the letter oc- ceptod our with very good graco and without dif culty or any kind of he lock or experience on the port of the Indonesian organizers end their mrreotod optioin that their origin pug-rm scold to accepted et the Hinieteriel Iml since the Deportunt of trade was acting on coordin- tor oech eono difficulties - thio 1063120 their sincere good- will end onthuoioce to do the boot thing passion according to their own lighte Mr from the time of tho min of the motion which was val-coma by the labor of the deoneoien Counter-part Icon and the reporting of cer at the too of the airport until its departure on Lprii 25 1961 which no oleo et the cone piece and uith or even greater ember of Indonooim notvithetending the eeriy houro of 7 tho corciiel semaphore end mutually reopectud relotione no oil concerted prevailed In eulogy the See Rancin trade motion prov-co to be favorable factor for are friendly relations betvoen Indonesia and the Unitei Stature 1 33m om A421 Dj that Hi3 12 21112 1 In View of the e -acial cum 13 21 13 in Ic-icnecia ch question of recommenda- ticaa for fut- 23 Truie Manic- 13 will in the nut-th of a pa-mt nitgzan r-T 11'- m rm LII EnclosuresList of ruuhero of the Greater San Funisco Chain of emu Pacific Trade 32133120 Pros-van of tho NZ aion s activities in Djakarca Gum List of tin Mimos az'u reception 5 caries Guess 1 23 1 of the hits-lion s Rueption 5 copies 5 2122910 Invitations to the ssion Reception 5 copies Press 801935 April 24 1967 5 captes Kit Ma'srihuced by the Indomslan Sid to Each ssion cube 2 58 3 OFFICIAL 53 1 5 6 7 l 10 11 12 13 Encl Ho 1 of A-SZI Djakarta uvv' r- 122' 0F Izpmm OF TILE Kai-U233 Sf OP mama THLTE 15 le Mouton- llama 0 cuter musk 80 15 Trad Iii-pungent Create San Francisco Chuber of Cometce Howard loom 121310331 hunger Cavgin Inc 1111 J 81110 Vic Pruideut International Department Cracker-Citizen Bank Co Sellout Director of Plantain and rave-1031mm Inamtionsl mentions Industries Hillia- Groum Hanger Soutimnot Asia Sales load Hanhinery Corpuration 3 0th rurun Put In lung's oat mothers lichul J Ericsnr President Inzernaticsnal Building Products mart loch Director of Corporate Planing Raiser A1an Interna- timl John lam llamas-3r Salas Ito-totals Quali cations Inn-mum Inc Harold Roda glans Pacific Coast Engineering Company 3800 Iocu reside Puific Vegetable Oil Company mu 3 Cook Vice Pruidc-nt mutational Division Staffer amnion Conan lath-n J Friedman Pal-cur bud- 9 Ross Bailey 3 87m mg rzz yg Enclo an 2 o AC '13 11 521 a D5 O - Indaneaia V15 it of The create 81 Francisco Chad of Camera a- 1 - MW 3 hril 2 20 55 hart 1 08'00 - 09 33 10 03 10 30 11 00 13 00 AFEIEOCI 13 30 - 20 00 Ear- daz 9 16 11 And 21 09 00 10 00 - 12 00 13332100 19 00 ne if Trac a Malian Agra 13 - 25 1967 Arrival of the mute by THAI Mam 403 from 81mm hash of tho Kin-ion at tba v 3 Embassy Coax-my can on 11 3 tha manta of Ma Ma pa Mc General Session Briefing by Hinton at 6 2 0 Building 94-96 Kraut nan Individual Heating Inception by 11 8 the Ambassador of tho United Scataa of Anartca and at no 3 Tuna Suropati 1361 1 301 3% individual matings Can an mum- muau mu General briafin by Indonaian prarta at 1 2 6 Building 94-96 Inna Raga Individual V-aatinga Reception by 11 1 tha Minister of had and tin D hart a Uta-a Hana Djalaa than 33324 A1511 22 09 00 11 130 imam 19 00 - Emir-1 1 3 18 00 Maria 31 11 24 09 00 - 11 90 16 00 - 17 30 18 30 - 20 00 22mm Arsin 25 07 00 Enci Ho 2 o - - Huodn- - meeting on at 0 1 0 Building 9 2-96 Kraut nayn Indiviiuni Mutiny Inception by the Indonesian manure Team a C T C landing 96 Kraut Rays no trout-n Sight Suing Informal Isa-pains by Many Main Office 1th A mm treating on India at 6 2 6 landing 9%96 Eran lays Press Contention Raceptioa by ch Hisoioa at lo 59 Djalan rm that and and 0 official activizies Max-cur o Illusion in Djahru                     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