There appears no reason at present why conference cannot begin at The Hague early August. This allows ample time for restoration of the Republic at Djokjakarta and a further month for ratification by the Republican Government of results of negotiations and for inter-Indonesian conference. Responsible Dutch Officials agree that early August is a likely target date.
2. I agree that it is important that Conference should have made reasonable progress before next session of the Assembly. Delay at this stage is particularly dangerous since failure to restore the Republican Government seems to be- (A) Destroying Indonesian confidence in the Dutch intentions;
(B) leading to further unrest and disturbances.
The stage could be reached where the Republican leaders may not consider it worth while to accept responsibility for law and order in Djokjakarta.
3. The conclusion of the Commission's Military Executive Board based on reports from Military Observers for period ending late May or early June is that there has been 'an increase in guerilla and-or terrorist activities in practically all areas of Java and Sumatra. As a result of this the Military activities of the Netherlands forces have also shown an increase'.