Your telegram 1[6]1. [1]

Our covering letter stressed that our plan would not be reported
to the Security Council unless we felt that the parties could not
reach agreement on it or any other basis. [2] In this eventuality,
Dubois will join me in a full report irrespective of the Belgian
attitude unless he receives instructions to the contrary. He would
not, however, join in a report while there is still a possibility
of agreement.

2. I believe that the Dutch will continue delaying tactics and
avoid a final breakdown until after their elections. Consequently
there would be considerable advantage in the Security Council
considering our plan and the circumstances in which it was
presented before then. This might be achieved if the Security
Council were to ask us to report or publish our plan in view of
recent publicity.

3. My fears of the Dutch delaying tactics have been reinforced by
the concluding of the informal discussions between Van Mook and
Hatta. Van Mook, when pressed again by Hatta, flatly refused to
consider our proposals. When queried on the proposed powers of the
Provisional Government he agreed that it must be a real
Government, but considered that the details could be discussed
only at a future meeting which might be held in some border town
with Soekarno participating. He would not object to the Committee
of Good Offices participating. Since Soekarno will not be back
from Sumatra until next month this proposal seems clearly designed
to fob off the Republic and gain time.

4. There has been no agreement as such for inter island and
overseas trade. On June 8th an understanding in principle was
reached in an informal sub committee but this has yet to be
reported to the economic and financial committee, and conf[irmed]
[3] by the conference. In any case any agreement on sea traffic
will be subject to reconsideration if an agreement cannot be
reached, on traffic within a month. The sub committee
understandings would permit the use of Republican vessels but only
under Netherlands control (see paragraph one (one) (three) (four)
and (five) of my telegram K.119. [4] They are therefore of little
value to the Republic unless there is a radical change in the
Dutch attitude on the implementation.

5. The Committee has now approved the third interim report [5]
dealing with events up to June 11th. The report is already out of
date and has been so emasculated in obtaining agreement that it
contains little of value except an introduction which assesses the
current situation and should provide a lead to an eventual report
on our proposals.