369 Cutts to Department of External Affairs
Cablegram K301 BATAVIA, 21 April 1949, 8.30 p.m.
Please repeat to London for Burton.
The Netherlands Delegation has submitted today a reply to the Republican Working Paper  (K.300 ).
2. 'The Netherlands Government is prepared to agree to a return of the Republican Government to Djokjakarta, provided that a binding commitment is obtained on the two other subjects namely, firstly, "that the Republican Government shall order its armed adherents to cease guerilla warfare and co-operate in the restoration of peace and the maintenance of law and order" and secondly, "to make agreements concerning the time and conditions for the holding of a round table conference at The Hague".' 
3. Subject to these conditions, the Netherlands intend to submit a counter proposal as to the area to be restored to the Republican Government. The Netherlands Delegation has indicated, informally that it will propose a strictly limited area and will not agree to the inclusion of the Maguwo airfield five miles outside the capital.
4. Van Royen has made it clear that the Netherlands will only consider at these talks the ruling  of the Security Council of 23rd March and will not consider gradually enlarging the area under Republican control as required by paragraph four (f) of the 28th January resolution. 
5. Unless the Republican delegation makes unexpected concessions a breakdown in the discussions seems inevitable. There is a possibility that Hatta will come to Batavia for informal talks with Van Royen in the next few days.