My telegram 224. [1]

Since the arrival of Sjarifoeddin he and some of his Ministers
have had talks with Van Mook and his advisers; and last night an
agreement was reached subject to confirmation by Republic Cabinet
at Djokjakarta today on following lines:

(a) Compromise regarding the joint gendarme[rie] administration
involving regular and special force. Details later.

(b) Republic Government to issue and publish by midnight July 16th
orders for complete cessation of hostilities and defensive
measures including demolitions.

(c) Cessation of press and radio series of Dutch propaganda by
July 17th.

(d) Republic to begin withdrawal of troops from perimeters and
removal of mines etc. by July 19th. Maintenance of Law and Order
to be assumed by Republican Police taking over from Army.

(e) Withdrawal of Republic forces to distance of ten kilometres
from perimeters to be completed by July 21.

(f) Dutch to begin to withdraw troops from demarcation lines and
handing over to the police as soon [as] the Republicans have
effectively carried out the above measures.

2. Sjarifoeddin accepted conditions under considerable pressure
and it remains to be seen whether his Government will also accept.

if not and also if the Republican Government accepts but fails to
implement [2] Dutch Military action may be expected.

3. Understand Van Mook thinks Republican Government will accept
but that it will probably be unable to carry out the conditions
fully in all areas in which case some Dutch Military help may be
necessary on a limited and local scale to clean up nests of
irregulars; also that he thinks that the Republican Government may
disintegrate in which case the Dutch would have to intervene.

4. Understand that Sjarifoeddin only expects difficulty over the
gendarmerie issue in so far as it may involve the presence of the
Dutch troops inside the Republic.

5. Republican Minister left by air for Djokjakarta this morning
and Vice-Premier expected back this afternoon with reply.