We saw Gani yesterday and Van Hoogstraten this morning. The
position is that agreement has been reached between them on the
Dutch draft covering both the message and conditions (referred to
as (A) and (B) in my telegram 148 [1]). Gani's English translation
however differs from the Dutch text in one particular. This may be
disposed of today.

2. The question of procedure is now in hand. As the message (A) is
intergovernmental we agree with the Dutch view that it is a matter
for Dutch and Indonesian Foreign offices here, while (B)
conditions should be signed for implementing departments i.e. by
Van Hoogstraten and Gani or of representatives.

3. Van Hoogstraten says that Gani at present wishes to sign both
but if this is so we would hope to persuade him to agree to the
above procedure. [2]

4. The method of transmission of joint message will be discussed
by both parties.

We expect to secure that it will be formally lodged with Ballard
as Consul-General. We have throughout insisted with both sides
that the Australian Government must receive message before
publication and each has concurred to this.

5. Your telegram 124. [3] Van Hoogstraten stated explicitly that
concrete steps towards implementation are already in progress and
will be carried on. For example agreement has been reached on
exchange of a definite quantity of the textiles now in Australia
against 70,000 tons of rice from the Republic. This has not yet
been finalised pending the outcome of talks as above; moreover the
Republican authorities concerned have not yet provided detailed
figures of rice available. This however will not delay the
conclusion of (A) and (B). Van Hoogstraten repeated that the
working out of details is a complicated task which will take some
time since it involves not only the allocation of commodity by
commodity, but also the price, item by item. Incidentally he
affirmed trucks will be allotted the Republic.

6. Reference to first paragraph above and my telegram 148. It
seems Schuurman [and] Boon may not have understood the positions
correctly as regards (B) conditions. Van Hoogstraten's account of
the position to us this morning suggests prospects are more
favourable than we gather from talks with Schuurman and Boon.

7. We expect report.