In close consultation with us the Americans have now drafted an
overall plan for a settlement along the lines of paragraph 3 of my
telegram K.124. [2] We intend to seek Belgian approval of plan as
soon as possible with the object of submitting it to the parties
early in the week.

2. Last night, however, Hatta received a letter from Van Mook in
which the latter said that he was disturbed to find differences of
opinion between the delegations as to the interpretation of the
Renville principles. [3] He therefore invited Hatta to Batavia on
June 14th to consult with himself and his colleagues as the best
means of furthering a settlement.

3. The Committee received a copy of the invitation together with a
request from Van Mook that, in view of the delicate situation, the
Committee should do nothing which could disturb the matter.

4. Vredenburch who is behind this latest move is seeking delays.

As I have reported earlier, the Dutch policy appears designed to
bring about a breakdown without giving the Committee an
opportunity to clarify the position of the parties. The latest
move will make it most difficult to obtain Herremans' agreement
for the submission of an overall plan to the parties.

5. Our probable course will be,
(a) to press ahead as far as possible as proposed in paragraph 1.

(b) to suggest to Hatta, in view of Van Mook's implication that
talks between the delegations have failed, that
(1) he ask the Committee whether it is in a position to assist in
negotiations by suggesting a possible settlement,
(2) he reply to Van Mook expressing surprise that the latter
should suggest bypassing Committee before it has had an
opportunity to assist in reaching a settlement of the dispute.

(c) To endeavour to assist the Republic on Russian and Foreign
Affairs issues generally on which the Dutch will adopt a tough
attitude if Hatta's reply to Van Mook's letter is unsatisfactory.

6. This week will be crucial and I believe it essential that the
Committee now take the initiative and keep it. The possibility of
strong Dutch diplomatic action in Washington should not be
overlooked.