BATAVIA, 1 June 1949
I interviewed Mr. Schrader today.
He did not anticipate any difficulty in reaching agreement on the request on the question of standards  for selected Fellows. He agreed it would be useful to talk the matter over informally with Dr. Ali, and was well aware that he should avoid any suggestion of desiring to supervise.
On the question of the allocation, he did not see how he could approve the offer of 50/50. He said that the Palace and Djadjadiningrat would never agree to this. As alternatives he suggested (a) that we alter the allocation to 2/1 against the Republic, or (b) that we made the offer to Indonesia as a whole.
He could then arrange that Dr. Ali and himself select the scholars.
In general, Mr. Schrader said that it was a pity that the political issue had been raised, as this obliged him to adopt a political standpoint and to oppose the allocation.
I suggested that it was he who was raising the political issue, since our offer was made direct to the Republic as an independent part of Indonesia, the de facto status of which we had recognized.
I promised to explore the possibilities of a compromise but emphasized that I did not see how we could alter our offer.