1. We have been in close touch with Sjahrir, Hadji Agoes Salim and their advisers over the weekend and they have been very receptive to our suggestions. However the following factors have made planning difficult.
(A) Sjahrir has not yet received advice from his Government that they have accepted joint American-Australian arbitration (your telegram 452 ).
(B) United States representatives here have been stressing to Sjahrir that United States have offered only good offices and that United States have not agreed to joint mediation and arbitration (earlier reports that United States had offered mediation and that Dutch had accepted were apparently incorrect).
(C) United States representative also placed stress on visit by Foote to Djogjakarta. (Your telegrams 462  and 463 ) suggesting that further action be delayed until results of visit are known.
(D) Dutch move to revive earlier proposal for voluntary invitation to group of neutral States to send observers  (we understand Washington Embassy have reported on this today ).
2. Sjahrir has as a result been somewhat hesitant to take action without new instructions although he has wide authority.
3. We emphasized again this evening points in your 462 and Sjahrir is now preparing statement tonight which will reiterate need for arbitration and acceptance of Australian proposal. He would make this statement at first opportunity if Council agrees to invite him to participate.
4. We are most concerned however at the attitude of United States who have throughout expressed doubts concerning jurisdiction of Council and will probably join United Kingdom, France and Belgium in opposing further action, especially approval by the Council of joint arbitration with which they do not agree. In addition we have no indication of what Soviet-Polish reaction may be.
5. We have drafted resolution (text in our immediately following telegram ), with these considerations in mind but risk of rebuff (A) by the United States (B) by the Council is still considerable and we propose to withhold resolution if we judge it expedient.