Annex 2. 
On the basis of views presented by the parties and considered by the Committee of Good Offices, the Committee will suggest to the parties that they accept the following principles as a basis for reaching a political settlement:
(1) That the assistance of the Committee of Good Offices be used in working out and signing an agreement on the U.S.S. Renville for the settlement of the political dispute in the Islands of Java, Sumatra and Madura between the Government of the Republic and the Government of the Netherlands under the auspices of the Committee.
(2) That there be meanwhile a cessation of all activities by either Government relating directly or indirectly to the organisation of States or relations between the States in Java, Sumatra and Madura involved in the dispute between the Government of the Netherlands and the Government of the Republic.
(3) That on the signing of the political agreement the Civil Administrations which were functioning on 20th July, 1947, be restored within a period of not more than three months and that within a similar period the Netherlands Armed Forces be withdrawn to territories occupied by them on 20th July, 1947.
(4) That on the signing of the political agreement, provision be made for the gradual reduction of armed forces of both parties.
(5) That after the signing of the agreement, free economic activity, trade, transportation and communications be completely restored.
(6) That provision be made for a suitable period not less than six months nor more than one year after the signing of the agreement during which time uncoerced and free discussion and consideration of the vital issues will proceed. At the end of this period free elections will be held for self determination by the people of their political relationship to the Republic, Netherlands, United States of Indonesia.
(7) That a constitution convention be chosen according to democratic procedure to draft a constitution for the United States of Indonesia.
(8) That an agency of the United Nations be asked to observe the conditions during this period and the final formation of the United States of Indonesia.