Prior to receipt of your 302  of 27th May in discussions with Lacy of Indonesian Department we reiterated views expressed in telegram 293.  Lacy said Cochran unusually optimistic and anticipated reoccupation of Djokjakarta should be settled by mid- June. He thought that Hague Conference could therefore be held by mid-July.
Lacy anticipated difficulty would be met in enforcement of cease- fire order. Bringing in of Representative from Guerrillas was important step though still not a guarantee that the cease-fire order would be carried out. He thought some of the Dutch were thinking in terms of using failure to carry out the cease-fire order as an excuse for further delay. Lacy, however, considered this attitude untenable and one which would not finally be adopted.
Lacy considered that Lovink had seen the wisdom in lending support to the present non-Communist Indonesian Leaders. He also expressed the view that Lovink's assistant, Dr. De Kat Angelino whom Lacy knows well, is a Liberal with an open mind on the question.
He considered United States unlikely to take any initiative, at least for some weeks.