118 Ballard to Department of External Affairs
Cablegram 227 BATAVIA, 16 July 1947, 5.50 p.m.
IMMEDIATE TOP SECRET
My telegram 224. 
Since the arrival of Sjarifoeddin he and some of his Ministers have had talks with Van Mook and his advisers; and last night an agreement was reached subject to confirmation by Republic Cabinet at Djokjakarta today on following lines:
(a) Compromise regarding the joint gendarme[rie] administration involving regular and special force. Details later.
(b) Republic Government to issue and publish by midnight July 16th orders for complete cessation of hostilities and defensive measures including demolitions.
(c) Cessation of press and radio series of Dutch propaganda by July 17th.
(d) Republic to begin withdrawal of troops from perimeters and removal of mines etc. by July 19th. Maintenance of Law and Order to be assumed by Republican Police taking over from Army.
(e) Withdrawal of Republic forces to distance of ten kilometres from perimeters to be completed by July 21.
(f) Dutch to begin to withdraw troops from demarcation lines and handing over to the police as soon [as] the Republicans have effectively carried out the above measures.
2. Sjarifoeddin accepted conditions under considerable pressure and it remains to be seen whether his Government will also accept.
if not and also if the Republican Government accepts but fails to implement  Dutch Military action may be expected.
3. Understand Van Mook thinks Republican Government will accept but that it will probably be unable to carry out the conditions fully in all areas in which case some Dutch Military help may be necessary on a limited and local scale to clean up nests of irregulars; also that he thinks that the Republican Government may disintegrate in which case the Dutch would have to intervene.
4. Understand that Sjarifoeddin only expects difficulty over the gendarmerie issue in so far as it may involve the presence of the Dutch troops inside the Republic.
5. Republican Minister left by air for Djokjakarta this morning and Vice-Premier expected back this afternoon with reply.