Distribution: S/S EUR G FE S/P G/PM INR/OD DOD 
Castiella asked the Secretary how he viewed the situation in Indonesia. 
The Secretary said he did not feel that he really had a clear picture of what had transpired in Indonesia recently. It is too early to tell what Sukarno is going to do or 
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DECLASSIFIED 
E.O. 13292, Sec. 3.4 
State Dept. Guid r;n8 
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whether the Army will permit him to return to the status quo. The Secretary guessed that the situation would not become much worse than the status quo ante, and might conceivably be better. 
Castiella advised the Secretary that Sukarno had made determined efforts in August and September to purchase arms from Spain. Sukarno had also wanted to make a trip to Spain in September in connection with his proposed purchase. The Spanish, however, discouraged Sukarno's overtures. 
The Secretary asked if the Spanish Government knew for whom these arms were destined. There have been reports that arms had been furnished to irregular forces in Djakarta. 
Castiella replied that, as far as the Spanish knew, this was an official purchase of the Government of Indonesia. There was no specification as to who would receive the arms.