What is Past is Prologue.
Inscribed on the National Archives, Washington, D.C.
In Part One of this article (Probe, March-April, 1996) we talked about the early years of Freeport up through the Cuban takeover of their potentially lucrative mine at Moa Bay, as well as their run-in with President Kennedy over the issue of stockpiling. But the biggest conflict that Freeport Sulphur would face was over the country housing the world's single largest gold reserve and third largest copper reserve: Indonesia. To understand the recent (March, 1996) riots at the Freeport plant, we need to go to the roots of this venture to show how things might have been very different had Kennedy lived to implement his plans for Indonesia.
Indonesia Backstory
Indonesia had been discovered by the Dutch at the end of the 1500s. During the early 1600s they were dominated by the Dutch East Indies Company, a private concern, for nearly 200 years. In 1798, authority over Indonesia was transferred to the Netherlands, which retained dominion over this fifth largest country in the world until 1941, at which time the Japanese moved in during the course of World War II. By 1945 Japan was defeated in Indonesia and Achmed Sukarno and Mohammad Hatta rose to become President and Vice President of the newly independent Indonesia. But within a month of the Sukarno/Hatta proclamation of independence, British army units began landing in Jakarta to help the Dutch restore colonial rule. Four years of fighting ensued. In 1949, the Dutch officially ceded sovereignty back to Indonesia, with the exception of one key area - that of a hotspot which is now known as Irian Jaya or, depending on who you talk to, West Papua.
Authors Gerard Colby and Charlotte Dennett, in their book Thy Will Be Done, explain the situation in what was then called Dutch New Guinea:
To Westerners, New Guinea was like a gifted child pulled in opposite directions by covetous guardians. The Dutch clung to the western half as the sole remnant of their once-vast East Indies empire. Their longtime British allies, acting through Australia, controlled the eastern half. Neighboring Indonesians, on the other hand, thought that all New Guinea was part of their national territory, even if it was still colonized by Europeans.
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Dutch New Guinea, or West Irian as the Indonesians called it, was populated by native tribes not far removed from a stone age culture, such as the Danis and the Amungme. When Indonesia fought to claim independence from the Dutch, West Irian became a symbol for both sides that neither wanted to relinquish. It would take the efforts of President Kennedy to eventually pass control of this area to the newly independent Indonesians, removing the last vestiges of Dutch colonialism.
Indonesia experienced various types of government. When Sukarno first rose to power in 1945, foreigners pointed out that Sukarno's rule appeared "fascistic," since he held sole control over so much of the government. Bowing to foreign pressure to appear more democratic, Indonesia instituted a parliamentary system of rule and opened the government to a multiparty system. Sukarno related what followed to his biographer (now cable gossip show host) Cindy Adams:
In a nation previously denied political activities, the results were immediate. Over 40 dissimilar parties sprang up. So terrified were we of being labeled "a Japanese-sponsored Fascistic dictatorship" that single individuals forming splinter organizations were tolerated as "mouthpieces of democracy." Political parties grew like weeds with shallow roots and interests top-heavy with petty selfishness and vote-catching. Internal strife grew. We faced disaster, endless conflicts, hair-raising confusion. Indonesians previously pulling together now pulled apart. They were sectioned into religious and geographical boxes, just what I'd sweated all my life to get them out of.
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Sukarno related that nearly every six months, a cabinet fell, and a new government would start up, only to repeat the cycle. On October 17, 1952 things came to a head. Thousands of soldiers from the Indonesian army stormed the gates with signs saying "Dissolve Parliament." Sukarno faced the troops directly, firmly refusing to dissolve parliament due to military pressure, and the soldiers backed down. The result of this was a factionalized army. There were the "pro-17 October 1952 military" and the "anti-17 October 1952 military." In 1955, elections were held and parliamentary rule was ended by vote. The Communists, who had done the most for the people suffering the aftereffects of converting from colonial rule to independence, won many victories in 1955 and 1956. In 1955, Sukarno organized the Bandung Conference at which the famous Chinese Communist Chou En Lai was a featured guest. During the 1955 elections, the CIA had given a million dollars to the Masjumi party-an opposition party to both Sukarno's Nationalist party and the Communist party in Indonesia (called the PKI)-in an attempt to gain political control of the country. But the Masjumi party failed to win the hearts and minds of the people.
