IMMEDIATE

Your telegram No. 626. [1]

State Department confirm that they asked Netherlands' authorities
at Hague some weeks ago to notify Indonesian officials of United
States decision to extend de facto recognition. [2] They state
Sjahrir referred to this in a recent broadcast commenting that
United States should not have taken this step through the
Netherlands.

Generally State Department are now awaiting reactions of
Indonesians to latest Netherlands proposals of 27th May. [3] They
have not yet had anything definite on this but state that both
United States and United Kingdom representatives in N.E.I. have
telegraphed reporting that in the last few days there has been a
more hopeful atmosphere than at any time hitherto. They add that
it is not yet clear whether this development should be attributed
to latest Dutch proposals or to visit of Netherlands Prime
Minister and Minister Foreign Affairs.

We hope to telegraph more fully shortly. Ends.