The following are the salient facts of the political situation which has developed in Java:-
(a) Terauchi (Japanese Supreme Commander of the Southern Region) on 19th August declared the independence of the Republic of Indonesia, naming Soekarno as President, and announced that Japanese would henceforth leave the Government of Java in his hands. The Indonesian Independence Committee accepted a constitution on purely Japanese lines.
(b) S.A.C.S.E.A. told Terauchi that he would hold him responsible for ensuring that the local Japanese military authorities maintained law and order in Java and remained responsible for the control of the country until the Allied occupation forces arrived.
(c) The Allied forces available are the following in Batavia- (I) One battalion group (British) which arrived on 29th September and is to be increased in the next few days to one brigade group, and (II) 400 Netherlands troops which also landed on 29th September. A further 600 Netherlands troops are expected shortly.
(d) Dr. Van Mook, Lt. Governor-General of the Netherlands East Indies, has informed S.A.C.S.E.A.- (I) That he assumes the latter will be responsible under the Netherlands East Indies Civil Affairs Agreement (my telegram 25th August D. No. 1557)  for the establishment and maintenance of law and order including lawful government of the whole area until the Netherlands East Indies Government is in a position to take over, and (II) That he (Van Mook) is fully prepared to have the situation discussed with political leaders as long as this does not imply direct or indi[re]ct recognition of the so-called Indonesian Republic.
(e) Admiral Mountbatten has instructed General Christison (Allied Commander Netherlands East Indies) to make clear that the only Government which he (SACSEA) recognises in Java is the Netherlands Indies Government.
(f) The Netherlands Embassy here have issued a statement declaring that Soekarno and his followers are Japanese puppets and calling attention to the 1942 Declaration by Queen Wilhelmina envisaging equality of status for component parts of the Kingdom of the Netherlands after liberation.