In 1957, an assassination attempt was made against Sukarno. Although the actual perpetrators were unknown at the time, both Sukarno and the CIA jumped to use this for propaganda purposes. The CIA was quick to blame the PKI. Sukarno, however, blamed the Dutch, and used this as the excuse to seize all former Dutch holdings, including shipping and flying lines. Sukarno vowed to drive the Dutch out of West Irian. He had already tried settling the long-standing dispute over that territory through the United Nations, but the vote fell shy of the needed two-thirds majority to set up a commission to force the Dutch to sit down with the Indonesians. The assassination attempt provided a much needed excuse for action.
The victories of the Communists, infighting in the army, and the 1957 nationalization of former Dutch holdings, led to a situation of grave concern to American business interests, notably the oil and rubber industries. The CIA eagerly pitched in, helping to foment rebellion between the outer, resource rich, islands, and the central government based in Jakarta, Java.
Rockefeller Interests in Indonesia
Two prominent American-based oil companies doing business in Indonesia at this time were of the Rockefeller-controlled Standard Oil family: Stanvac (jointly held by Standard Oil of New Jersey and Socony Mobil-Socony being Standard Oil of New York), and Caltex, (jointly held by Standard Oil of California and Texaco.) In Part I of this article we showed how heavily loaded the Freeport Sulphur board was with Rockefeller family and allies. Recall that Augustus C. Long was a board member of Freeport while serving as Chairman of Texaco for many years. Long becomes more and more interesting as the story develops.
1958: CIA vs. Sukarno
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"I think its time we held Sukarno's feet to the fire," said Frank Wisner, then Deputy Director of Plans for the CIA, in 1956. By 1958, having failed to buy the government through the election process, the CIA was fomenting a full-fledged operation in Indonesia. Operation Hike, as it was called, involved the arming and training of tens of thousands of Indonesians as well as "mercenaries" to launch attacks in the hope of bringing down Sukarno.
Joseph Burkholder Smith was a former CIA officer involved with the Indonesian operations during this period. In his book, Portrait of a Cold Warrior, he described how the CIA took it upon themselves to make, not just to enact, policy in this area:
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before any direct action against Sukarno's position could be taken, we would have to have the approval of the Special Group-the small group of top National Security Council officials who approved covert action plans. Premature mention of such an idea might get it shot down ...
So we began to feed the State Department and Defense departments intelligence ... When they had read enough alarming reports, we planned to spring the suggestion we should support the colonels' plan to reduce Sukarno's power. This was a method of operation which became the basis of many of the political action adventures of the 1960s and 1970s. In other words, the statement is false that CIA undertook to intervene in the affairs of countries like Chile only after being ordered to do so ... In many instances, we made the action programs up ourselves after we had collected enough intelligence to make them appear required by the circumstance. Our activity in Indonesia in 1957-1958 was one such instance.
When the Ambassador to Indonesia wrote Washington of his explicit disagreements with the CIA's handling of the situation, Allen Dulles had his brother John Foster appoint a different Ambassador to Indonesia, one more accepting of the CIA's activities.
In addition to the paramilitary activities, the CIA tried psychological warfare tricks to discredit Sukarno, such as passing rumors that he had been seduced by a Soviet stewardess. To that end, Sheffield Edwards, head of the CIA's Office of Security, enlisted the Chief of the Los Angeles Police Department to help with a porno movie project the CIA was making to use against Sukarno, ostensibly showing Sukarno in the act. Others involved in these efforts were Robert Maheu, and Bing Crosby and his brother.
The Agency tried to keep its coup participation covert, but one "mercenary" met misfortune early. Shot down and captured during a bombing run, Allen Lawrence Pope was carrying all kinds of ID on his person to indicate that he was an employee of the CIA. The U.S. Government, right up to President Eisenhower, tried to deny that the CIA was involved at all, but the Pope revelations made a mockery of this. Not cowed by the foment, as Arbenz had been in Guatemala, Sukarno marshalled those forces loyal to him and crushed the CIA-aided rebellion. Prior to the Bay of Pigs, this was the Agency's single largest failed operation.
1959: Copper Mountain
At this point, Freeport Sulphur entered the Indonesian picture. In July, 1959, Charles Wight, then President of Freeport-and reported to be fomenting anti-Castro plots and flying to Canada and/or Cuba with Clay Shaw (see Part I of this article)-was busy defending his company against House Committee accusations
