Following for your information.
Indonesian Representative Palar has now received information from his Government suggesting that the Dutch are:-
(a) Preparing to proclaim an interim Federal Government within next few days.
(b) Planning to convene an East Indonesian conference immediately afterwards i.e. about 16th November.
(c) Taking measures which could be construed as preparation for further police action. Date suggested is 20th November and fact is emphasised that rains will commence in December.
2. Palar's instructions so far are not at the moment to request Security Council action but to approach Marshall. In observance of these Palar has already acquainted American Representative on Security Council, Jessup, with facts in his possession and understands Jessup will transmit these to State Department with his comments.
3. Palar believes that United States pressure on Dutch may still be effective and that Dutch may be making preparations in question as part of war of nerves to induce Indonesians to come to an early settlement on lines favourable to Dutch. He states Dutch negotiators are seeking acceptance of proposals similar to those which were used in making agreements between Dutch and puppet States. Such proposals are only partly acceptable to the Republic which insists in any case on negotiations on 'international level'. He suggested that Stikker's visit might be designed to show Dutch 'goodwill' before military action begins.