119 Ballard to Department of External Affairs
Cablegram 229 BATAVIA, 17 July 1947, 5.23 p.m.
My telegram 227. 
Situation today is extremely confused. The Republican Cabinet did not accept the terms last night nor issue and publish order for cessation of hostilities, demolitions, etc., as required. They sent the Vice-Premier, Setiadjit, back to Batavia to ask for 24 hours grace. This was refused. However, the Dutch have not moved yet.
All else is rumour and speculation. It is believed that Sjahrir has gone today to Djokjakarta, possibly summoned by Soekarno.
Dutch military action appears inevitable if The Hague consent and unless the Republic give way at the last moment.