Stikker has informed me that:
(a) The prospect of progress in political negotiations depends on whether Hatta will accept the Netherlands right to use Dutch forces in Indonesia in the interim period. Stikker made it clear that in view of Hatta's aide-memoire  and because of Netherlands Sovereignty the Dutch would not give way on this point.
(b) The Netherlands are dissatisfied with the Republic refusal to take the measures requested to reduce violations of the truce.
(c) The interim Federal Government must be formed by about December 15th.
2. Hatta has assured Sassen by letter (see paragraph four of my telegram K. 198 ) that he will abide by his aide-memoire which he regards as a gentleman's agreement. It is not yet clear, however, whether Hatta accepts the Dutch interpretation of the aide-memoire that the Dutch forces could be used in an emergency in Indonesia even against the wishes of the interim Federal Government.
3. The Netherlands Ministers and the High Representative of the Crown will have detailed consultations with the Leaders of the States to-morrow and will return to The Hague for consultations on Sunday.
4. Developments so far confirm my worst fears of Netherlands policy and the propose[d] early return of the Minister to The Hague suggests that direct negotiations have broken down.
5. Cochran has suggested to Hatta that he come to Batavia for further informal discussions with the Dutch and with members of the Committee. Cochran further suggests that negotiations under the auspices of the Committee and on the basis of the Cochran plan should immediately follow the informal talks.
6. Further to paragraph 4 of my telegram K.198 some lower level discussions were held at Kaliura[ng] on economic matters and were considered satisfactory by the Dutch.