1. In spite of the narrowness of the gap between Dutch and
Republican positions at the present time, there is still
considerable uneasiness.

2. The Dutch are maintaining a very intransigent attitude and
emphasising the necessity for acts showing the good faith of the
other side before they will consider taking steps to get the
interim government going.

3. Beel's statement [1] was followed by a broadcast by Van Mook on
the same lines, and Soekarno replied in a broadcast on 11 July
emphasising that 'all objections put forward by the Dutch can be
eliminated and other things desired by them which may relieve the
tension can be realised', but maintaining that 'the instrument for
preservation of peace and order in Republican territories remains
in hands of Republic' though under 'joint command together with
other states of Indonesia and the Dutch'.

4. Republic has abolished Republican governors of areas outside
Republic and Gani says he is going to lift food blockade at Medan,
but apparently Van Mook insists on a unilateral withdrawal to
garrisons of Indonesian forces, and 'stopping the shooting', which
he says proceeds wholly from Indonesians, before establishment of
interim government. Republican authorities are considering how far
they can carry their people with them and how far they are
justified taking the risk if they concede this. Sjarifoeddin is
expected in Batavia today.

5. It is noteworthy that recent steps in negotiations have not
been between the delegations, but between the N.E.I. government
and the government of the Republic. It is not clear what
inferences are to be drawn from this. Possibly it is mixed up with
political considerations in Holland.