Your 912. 
1. Lacy, State Department, had not yet completed assessment of situation in the light of Stikker's visit to Java. Our advice from Cochran was that replacement of Van Mook by Beel and other changes in Batavia might adversely affect negotiations. Lacy himself considered this surprising. He believes personal meeting between Stikker and Hatta should assist rather than hamper negotiations.
2. We stressed the serious consequences of any 'ultimatum' by Stikker and the need for firm attitude towards Dutch. Cochran said State Department had also received reports of possible police action and admitted that there was always a danger the Dutch would at least threaten such action. However, State Department did not fear any drastic steps unless infiltration and violence increased to such an extent that the Renville Truce began to crumble. Lacy did not believe either Stikker or Beel favoured police action.
3. State Department information is that Hatta will visit Batavia in a few days time. Lacy anticipates, though he has no information on the point, that Stikker will ask action by Hatta to restrain infiltration and violence in order to create a more favourable atmosphere. Hatta will probably require relaxation of the blockade with the same objective.