Our 162. 
1. At informal luncheon today given by Romulo which was attended by representatives here of most of the Delhi Conference countries including myself, considerable discussion was held on possible steps open to the Security Council. Most of those present agree that impending Conference at The Hague made it necessary for the Council to take some action quickly which would prevent the Dutch from seizing and retaining the initiative. Any so-called agreement issuing from The Hague Conference, however little bona fide would produce a new situation and lead to further complications.
However, no precise proposals emerged and there was no attempt to reach any conclusions. There was general agreement that at this stage the Security Council should be left to decide on its own actions and that it would not be advisable for the Delhi group to attempt any initiative. Both Romulo and Palar raised the question of sanctions but general feeling was that discussion of this would be premature.
2. The exchange of views was on a purely personal footing and was in no sense a meeting.
3. In a memorandum circulated yesterday to representatives here of the New Delhi countries, Palar after analysing Dutch non- compliance with January 28th resolution  claimed that guerilla successes in Indonesia have now become an extremely important factor in the situation and a solution not based on the present military facts would be bound to create great difficulties for the Republican leaders. Memorandum states that the change in the military position will have to find expression in the debates and decisions of the Security Council and that it would be in the interests of a speedy solution of the question to create a general atmosphere in which it would be impossible for the Security Council to avoid a discussion on the imposition of sanctions.
Indonesians feel that any action by the New Delhi countries at this juncture would be of 'tremendous importance'. Such action should consist of (A) verdict of Dutch non-compliance with the Security Council resolution (B) a statement of willingness of the participating countries functioning as a regional unit within the scope of the United Nations to impose immediate sanctions against the Dutch (C) pressure on the Council and its member countries to impose sanctions against the Dutch.
4. Please see my following telegram.