Full dress discussions between the parties commenced this morning.
Cochran as chairman urged both delegations to go to the limit of their authority to reach agreement on the matters referred to in Security Council's directive  of March 23rd.
2. Van Royen stressed  the Netherlands desire to be accommodating and made the following points:
(a) he was prepared to give precedence in discussions to terms and conditions for restoration of the Republican Government at Djokjakarta provided, however, no binding commitments would be made until agreement had been reached on all points;
(b) despite recently expressed doubts transfer of sovereignty to U.S.I. in accordance with Beel plan  would be 'complete and unconditional';
(c) The Netherlands did not consider union should be 'super state'. Rather it would be an association of friendly equal partners which would only have such powers as both parties voluntarily desire conceded to it;
(d) in his reply to the Commission's invitation Roem had referred to the emergency government in Sumatra as the legal representative of the Republican Government until the latter was restored at Djokjakarta. If this attitude were maintained agreement would be impossible particularly on restoration of Djokjakarta as Roem would not be in position to make any binding arrangements for maintenance of law and order.
3. Roem emphasised the need for the restoration of the Republican Government to Djokjakarta to restore confidence in the Dutch goodwill destroyed by December 19th police action. He expressed willingness to discuss all matters on agenda but stressed that no binding decision could be taken except by Republican Government acting as such from Djokjakarta.
4. After these preliminary exchanges conference adjourned until Saturday.
5. The Netherlands Delegation has requested the commission to arrange for B.F.O., who have unanimously appealed to Beel, to participate in the talks.