http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB52/ (national security archive link)
http://www.thirteen.org/shadowplay/history.html (site with selected quotes below)
October 5, 1965
Fm: Marshall Green, U.S. Ambassador, Jakarta
To: State Department, Washington
"What actually happened is still obscure. We can help shape developments to our advantage ... spread the story of the Communist guilt ... treachery and brutality."
October 29, 1965
Fm: Marshall Green, U.S. Ambassador, Jakarta
To: State Department, Washington
"Moslem fervor in Atjeh apparently put all but few PKI out of action. Atjehnese have decapitated PKI and placed their heads on stakes along the road. Bodies of PKI victims reportedly thrown into rivers or sea as Atjehnese refuse to 'contaminate Atjeh soil.'"
November 4, 1965
Fm: Marshall Green, U.S. Ambassador, Jakarta
Fm: State Department, Washington
"The Army is doing a first class job here of moving against the Communists, and by all current indications is the emerging authority in Indonesia."
November 8, 1965
Fm: Marshall Green, U.S. Ambassador, Jakarta
Fm: State Department, Washington
"The Army with the help of Youth Organizations and other anti-Communist elements has continued systematic drive to destroy PKI in northern Sumatra with wholesale killings reported."
November 13, 1965
Fm: Marshall Green, U.S. Ambassador, Jakarta
Fm: State Department, Washington
"From 50 to 100 PKI members were being killed every night in East and Central Java by civilian anti-Communist troops with the blessing of the Army."
December 1, 1965
Fm: Marshall Green, U.S. Ambassador, Jakarta
Fm: State Department, Washington
"This is to confirm my earlier concurrence that we provide ... fifty million rupiahs for the activities of the Kap-Gestaup movement. ... This army inspired but civilian staffed action group is still carrying the burden of current repressive efforts targeted against PKI, particularly in central Java. ... The chances of detection or subsequent revelation of our support in this instance are as minimal as any black bag operation can be."
April 15, 1966
Fm: Marshall Green, U.S. Ambassador, Jakarta
Fm: State Department, Washington
"The problem is the impossibility of weighing the countervailing effects of exaggeration ... and the interests of people involved to cover up their crimes. The truth can never be known. Even the Indonesian government has only a vague idea of the truth. We frankly do not know whether the real figure is closer to 100,000 or 1,000,000 but we believe it wiser to err on the side of the lower estimates, especially when questioned by the press."
August 10, 1966
Fm: U.S. Embassy, Jakarta
Fm: State Department, Washington
"A sanitized version of these lists ... has been made available to the Indonesian Government last December ... and is apparently being used by security authorities who seem to lack even the simplest overt information on PKI leadership. Lists of other officials in the PKI affiliates ... were also provided to officials at their request."
This is what that last message was referring to:
http://www.namebase.org/kadane.html
The U.S. government played a significant role in one of the worst massacres of the century by supplying the names of thousands of Communist Party leaders to the Indonesian army, which hunted down the leftists and killed them, former U.S. diplomats say.
For the first time, U.S. officials acknowledge that in 1965 they systematically compiled comprehensive lists of Communist operatives, from top echelons down to village cadres. As many as 5,000 names were furnished to the Indonesian army, and the Americans later checked off the names of those who had been killed or captured, according to the U.S. officials.
"It really was a big help to the army," said Robert J. Martens, a former member of the U.S. Embassy's political section who is now a consultant to the State Department. "They probably killed a lot of people, and I probably have a lot of blood on my hands, but that's not all bad. There's a time when you have to strike hard at a decisive moment."
Information about who had been captured and killed came from Suharto's headquarters, according to Joseph Lazarsky, deputy CIA station chief in Jakarta in 1965. Suharto's Jakarta headquarters was the central collection point for military reports from around the country detailing the capture and killing of PKI leaders, Lazarsky said.
"We were getting a good account in Jakarta of who was being picked up," Lazarsky said. "The army had a 'shooting list' of about 4,000 or 5,000 people."
Detention centers were set up to hold those who were not killed immediately.
"They didn't have enough goon squads to zap them all, and some individuals were valuable for interrogation," Lazarsky said. "The infrastructure was zapped almost immediately. We knew what they were doing. We knew they would keep a few and save them for the kangaroo courts, but Suharto and his advisers said, if you keep them alive, you have to feed them."
And the reward for committing genocide? Weapons for more genocide!!
http://www.worldpolicy.org/projects/arms/reports/indoarms.html
During the 1977 House International Relations Committee hearing, George H. Aldrich, the State Department's Deputy Legal Advisor, testified that "roughly 90%" of Indonesia's weapons during the time of the 1975 invasion of East Timor came from the United States. As one high-ranking Indonesian general bluntly pointed out, "Of course there were US weapons used . These are the only weapons that we have."
And of course, the recent book burnings nobody paid attention to because some genocides can be ignored if they benefit the United States and its rich allies:
http://www.smh.com.au/news/world/indonesian-academics-fight-burning-of-books-on-1965-coup/2007/08/08/1186530448353.html
Publishers, academics and activists are attempting to halt the burning of Indonesian school textbooks detailing a 1965 coup attempt and slaughter of more than 500,000 alleged communists.
At least 30,000 history books have been torched since March, when the administration of President Susilo Bambang Yudhoyono banned several texts implicating the military in the events.
I found this Homeland Security Newswire article that mentions book burning as a tool for tyrants from the Nazis to the Taliban but no mention of Indonesia for some reason. It's just a coverup of one of the worst mass killings since World War II so no biggie, easily overlooked.
http://www.homelandsecuritynewswire.com/book-burning-history-tool-tyrants