Your telegram 260. 
The proposal for arbitration in Indonesia in part arises from Article 17(2) of Linggadjati Agreement.  Dutch maintain that article did not contemplate arbitration in circumstances like present but legal advisers of United Kingdom Government are satisfied that it is applicable. Bevin thinks that arbitration should be quite formal and that no ordinary mediation such as was successful from time to time before is likely to succeed now that hostilities have broken out. Bevin saw United States Ambassador last night (23rd July) and United Kingdom Charge d'Affaires Washington has been instructed to see Secretary of State urgently for same purpose. India is not actually a party to approach to United States.
2. Your paragraph 2. It is view of present Provisional Indian Government (Pakistan will not be separated until August 15th).
Bevin saw Menon (Personal Representative of Nehru) on 23rd July and latter said India was concerned about situation and was prepared to assist in any way possible. Bevin outlined his proposal to approach the United States and Menon did not demur.
3. Arrangements which have been operative for supply of military equipment and training assistance to Dutch troops by United Kingdom Government are being considered in light of Dutch action.
I understand C.R.O.  will telegraph any decision when made. 
4. Embassy at Washington has been asked to report direct to you on United States reactions to Arbitration proposal.