We had full discussion with Palar and Menon (in the absence of Raupeirs , Washington) this morning. Palar is becoming increasingly nervous of the responsibility for the acceptance of the Council proposals in view of his isolation from his Government, and is doubtful of acceptance in Indonesia of the United States draft , which may leave the Dutch in dominating position long enough to make the Republic's task very hard. Both he and Menon seemed favourably inclined to your proposal re the commission drawing up plan of settlement for one reason, because it would delay matters until Sjahrir or another representative could arrive, and eliminate negotiation likely to be abortive.
2. Jessup gave us contents of revised resolution drawn up after consultation with the other members which will be tabled to-morrow with Norway, Cuba and China as co-sponsors. Text follows in clear and differs only to extent necessary to secure seven votes of which Jessup now confident. We put forward views expressed in your 26  which were sympathetically received. Jessup does not expect any decision to-morrow and seems to expect a number of amendments.
He felt that in view of inter alia consultations which have power , other than the members of the Council, leading the revised text, he could not now do other than table it perforce to help clarify discussion. He is communicating with Washington to secure the views of the State Department and Cochran August 24th proposal.  His main objection appears to be in the uncertainty of whether the delay in Council action on the settlement involved might lead to further bitterness in Indonesia making ultimate settlement still more difficult.
3. Also saw Cadogan to-day when he explained certain modifications which the Foreign Office wish to see in the United States draft.
None of these is in our direction but for most part are designed to make the text more palatable to the Dutch.