Schermerhorn most confidentially confirmed to United Kingdom Consul-General yesterday that the threat of war has been averted for the present but that it would be foolish to imagine that the crisis is over.
United States Consul-General has communicated to Indonesian Government an aide-memoire dated 28 June urging them to co-operate without delay in immediate formation of interim government. This will probably be a contributory factor in keeping the door open.
Text follows in my immediate following telegram. 
Report from Djokjakarta states that working committee of KNIP ratified Soekarno's decree whereby he assumed all government powers, and also the formation of a presidential cabinet.