265 Critchley to Department of External Affairs

Cablegram K168 BATAVIA, 5 October 1948, 6.20 p.m. Received 6

SECRET

At midnight on October 4th the Netherlands Delegation presented an oral note [1] to Cochran outlining a basis for a settlement and countering Republican conditions [2] for resumption of negotiations with conditions of their own.

2. Cochran is keeping contents of note to himself pending clarification by Dutch of number of points. He has promised to let me have a copy as soon as this clarification is obtained.

3. I understand from Dutch sources that proposals represent maximum concessions which the Dutch feel they can make and include suggestions consistent with draft bill for an interim Government [3] which is being prepared at The Hague in consultation with 'Federalists' (details of bill are not available but it is believed to provide that executive authority in interim period would rest with a selected directorate of three or five Indonesians. Veto powers would be retained by a High Commissioner who would also control Netherlands armed forces). American reluctance to pass on proposals suggests there may be last minute changes.

4. There are indications that the Dutch are determined to obtain a settlement by negotiation or force in the near future.

1 In a letter dated 4 October, the Netherlands Delegation accepted the US Delegation's draft agreement (see Document 237 and 238) as a basis on which to resume negotiations. However, two oral notes attached to the letter raised objections and suggested amendments to the Cochran proposals. The Netherlands Delegation demanded, as conditions for resuming negotiations, that the Republican Government cease any overt or underground actions and propaganda;

that it denounce acts of sabotage in Netherlands- and Republican- controlled territory; and that it put an end to illegal flights and the smuggling of arms and ammunition.

2 See note 3 to Document 254.

3 See note 3 to Document 227 and Document 240.

[AA:A1838, 403/3/1/1, xix]