Indonesia's Ambassador Signs Reconstruction Credits with the Export-Import Bank
12 January 1951
Ambassador Ali Sastroamidjojo signed an agreement with Export-Import Bank chairman Herbert E. Gaston on 12 January 1951 covering $52.2 million in credits for Indonesia. The credits formed part of a $100 million program previously earmarked by the bank. The agreement set detailed terms for purchases intended to rebuild transport and other parts of the Indonesian economy. [1] [2]
The program allocated $20 million for motor vehicles, $17.1 million for railway equipment, and $6.7 million for ports, alongside roadbuilding machinery, telecommunications equipment, and aircraft for Garuda Airways. The financing tied Indonesia's reconstruction purchases to American equipment and services. Advances carried interest of 3.5 percent, with repayments scheduled to begin in March 1956. [1] [2]
Indonesia's Parliament approved the January agreement through Law No. 11 of 1951, dated 10 July and promulgated on 1 August. The government was responsible for distributing financed goods among public bodies and private purchasers. [2] [3]
Related Diplomats
Sources
- The Secretary of State to the Embassy in Indonesia, 16 January 1951
FRUS 1951, Volume VI, Part 1, document 321, pp. 586-587; File 856D.10/1-1651, telegram 728, Eximbank release scheduled for 17 January
- Republic of Indonesia, Law No. 11 of 1951 and attached Export-Import Bank agreement
Law, articles 1-2 and enactment block, p. 1; attached agreement, articles I-II, signature block, and Appendix A; agreement Article XV, PDF p. 14, domestic ratification requirement
- Supreme Court of Indonesia legal register, Law No. 11 of 1951
Tanggal Ditetapkan and Tanggal Diundangkan fields
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Cite This Article
Indonesia's Ambassador Signs Reconstruction Credits with the Export-Import Bank. Chanceries Diplopedia. Record c5ef9fb3105678360975. https://chanceries.org/research/history/indonesia-eximbank-agreement-1951/