Part I. JAVA.

1. Sjahrir for the first time against his previously declared
policy which he has stubbornly maintained against pressure from
the Indonesians is afraid that the time will come when he and his
Government will have to leave Batavia. This change of view is due
to:

(a) The increasing build up of Dutch Forces.

(b) Lack of confidence in further negotiations with Dutch.

(c) Reports of the imminent departure of British troops.

(d) The fact that the Dutch are pressing for requisitioning of
buildings at present occupied by three important Indonesian
Government Ministers. These buildings were Dutch official
buildings before the war.

2. Sjahrir is very annoyed that Soekarno left Solo on tour just
before his arrival. This seems to be typical of Soekarno's fence
sitting tactics.

3. It is now disclosed that the outcome of the Communist party
meeting on 29th April was the election of Sardjono, Indonesian
Australian deportee, to lead the party. Sardjono served under me
for a time during the war.

4. Dutch protests against British policy continue to pour in.

5. Sjahrir has agreed to see Van Mook unofficially at Special
Allied Liaison Office.

6. Sjahrir is not at all optimistic about the outcome of further
negotiations. He says he is afraid that in the event of the
withdrawal of British troops from Java Indonesian military leaders
will fight the Dutch and they are confident that they can defeat
them. Military opinion here does not place such a defeat beyond
the bounds of possibility.

Part 2. SUMATRA
1. There is information to the effect that Hassan' [1] Hermani [2]
and the People's Front express confidence in the outcome of their
attempts to bring the People's Front into line with the Republican
Government but that this will take some time.

2. They are not yet sure whether armed organisations of the
People's Front will agree to line up with T.R.I. immediately.

3. Hermani says he thinks the situation generally can be compared
to that of Java one month ago.